The Toronto stock market was slightly higher Tuesday amid misgivings about the effectiveness of a planned bailout for Spain’s banks and rising commodity prices.
The S&P/TSX Composite Index approached noon up 42 points to 11,443.78
The Canadian dollar perked 0.39 of a cent to 97.37 cents U.S.
Meanwhile, shares in transport giant Bombardier were up 27 cents, or 7.4%, to $3.92 after one of Warren Buffett’s companies, NetJets, signed a deal to buy up to 275 Bombardier Challenger business jets. Including a maintenance agreement, the deal could be worth as much as $9.6 billion.
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.
CP shares dropped 77 cents, or 1%, to $73.10
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.
Shares in Ivernia advanced a penny, or 11.8%, to 9.5 cents.
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. Agrium shares took on $1.62, or 2%, to $82.94.
ON BAYSTREET
The TSX Venture Exchange docked 4.36 points to 1,272.35. The Nasdaq Canada index added 3.10 points to 364.96
Eight of the 14 Toronto subgroups were still positive midday, led by gold, up 1.7%, metals and mining, surging 1.3%, and global base metals, climbing 0.9%.
The half-dozen laggards were weighed mostly by health-care, 1.6% less robust, telecoms, down 0.3%, and information technology, fading 0.2%.
ON WALLSTREET
U.S. stocks stayed in the green Wednesday, despite growing worries over the fate of Europe's banking system.
The Dow Jones Industrials took on 93.25 points to break for lunch at 12,504.48
The S&P 500 was 7.87 points higher to 1,316.80. The tech-rich Nasdaq Composite Index moved up 19.33 points to 2,829.06
Shares of Michael Kors shot up, after the fashion retailer reported fiscal fourth-quarter sales that more than doubled from last year's results. The report 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 -- the day of its developer's conference. Its announcement of the new MacBook Air and other products wasn't enough to pull it from a recent slump. Shares 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 1.62% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil picked up 60 cents to $83.30 U.S.
Gold futures for August delivery gained $13.60 to $1,610.40 U.S. an ounce.
