The TSX was up at midday as data from important U.S. sectors was positive, but traders remained cautious ahead of a meeting of euro-zone leaders later this week
The S&P/TSX Composite Index gained 68.33 points to approach noon at 11,402.75
The Canadian dollar shed 0.19 of a cent to 97.48 cents U.S., a day after ratings agency DBRS confirmed the top long- and short-term ratings for the Government of Canada debt. The fall came amid a rise in the U.S. dollar on positive economic data from south of the border.
On the TSX, the energy sector gained ground with shares in Suncor Energy up 15 cents to $27.88.
In Canadian corporate news, MacDonald, Dettwiler and Associates Ltd. of Vancouver will pay $875 million U.S. to acquire a California-based company that makes commercial communications satellites. MDA says the addition of Space Systems/Loral Inc. will give it a critical mass in the U.S. market and global opportunities for growth. Shares jumped 24% or $10.91 to $55.55.
And Westport Innovations Inc. said it will provide General Motors with technology for natural gas engines. Westport stock gained $3.03, or more than 9%, to $36.36.
AGF Management Limited says its second-quarter profit fell to $23.8 million, or 25 cents per share, a decline of 30% from $33.9 million, or 35 cents per share, a year earlier. Shares were down 17 cents at $11.23 but had dropped to $10.78 earlier in the session, the lowest in at least a year.
Canadian Pacific Railway says that retired oil executive Rick George has resigned as a director, the latest departure from a board that was transformed by a hard-fought proxy battle led by the company’s largest shareholder. Shares fell 90 cents to $72.23.
Goldcorp Inc. says an Ontario judge has dismissed Barrick Gold Corp.’s claims that its acquisition of the El Morro project in Chile was illegal.
Barrick Gold Corp. the world’s largest gold producer, claimed in the Ontario court that it had a deal in October 2009 to acquire a majority stake in the project from European miner Xstrata PLC. Goldcorp shares lost 24 cents to $38.20, while Barrick shares shed 30 cents to $37.53.
ON BAYSTREET
The TSX Venture Exchange dropped 0.93 points to 1,168.03. The Nasdaq Canada index soared 7.32 points to 359.76
In all, 11 of the 14 Toronto subgroups had turned positive by noon, led by information technology issues, rocketing 4.2% higher, while energy stocks leaped 1.2% and industrials were 0.8% to the good.
The three laggards were gold, down 0.5%, metals and mining stocks, off 0.3%, and real-estate, trailing yesterday’s close by 0.1%.
ON WALLSTREET
U.S. stocks rallied Wednesday, following strong reports on durable goods orders and housing. But trading could turn choppy ahead of a key two-day Europe summit.
The Dow Jones Industrials zoomed 90.18 points to 12,624.85
The S&P 500 picked up 12.66 points to 1,332.65. The Nasdaq Composite Index gained 25.39 points to 2,879.45
Pesticide-maker Monsanto reported quarterly earnings of $1.63 a share on $4.2 billion U.S. in revenue, slightly better than expected.
Food producer General Mills posted quarterly and annual earnings, missing forecasts on both. CEO Ken Powell said rising commodity costs -- the highest in more than 30 years -- cut into profits.
Investors are also be keeping tabs on Facebook, since Wednesday marks the end of the so-called quiet period, allowing analysts to publish research on the social media company's estimated value.
Homebuilder Lennar jumped after reporting higher-than-expected earnings for the second quarter, with net income beating Wall Street's expectations.
Google will hold its annual developers conference beginning Wednesday in San Francisco. While the company has stayed mum on specifics, it is rumored to be working on its own tablet and is slated to unveil the latest version of its Android smartphone.
Shares of News Corp edged higher, after surging more than 8% Tuesday. News Corp. said it may split into two entities -- one comprising the 20th Century Fox film studio, the Fox broadcast network and the Fox News Channel, and the other housing its newspaper and book publishing businesses.
European leaders are under pressure to announce plans to backstop the debts of struggling nations, while also laying the groundwork for future growth.
The leaders will discuss "building blocks," including the formation of a banking union and an economic stimulus, to address long-term challenges facing the euro-zone.
But analyst expectations are low as investors grow more skeptical that anything concrete will emerge from the summit.
Spain has been particularly troublesome recently, with its sky-high borrowing costs and struggling banking sector.
Economically speaking, U.S. durable goods orders for May surpassed expectations. The U.S. Census Bureau reported new orders for manufactured durable goods in May increased 1.1% to $217.2 billion U.S. Analysts had expected half that.
Builders broke ground on more single-family houses for a third consecutive month in May and rising construction permits pointed to further gains, showing the residential real-estate market is weathering the U.S. economic slowdown.
Work began on 516,000 one-family houses at an annual rate last month, up 3.2% from April and the most this year, the U.S. Commerce Department reported today in Washington.
The price on the benchmark 10-year U.S. Treasury lost some ground, pushing the yield back to Tuesday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil for August delivery had improved 77 cents by lunch hour to $80.13 U.S. a barrel.
Gold futures for August delivery rose $1.30 to $1,574.30 U.S. an ounce.
