The Toronto stock market found some lift from the resource sector Tuesday, as oil prices rose in the wake of the European Union agreement to lend Greece €130 billion to avoid a debt default.
The S&P TSX Composite Index began a short week up 103.72 points to 12,562.02.
The Canadian dollar faded 0.35 cents to 100.32 U.S. cents
Markets in Toronto were closed Monday for the Family Day holiday in Ontario.
Calgary-based oil and gas contractor Flint Energy Services Ltd. said Monday it is being bought by U.S. engineering and construction giant URS Corp. for $1.25 billion in cash. The deal, worth $25 a share, reflects booming growth in Alberta’s oilsands and North American shale gas. The price represents a 68% premium to Flint’s closing price Friday on the TSX.
And on Tuesday, Newfoundland-based power company Fortis Inc. said it is buying New York state utility CH Energy Group Inc. in a cash and debt deal worth $1.5 billion U.S.
In other corporate news, Research In Motion has released new operating software BlackBerry PlayBook OS 2.0 for download. The Waterloo, Ont.-based company says the new operating system enhances communications and productivity and offers expanded application and content support.
Natural gas engine technology maker Westport Innovations Inc. has changed a joint venture with Cummins Inc. to refocus on what could be strong growth in the North American market. The Vancouver company said Monday the Cummins Westport venture will narrow its focus on developing new fuel-efficient engines for North American customers.
On the economic front, Statistics Canada told us this morning that retail sales cooled 0.2% in December, following four consecutive monthly increases.
On the other hand, wholesale sales rose 0.9% in December to $49.6 billion, mainly on higher sales for motor vehicle and parts, as well as for food, beverages and tobacco products.
ON BAYSTREET
The TSX Venture Exchange grew 13.47 points to 1,671.62, while the Nasdaq Canada index nicked ahead 1.10 points to 417.91
All but two of the 14 Toronto subgroups were higher to begin the day. Materials and the metals and mining group vied for top spot, up 1.7% each, while gold shone 1.6% brighter.
The two laggards were health-care, off 0.4%, while consumer staples inched back 0.01%.
ON WALLSTREET
In New York, stocks hovered on either side of the breakeven line Tuesday as investors digested news that Greece was finally going to get more bailout funds and stave off default.
The Dow Jones Industrials gained 9.65 points to begin a short week at 12,959.50
The S&P 500 added 0.61 points to 1,361.84, while the tech-focused Nasdaq moved up 1.69 points to 2,953.47
Markets were shuttered Monday for President’s Day.
The Dow Jones Industrial Average is within spitting distance of crossing the 13,000 mark for the first time since May 20, 2008. The last time the Dow closed above 13,000 was May 19, 2008.
In the United States, several retailers, including Dow component Wal-Mart Stores, released their quarterly results ahead of the bell. While Wal-Mart missed expectations causing the big box retailer's shares to drop nearly 4%, most of its competitors fared better, offering more signs of an economic recovery.
Home Depot reported fiscal fourth-quarter earnings and revenue that topped analysts' expectations. The home improvement retailer cited favorable weather as a reason for its strong performance, saying sales at U.S. stores open a year or more climbed 6.1%.
Macy's reported better-than-expected earnings and sales that were in line with forecasts.
Dell reports its quarterly results after the bell. The computer maker is expected to report earnings of 52 cents U.S. per share, down slightly from 53 cents U.S. a year ago, on revenue of $15.97 billion U.S. Competitor Hewlett-Packard is scheduled to report earnings on Wednesday.
Wynn Resorts shares climbed 7%, after reports claimed that the company will buy out Japanese gambling tycoon Kazuo Okada's 20% stake at a big discount.
After weeks of negotiations and market speculation, euro-zone finance ministers completed a deal early Tuesday that will provide Greece with the €130 billion in funding it needs to avoid default next month.
For its part in obtaining this second bailout plan, Greece needs to make severe budget cuts that reduce its debt to a figure 121% of its gross domestic product by 2020. Currently, debt is 160% of GDP.
Treasury prices for the 10-year note fell, lifting yields to 2.03% from Friday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained $1.19 to $104.43 U.S. a barrel.
Gold prices surged $23.80 U.S. an ounce, or 1.4%, to $1,749.80 U.S.
