North American stocks rose on Tuesday, amid ongoing optimism that Washington is moving toward an agreement on a budget.
The S&P/TSX composite index was 36.27 points higher by Tuesday noon to 12,317.62
The Canadian dollar fell 0.17 cents to 101.50 cents U.S.
In commodities, oil prices trekked higher The TSX energy sector gained with EnCana Corp. gaining 41 cents to $20.17.
Air Canada unveiled plans to launch its new low-cost airline, Rouge, on July 1. The carrier will focus on leisure destinations in the United States and Caribbean and some routes in Europe. Shares of the company rose four cents to $1.74.
Heroux-Devtek shareholders have approved a $160-million special distribution resulting from the sale in August of its industrial and aerostructure operations to focus on its landing-gear business. Its shares increased eight cents to $12.67.
ON BAYSTREET
The TSX Venture Exchange fell 3.63 points to 1,181.36
All but three of the 14 Toronto subgroups were higher by midday. Energy stocks got 0.9% worth of lift, while global base metals and financials gained 0.8% each.
The three laggards were gold, off 1.5%, materials, sliding 1.1%, and consumer discretionaries, dipping 0.1%.
ON WALLSTREET
Stocks rose Tuesday, as prospects for a deal taking shape in the fiscal cliff negotiations reassured investors.
The Dow Jones Industrial Average progressed 86.16 points to greet noon Tuesday at 13,321.50
The S&P 500 acquired 10.08 points to 1,440.44. The Nasdaq Composite gained 34.57 points to 3,045.17
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 2%.
In the wake of the massacre in Newtown, Conn., gun manufacturers continue to trade lower. Smith & Wesson dropped 10%, and Sturm Ruger fell nearly 7%.
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 was 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 were down, raising yields on the 10-year note to 1.80% from Monday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil was up 74 cents to $87.94 U.S. a barrel.
Gold prices tumbled $23.10 at $1,675.10 U.S. an ounce.
