Markets in Canada opened higher on Wednesday on optimism over a string of strong earnings.
The S&P/TSX Composite Index reacquired 44.50 points to start the session at 12,024.60
The Canadian dollar gained 0.34 cents, to 101.65 cents U.S.
Markets will watch for the outcome of Federal Open Market Committee's meeting, while Bank of Canada Governor Mark Carney testifies for a second successive day.
Stocks to watch this morning include Rogers Communications Inc., which said on Tuesday its quarterly profit dropped by a steeper-than-expected 16% as rising competition hurt its cable and wireless divisions. Adjusted net profit fell to $356 million, or 67 cents a share, compared with $423 million, or 76 cents, a year earlier.
Cenovus Energy Inc. reported a nine-fold jump in first-quarter profit on higher production. Net income rose to $426 million, or 56 cents per share, from $47 million, or six cents per share, a year ago.
CGI Group Inc, a technology outsourcing and consulting company, reported an 11% fall in second-quarter profit on lower margins.
Oil and gas whiz NiMin Energy Corp. said it would dissolve itself and sell its assets and use the proceeds to clear its debts, ending a four-month-old strategic review process that started in November. It said it would sell its assets in Wyoming's Big Horn Basin to BreitBurn Energy Partners LP for about $98 million.
ON BAYSTREET
The TSX Venture Exchange gained back 2.65 points to 1,368.42, while the Nasdaq Canada index regained 4.97 points to 407.06
In all, 10 of the 14 Toronto subgroups picked up ground. Information technology surged 1.1%, while industrials strengthened 0.9%, and the metals and mining group soared 0.7%.
The four gainers were weighed mostly by telecoms, settling 0.5%, gold, off 0.1%, and financials, sliding 0.04%.
ON WALLSTREET
In New York, stronger-than-expected results from Apple, Boeing and other major companies lifted stocks at the open Wednesday.
The Dow Jones Industrials added 89.50 points to start the session at 13,091.06
The S&P 500 grew 16.23 points to 1,388.20, while the tech-rich Nasdaq spiked 63.91 points to 3,025.51.
Investors are also awaiting a Federal Reserve policy announcement and chairman Ben Bernanke's news conference, where he will give his latest assessment of the economy.
Shares of Apple, the world's most valuable company, surged more than 8% Wednesday, a day after the company reported that its net income nearly doubled, on much stronger-than-expected iPhone sales. Apple's stock was among the top gainers in the S&P 500 and on the Nasdaq.
Wednesday also brought more strong corporate results for investors to consider, with Dow components Boeing and Caterpillar, along with telecom Sprint Nextel and health insurer Wellpoint and glass maker and tech supplier Corning all reporting better than expected results before the market open.
Boeing was the biggest gainer on the Dow after it reported earnings of $1.22 U.S. a share, easily topping the 94 cents U.S. a share forecast of analysts surveyed by Thomson Reuters.
Caterpillar was the sole loser on the blue-chip index, after it reported revenue that fell short of forecasts.
Sprint Nextel shares gained after the wireless provider posted a loss of 29 cents U.S. a share,
almost twice as bad as a year ago but better than the expected loss of 41 cents U.S. a share.
Wellpoint posted earnings of $2.34 U.S. a share, topping forecasts of $2.27 U.S. a share, sending shares higher.
Corning, whose Gorilla glass is used in Apple's iPhones and iPads, earned 30 cents U.S. a share, down from a year earlier but better than the 28-cent-U.S.-a share forecast. Shares of the company edged up.
Economically, the day's highlight will likely be the Fed's policy announcement and Bernanke's comments in the early afternoon. Few expect him to waver from his position that the economy will continue to warrant "exceptionally low" interest rates through late 2014.
Before the market open the Commerce Department's durable goods report came in weaker than expected, with new orders for big ticket items falling 4.2% -- worse than the 1.7% drop forecast by economists surveyed by Briefing.com.
New orders for nondefense capital goods, excluding aircraft, fell 8.9%. That reading in the report is taken as a barometer of business investment.
The Mortgage Bankers Association also reported a 3.8% decline in new mortgage applications for last week, despite the exceptionally low rates on home loans.
The price on the benchmark 10-year U.S. Treasury dropped, driving the yield up to 2.00% from Tuesday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil for May delivery gained 25 cents to $103.80 U.S. a barrel.
Gold futures for June delivery lost $4.00 to $1,639.80 U.S. an ounce
