The Toronto stock market got a boost from the resource sector Tuesday as prices for oil and other commodities rose amid moves by China to encourage economic growth.
The S&P TSX Composite Index grew 165.06 points, or 1.3%, to end Tuesday at 12,623.36
The Canadian dollar faded 0.36 cents to 100.31 U.S. cents
Commodity prices advanced after China’s central bank moved over the weekend to cut banks’ reserve ratios to encourage lending. The People’s Bank of China said that it will reduce the proportion of cash that banks must set aside by half a percentage point to 20.5% from Feb. 24.
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 U.S. in cash, a 68% premium to Flint’s closing price Friday on the TSX.
The deal reflects booming growth in Alberta’s oilsands and North American shale gas and its shares jumped $9.87, or 66.2%, to $24.77.
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. Fortis shares dipped 41 cents to $32.44.
The TSX energy sector gained ground and Suncor Energy was up 63 cents to $34.77 and Cenovus Energy advanced 61 cents to $39.34.
Other energy service companies advanced in the wake of the Flint Energy deal with Trican Well Service ahead 81 cents, or 5%, to $17.00.
The base metals sector climbed as metal prices also climbed with the March copper contract up 11 cents to $3.84 U.S. a pound. China is the world’s biggest consumer of the metal, which is known as an economic barometer because it is used in so many businesses. Teck Resources gained $1.17 to $39.47 and HudBay Minerals gained 28 cents to $12.12.
The gold sector leaped, as Barrick Gold Corp. was ahead $1.48 to $48.31 while Goldcorp Inc. improved by $1.39, or 3%, to $48.20.
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 spiked 20.48 points to 1,678.63, while the Nasdaq Canada index nipped ahead 2.04 points to 418.85
All but two of the 14 Toronto subgroups were higher on the day. Materials jumped 3%, while gold shone 2.9% brighter and the metals and mining group hiked 2.8%.
The two laggards proved to be telecoms, down 0.3%, and utilities, off 0.2%.
ON WALLSTREET
In New York, stocks retreated Tuesday in afternoon trading, after the Dow crossing 13,000 for the first time in nearly four years. Investors grew more optimistic about Greece, yet their appetite for risk-taking had limits.
The Dow Jones Industrials improved 15.82 points to end a short week’s first session at 12,965.70
The S&P 500 added one point to 1,362.23, while the tech-focused Nasdaq slipped 3.21 points to 2,948.57
The Dow is up more than 6% in 2012. The S&P 500 and the Nasdaq are up 8.5% and 13.5%, respectively.
The last time the Dow closed above 13,000 was May 19, 2008.
Markets were shuttered Monday for President’s Day.
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.
Financial stocks continue to move higher with Goldman Sachs, Morgan Stanley, Credit Suisse, JPMorgan Chase and Citigroup up between 1% and 3%.
Shares of Netflix fell 3%, after cable company Comcast announced a new instant video streaming service.
Home Depot reported fiscal fourth-quarter earnings and revenue that topped analysts' expectations. The home improvement retailer cited favorable weather, 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 a year ago, on revenue of $15.97 billion U.S. Competitor Hewlett-Packard is scheduled to report earnings Wednesday.
Wynn Resorts shares climbed 6%, after reports claimed that the company will buy out Japanese gambling tycoon Kazuo Okada's 20% stake at a big discount.
Shares of Kraft Foods rose after the company reported earnings in line with forecasts and predicted earnings' growth of 9% in 2012.
Tuesday's initial gains were driven by progress made in Greece, which has been mired in a recession for years and desperately needs more bailout funds to stave off default.
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.
Treasury prices for the 10-year note fell, lifting yields to 2.04% from Friday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil for February delivery vaulted $2.66 to $105.88 U.S. a barrel.
Gold futures for April delivery climbed $21.60 to $1,747.70 U.S. an ounce.
