Canadian stocks rose for the first time in four days as financial companies and base-metals producers advanced on signs of an improving U.S. and global economy and Potash Corp. of Saskatchewan Inc. surged.
The S&P/TSX composite index ended the day up 89.01 points to 13,347.58
The Canadian dollar gained but 0.015 cents to 100.61 cents U.S.
After six months of gains, the S&P/TSX slipped 1.4% this month through Jan. 21 as gold stocks plunged 12%.
Potash Corp. gained 2.8% to $164.27 as Hueniken raised his price forecast on the company’s U.S.-traded shares to $175 from $162.50, telling clients in a note that fertilizer prices are likely to increase.
Base-metals producers rose as copper futures gained with stronger demand in China and data showing industrial orders in Europe advanced.
Ivanhoe Mines surged 8.1% to $27.35. Teck Resources Ltd., Canada’s largest base-metals and coal producer, increased 1.9% to $59.79. Equinox Minerals Ltd., which mines copper in Africa, climbed 4.7% to $5.81.
Copper producer Quadra FNX Mining Ltd. plunged 10.8% to $13.90 after releasing 2011 forecasts that Greg Barnes, an analyst at TD, called “disappointing” in a note to clients. Earlier today, the shares tumbled as much as 16%, the most intraday since December 2008, when the company was known as Quadra Mining Ltd.
TD, Canada’s second-largest bank, increased 1.6% to $76.10. Manulife Financial Corp., North America’s fourth- largest insurer, climbed 1.6% to $17.52. Brookfield Asset Management Inc., Canada’s biggest real-estate company, rallied 2.4% to $33.16.
BlackBerry maker Research In Motion Ltd. rose for the first time in five days, gaining 2.6% to $62.35. RIM plans to release software that will allow users to segregate personal and work-related e-mail, keeping the work e-mail under the control of the user’s company, Reuters reported.
Cameco Corp., the world’s second-biggest uranium producer, rose 2.4% to $38.68 after TradeTech LLC said prices of the nuclear fuel advanced to the highest price since April 2008 last week.
Uranium One Inc., the producer controlled by Moscow-based ARMZ Uranium Holding, jumped 4.2% to $5.93.
Canadian National Railway Co., the country’s largest railroad, rose 1.5% to $68.45 after announcing a tentative contract agreement with the Canadian Auto Workers. The union had said it would strike tomorrow if an agreement was not reached.
Loblaw Cos., Canada’s largest grocery chain, gained 2.7% to $39.03 after Michael Van Aelst, an analyst at TD, raised his rating on the stock to "action list buy" from "buy."
ON BAYSTREET
The TSX Venture Exchange settled back 16.98 points to 2,2484.60, while the Nasdaq Canada index moved ahead 7.50 points to 765.60.
In Toronto, all but two of the subgroups were lower. The real-estate and global base metals groups advanced 2% each, while information technology improved 1.7%
Only gold stocks, off 0.7% and energy stocks, which faded 0.02%, kept things from being unanimous.
ON WALLSTREET
In New York, equities continued their eight-week winning streak Monday, with the Dow marching toward 12,000, as investors anticipate solid quarterly earnings results from the nation's largest companies.
The Dow Jones Industrials marched forward 108.68 points to close at 11,980.50
The S&P 500 was 7.49 points higher to 1,290.84. The Nasdaq Composite Index was 28.01 points stronger to 2,717.55.
While analysts say a slight pullback could be in the cards soon, companies are reporting strong earnings, which should drive continued positive momentum over the long term.
Meanwhile, Monday proved a moderate trading day, devoid of any major economic reports.
RadioShack shares tumbled nearly 12% after the electronics retailer forecast a weak fourth-quarter profit and announced its CEO Julian Day plans to retire in May.
The end of the year was tough on electronics retailers, with sales falling below expectations. Last month, RadioShack's larger rival Best Buy lowered its outlook for the full year.
JC Penney shares surged 6.7% in afternoon trading after the retailer announced it has named prominent hedge fund manager William Ackman and Steven Roth, chairman of Vornado Realty Trust, to its board of directors. JC Penney also said it plans to close six unprofitable stores and continue phasing out its catalog business.
Before the opening bell, Halliburton logged better-than-expected earnings. Shares of the company rose 0.8%.
McDonald's reported earnings in line with expectations. Shares of the fast food chain were up 0.3% in afternoon trading.
After the bell, American Express is expected to report earnings of 97 cents per share on revenue of $7.3 billion. Its stock fell 0.2% ahead of the earnings release.
Prices on the benchmark 10-year U.S. Treasury regained some ground, lowering the yield to 3.41% from Friday’s 3.42%. Treasury prices and yields move in opposite directions.
Oil for February delivery lost $1.86 to $87.69 U.S. a barrel.
Gold futures for February delivery rose $2.90 to settle at $1,345.50 U.S. an ounce on the Chicago Mercantile Exchange.
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