Toronto's main stock index recovered some ground on Wednesday, as positive economic data on both sides of the border cast investors’ fears aside of a possible Greek default.
The numbers were helped by better-than-expected data on U.S. industrial output and some improvement in the country’s moribund housing market.
The S&P/TSX Composite Index gained 88.87 points to begin Wednesday at 11,431.92
The Canadian dollar was flat at 99.29 cents U.S.
On the economic slate, Statistics Canada reported that manufacturing sales increased 1.9% in March to $49.7 billion, the largest advance since September 2011. The gain was led by the petroleum and coal products industry and was much better than the 0.3% gain that economists expected.
ON BAYSTREET
The TSX Venture Exchange inched back 0.85 points to 1,239.22, while the Nasdaq Canada reacquired 4.69 points to 369.73.
All but two of the 14 Toronto subgroups were ahead at the outset. Metals and mining sprinted 4.1%, while gold and materials each soared 2.5%.
The two laggards were utilities, down 0.1%, and consumer staples, off 0.04%.
ON WALLSTREET
U.S. stocks opened higher Wednesday, as investors welcomed strong U.S. housing data. But worries about political uncertainty in Greece kept the gains in check.
The Dow Jones Industrials prospered 81.21 points to open at 12,713.20.
The S&P 500 added 8.50 points to 1,339.16. The tech-rich Nasdaq Composite Index tacked on 17.32 to 2,911.08.
Facebook boosted the size of its IPO by 25%, seeking to raise up to $16 billion U.S., according to an SEC filing.
Shares of retailer JC Penney tumbled after it reported a much bigger than expected loss for the most recent quarter. The company also discontinued its dividend.
Staples reported earnings in line with expectations, but a surprise 1% drop in sales sent shares of the office supply company lower.
Shares of Deere & Co. were lower even after the company beat expectations on its quarterly results and raised its forecast.
Target Corp. also beat expectations and increased its forecast, pushing shares higher.
JPMorgan Chase moved higher Wednesday, a day after the bank held its annual shareholder meeting in Tampa, Fla., where shareholders approved pay packages for the bank's top executive, and affirmed their wishes to keep Jamie Dimon in the dual role of chairman and CEO. The stock is down more than 12% over the previous five trading sessions.
According to documents filed with the SEC, Warren Buffett's Berkshire Hathaway built new positions in General Motors and Viacom during the first three months of 2012.
News that Greeks were withdrawing hundreds of millions of euros unnerved investors but reports that the European Central Bank would continue funding the banks helped ease those worries.
Borrowing costs initially surged, with the Spain's 10-year yield jumping to 6.5%, before pulling back to 6.25%. Italian bond yields also jumped to 6% before easing to 5.8%.
Also helping stem the pressure were comments from European leaders. German Chancellor Angela Merkel said she wants Greece to remain in the euro-zone and will make every effort to help the nation get on solid footing. Spanish Prime Minister Mariano Rajoy also said it would be "a very big mistake" if Greece were to exit.
Economically speaking, housing starts jumped to an annual rate of 717,000 in April, from the revised level of 699,000 in March. Analysts had expected a rate of 680,000.
Meanwhile, building permits fell to an annual rate of 715,000 in April, from the revised figure of 769,000 in March. Analysts expected permits to fall to 730,000.
The Fed's reading on activity at the nation's factory was due Wednesday morning, with economists forecasting that industrial production rose 0.5% in April after being unchanged the previous month.
The latest report on crude inventories will be released at 10:30 a.m. ET, and minutes from the April meeting of the Federal Open Market Committee will be issued at 2 p.m. ET.
The price on the benchmark 10-year U.S. Treasury fell, inching the yield up to 1.81% from Tuesday’s 1.78%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell back another 96 cents to $93.02 U.S.
Gold futures for June delivery lost $18 to $1,540.20 U.S. an ounce.
