The Toronto stock market was modestly higher Wednesday, led by gains in energy stocks as oil prices stabilized following steep losses.
The S&P/TSX Composite Index regained 32.34 points to end the session at 13,833.64
The Canadian dollar nipped up 0.05 of a cent to 103.89 cents U.S.
The energy sector was up as oil prices advanced following a drop of more than $6 U.S. over the last two sessions
Suncor Energy rose 16 cents to $42.21 and Cenovus Energy was ahead 29 cents to $36.40.
Crude had jumped as much as 30% from mid-February as markets quickly applied a high risk premium to oil amid a civil war in Libya and a wave of unrest that swept across several Mideast countries.
But after rising to almost $113 U.S. a barrel last Friday, there were worries about the degree to which high oil prices would impact demand and a general global recovery. Also, Goldman Sachs warned investors Monday that crude oil prices were due for a "substantial pullback."
Falling prices for oil and metals helped send the TSX plunging more than 400 points over the last two sessions. The selloff was also sparked by a report from Goldman Sachs strategist Noah Weisberger that he no longer was recommending Canadian stocks.
The assessment came after the TSX hit its high for the year last Tuesday around the 14,270 mark.
The gold sector rose as bullion prices also advanced Barrick Gold Corp. gained 17 cents to $50.18.
The base metals group lost strength as copper prices gave up early gains and fell for a third day. The May copper contract in New York dipped three cents to $4.35 U.S. a pound. First Quantum lost $3.70 to $121.20
The telecom sector was little changed as Calgary-based telecom Shaw Communications Inc. reported that its profits rose 20.6% to $167.3 million or 37 cents per share in the second quarter, meeting analyst expectations. Revenue increased 28.8% to $1.2 billion. Its shares declined 68 cents to $19.81.
ON BAYSTREET
The TSX Venture Exchange moved down 2.09 points to 2,301.68, while the Nasdaq Canada index added 12.14 points to 758.
In Toronto, eight of the 14 subgroups gained ground, led by information technology, up 1.6%, health-care, advancing 0.9%, and financials, ahead 0.6%.
The half-dozen laggards were weighed by metals and mining stocks, down 1.1%, global base metals, off 1%, and gold, sliding 0.4%.
ON WALLSTREET
In New York, stocks drifted back into positive territory late Wednesday as investors digested President Obama's plan to cut the U.S. budget deficit by $4 trillion U.S. over 12 years.
The Dow Jones industrial average moved up a slight 7.41 points to end the day at 12,271.
The S&P 500 nipped up 0.25 points to 1,314.41, while the Nasdaq Composite Index remained positive 16.73 points to 2,761.52.
Despite a strong open -- thanks to better than-expected earnings and revenue from JPMorgan Chase -- stocks spent the early part of Wednesday's session in the red.
The losses came after JPMorgan CEO Jamie Dimon's comments that mortgage-related losses would continue for some time, and a warning that investors should not expect additional dividend increases beyond the 25 cents set for this quarter. Shares of the bank slid more than 1% following the comments.
JPMorgan is the first major bank to report first-quarter results.
But the market again reversed course in the afternoon after Obama laid down a series of spending and deficit targets, adding he wants $3 U.S. in spending cuts for every dollar in additional tax revenue.
Shares of Tyco International fell 1.8%, after French company Schneider Electric denied reports that it is trying to buy the Swiss manufacturing conglomerate for $30 billion U.S.
On the economic front, the Census Bureau reported retail sales rose 0.4% in March. The number was slightly lower than the 0.5% increase economists expected, due to rising gas prices.
Stripping out gas, retail sales were only up 0.1% for the month.
A separate government report showed that business inventories rose 0.5% in February, slightly below forecasts.
The price on the benchmark 10-year U.S. Treasury gained ground, pushing yields down to 3.47% from Tuesday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil for February delivery gathered 75 cents to $107 U.S. a barrel.
Gold futures for June delivery slid 60 cents to $1,453 U.S. an ounce.
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