Canadian stocks shot up Tuesday following the long holiday weekend
The S&P/TSX Composite Index ballooned 250.29 points, or 2.2%, to approach noon ET at 11,846.85
The Canadian dollar grew 0.47 cents to 98.79 cents U.S.
Canadian markets were closed Monday in observance of Canada Day.
Gold miners made headway with Centerra Gold. Corp. climbing 10.4% and NovaGold Resources Inc.adding 6%. Also making notable moves were Canacol Energy, up 6.6%, and Valeant Pharmaceuticals International rising 5%.
Economically speaking, a report from the Royal Bank commented on manufacturing this morning. The RBC Canadian Manufacturing PMI for June managed to inch higher for the fifth consecutive month. However, the improvement was slight, rising to 54.8 from 54.7 in May.
Any reading above 50 indicates improving conditions in the manufacturing sector with the wider the gap above this break even level, the greater the extent of the improvement.
ON BAYSTREET
The TSX Venture Exchange jumped 33.33 points, or 2.8%, to 1,224.32. The Nasdaq Canada index added 5.64 points to 362.20
All 14 Toronto subgroups gained midday. Metals and mining issues assumed their customary leadership role, up 4.3%, materials were better by 3.5%, and energy stocks gushed 3.4%.
ON WALLSTREET
U.S. stocks rallied on a holiday-shortened trading day, with trading volume expected to be light.
The Dow Jones Industrials tacked on 44.50 points to open at 12,915.89
The S&P 500 hiked 6.11 points to 1,371.62. The Nasdaq Composite Index added 18.69 points to 2,969.92.
Many investment professionals are off for the week. U.S. markets will close at 1 p.m. ET on Tuesday, and remain dark Wednesday to celebrate Independence Day.
Automakers are reporting June sales figures throughout Tuesday. Ford posted a 7% gain from last June, with 208,000 vehicles sold. Ford had warned last week that second-quarter losses from overseas operations -- particularly in Europe -- would be bigger than expected.
Chrysler sold 145,0000 vehicles in June, a 20% gain from a year ago, while General Motors sold nearly 249,000 vehicles, a 16% increase. Ford's stock rose 3% and GM's stock jumped 5% on the news.
Investors are still waiting for figures from Japanese-based rivals Toyota and Honda.
Barclays chief executive Bob Diamond will step down from his post, the bank said Tuesday. The news came a day after Barclays chairman Marcus Agius announced his own resignation amid the widening scandal surrounding the bank's manipulation of interbank lending rates. However, Agius was renamed chairman to lead the search for a new CEO on Tuesday. Barclays shares were down on the news.
After Monday's close, Microsoft announced it would take a $6.2-billion U.S. writedown on its aQuantive acquisition. It purchased the online advertising company in 2007 for $6.3 billion U.S. in cash.
Economically speaking, the Institute for Supply Management said its June Purchasing Manufacturers Index fell to 49.7, down from 53.5 in May. It was the first time the index fell below 50, which signals expansion in the sector, since July 2009.
Factory orders for May rose by 0.7%, after increasing 0.4% in April. That beat expectations; economists at Briefing.com forecast the number to climb by 0.5%.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.61% from 1.58% late Monday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose $3.72 to $87.45 U.S. a barrel.
Gold futures for August delivery gained $19.40 to $1,618.20 U.S. an ounce.
