Canada's main stock index edged higher at the open on Tuesday, led by higher energy stocks and firmer oil prices, while overall sentiment was bolstered by progress in U.S. congressional budget talks.
The S&P/TSX composite index was 26.68 points higher Tuesday to 12,308.03
The Canadian dollar fell 0.13 cents to 101.54 cents U.S.
BMO resumes coverage of AuRico Gold Inc. with a market perform rating, raising its price target to $9.50 from $9, after the company completed the sale of its Ocampo project and announced a share buyback program. AuRico shares dipped 13 cents to $8.14
Elsewhere on the analyst front, Raymond James cut the target price on First Majestic Silver to $26 from $26.75 after the company said it would acquire Orko Silver Corp in a share and cash deal worth $345 million. First Majestic shares gained 34 cents to $20.63
Among energy issues, Athabasca Oil hiked 3.7% to $10.69.
ON BAYSTREET
The TSX Venture Exchange demurred 0.95 points to 1,184.04
Nine of the 14 Toronto subgroups were higher soon after the opening bell. Global base metals took on 0.6%, while energy and health-care were each 0.5% to the good.
The four laggards were weighed by materials, off 0.2%, while information technology and consumer staples faded 0.1% each.
ON WALLSTREET
Stocks rose slightly Tuesday, as signs of a deal taking shape in the fiscal cliff negotiations reassured investors somewhat.
The Dow Jones Industrial Average eked higher 2.75 points to begin Tuesday at 13,238.10
The S&P 500 acquired 2.20 points to 1,432.56. The Nasdaq Composite gained 11.18 points to 3,021.79
Investment bank Jefferies reported quarterly profits Tuesday that beat forecasts. Shares rose nearly 2%.
Late Monday, Apple lost an important ruling when a federal judge denied its request for a permanent ban on 26 Samsung products that Apple charged -- and a jury ruled -- had willfully infringed Apple's patents. However, Apple shares moved up nearly 1%.
In the wake of the massacre in Newtown, Connecticut, gun manufacturers continue to trade lower. Smith & Wesson dropped more than 7%, and Sturm Ruger fell nearly 2%.
After the closing bell Tuesday, tech giant Oracle will report quarterly results.
House Speaker John Boehner's suggestion that he was open to including higher tax rates on the wealthiest Americans has been described as "progress" by the White House. President Barack Obama responded to the offer with his own compromise on both tax increases and spending cuts.
Still, investors are hanging on nearly every word uttered by key players in the talks, and sentiment can shift quickly.
Treasury prices slumped, raising yields on the 10-year note to 1.78% from Monday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil was up 55 cents to $87.75 U.S. a barrel.
Gold prices inched ahead 50 cents at $1,698.70 U.S. an ounce.
