The Toronto stock market opened slightly higher Tuesday amid lower commodity prices and a major deal for transportation giant Bombardier Inc.
The S&P/TSX Composite Index began Tuesday ahead 27.29 points to 11,429.07
The Canadian dollar perked 0.30 of a cent to 97.28 cents U.S.
One of Warren Buffett’s companies, NetJets Inc., has signed a deal to buy up to 275 Bombardier Challenger business jets that could be worth up to $7.3 billion U.S. Bombardier said it has also signed a 15-year service and maintenance agreement for the aircraft, worth as much as an additional $2.3 billion U.S. if all options are exercised.
In other corporate news, Canadian Pacific Railway’s David Raisbeck will step down as a member of its board of directors, reducing the number of directors at the company who were appointed before a proxy battle and subsequent boardroom shakeup. His resignation comes just weeks after New York-based Pershing Square Capital Management, CP’s biggest shareholder, succeeded in its months-long battle to oust Fred Green as CEO.
Ivernia Inc. is withdrawing from the Prairie Downs base metals project in Western Australia. Ivernia says a review of geological data shows the project’s potential does not justify exercising a purchase option under its earn-in agreement with Prairie Downs Metals Ltd.
Elsewhere, farm products retailer Agrium Inc said it expects its second-quarter earnings to be at or near the top of its forecast range due to higher prices for some of its wholesale fertilizer products.
ON BAYSTREET
The TSX Venture Exchange docked 2.85 points to 1,273.86. The Nasdaq Canada index added 2.85 points to 364.96
All but two of the 14 Toronto subgroups began the day in the green, led by metals and mining stocks, up 1.7%, global base metals not far behind, acquiring 1.6%, and gold, up 1.3%.
Only consumer staples and health-care stocks missed the party, down 0.3% each.
ON WALLSTREET
U.S. stocks followed European stocks higher Tuesday, a day after markets sold off on worries about the debt and banking crisis in Europe.
The Dow Jones Industrials took on 42.31 points, in Tuesday’s first hour to 12,453.54
The S&P 500 was 3.3 points higher to 1,312.23. The tech-rich Nasdaq Composite Index moved up 9.27 points to 2,819
Shares of Michael Kors shot up, after the fashion retailer reported fiscal fourth-quarter sales that more than doubled from year-earlier results. Results easily topped forecasts as well as the company's earlier guidance.
Juniper Networks shares rose, after the company announced a $1-billion U.S. share repurchase plan late Monday.
Apple shares dropped Monday on the day of its developer's conference, as its announcement of the new MacBook Air and other products wasn't enough to pull it from a recent slump, but rose slightly Tuesday.
Elections this Sunday in Greece are seen as a pivotal moment that could determine if the country remains a member of the euro currency union.
Trading could be choppy, with little U.S. economic or company news on tap. Investors will continue to monitor uncertainty in Europe, and Spain's request for up to €100 billion ($125 billion U.S.) in assistance from the European Union its banking system.
As the situation in Spain heats up, bond yields have risen again to about 6.7%. Italian bond yields also rose Tuesday, remaining above the 6% benchmark -- a warning sign that the country could need a bailout of its own.
Economically speaking, the U.S. Treasury Department will release its monthly budget report this afternoon. Investors will look for a repeat of last month, when the Treasury revealed a $59-billion U.S. surplus, the first monthly budget surplus since September 2008.
The price on the benchmark 10-year U.S. Treasury slumped slightly, raising yields to 1.63% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil picked up 40 cents to $83.10 U.S.
Gold futures for August delivery fell $5.40 to $1,591.40 U.S. an ounce.
