Growing hopes that the U.S. economy is slowly recovering sent stock markets surging Monday afternoon on both sides of the border.
Toronto's S&P/TSX composite index moved 365.66 points, or nearly 3.9%, higher to 9,862.62, extending a spring rally that has sent the main index up by almost 30% since early March.
On the TSX, Research In Motion moved ahead $1.43 to $87.23 after the BlackBerry maker issued a flurry of announcements. RIM detailed an alliance with Hewlett-Packard, a new generation of BlackBerry server software, and a new programming interface to encourage consumer-oriented applications for the swelling number of nonbusiness BlackBerry users.
UBS analyst Jeffrey Fan upgraded RIM from "neutral" to "buy."
The Toronto energy sector was higher as Petro-Canada advanced $1.25 to $40.98 while EnCana Corp. improved $3.14 to $60.15.
The financial sector gained, with CIBC ahead $2.38 to $56.00 and Royal Bank climbing $1.43 cents to $43.45.
The gold sector ran ahead as Barrick Gold Corp. gained $1.90 to $36.30.
The base-metal sector leapt ahead, as Teck Resources Ltd. shares gained $1.57 to $15.56 after it said it plans to offer senior secured notes to eligible purchasers as part of its ongoing efforts to pay down debt.
Anvil Mining Ltd. surged 26 cents or 23% to $1.39 - still down from $14.70 a year ago - after the Australia-based company completed a $34.5-million share issue to fund its Kinsevere copper development in Africa.
The Canadian dollar continued its climb, gaining 0.86 cents to 85.20 cents U.S.
ON BAYSTREET
All 13 TSX subgroups were higher; metals and mining leaping 9.1%, while materials gained 5.4% and energy was up 4.6%
The TSX Venture Exchange picked up 17.02 points to 1,027.19 while the Nasdaq Canada Index added 20.97 points to 704.65
ON WALLSTREET
The Dow Jones Industrials average added 214.53 points, or 2.6%, to end the day at 8,426.74, its highest point since Jan. 13.
The S&P 500 index gained 29.71 points to 907.23, ending above 900 for the first time since Jan. 8 and turning higher for the year, while the Nasdaq Composite Index tacked on 44.36 points to 1,763.56, its highest point since Nov. 4.
Stocks are coming off a strong April, in which the S&P 500 spiked 9.4%, the Dow gained 7.3% and the Nasdaq jumped 12.3%. The S&P 500 and Dow have gained for seven of the past eight weeks; the Nasdaq has jumped eight weeks in a row.
Adding to the festivities Monday were signals on the economic front that the housing meltdown in the U.S. may soon be ending.
Traders were heartened as the U.S. Commerce Department said construction spending rose 0.3% in March after five straight declines. Economists had expected a drop of 1.5%. And pending U.S. home sales rose 3.2% in March, according to the National Association of Realtors.
The hopeful data built on Friday's report that the Institute for Supply Management's monthly index showed the U.S. factory sector contracting at a much slower rate.
Investors are awaiting more news on the troubled American banking industry, with the results of government stress tests on the 19 largest U.S. banks due Thursday. Many investors anticipate the tests will show that several banks need more capital, and there are particular concerns about Citigroup Inc. and Bank of America Corp.
Citigroup is reportedly among the banks that will need to generate more money to stay afloat. The bank may have to raise another $10 billion U.S., according to the Wall Street Journal.
Bank of America shot down reports in the Financial Times that it has been told by the government that it needs to raise $10 billion U.S. in fresh capital.
Wells Fargo has reportedly been asked to raise additional money as the result of preliminary stress tests.
However, shares of the three companies rallied, along with the rest of the bank sector, as investors took the news in stride.
In deal making, Italian auto maker Fiat is in talks to buy most of the European operations of struggling General Motors. Fiat is in the process of taking an interest in Chrysler LLC, which filed for bankruptcy reorganization last week, without putting up any cash.
Shareholders descended upon Berkshire Hathaway's annual meeting over the weekend. At the meeting, chief executive Warren Buffett said the firm expects to report a first-quarter operating profit.
Sprint Nextel reported a quarterly profit, excluding items, surprising analysts who were looking for a quarterly loss. Shares gained 8%.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.16% from 3.15% Friday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose $1.27 to settle at $54.77 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $14 to settle at $902.20 U.S. an ounce
