The Toronto stock market moved higher near midday Wednesday, led by metals and mining stocks as traders in the U.S. clung to hope that discussions over the looming "fiscal cliff" deadline would lead to a resolution.
The S&P/TSX composite index approached noon 67.77 points higher to 12,402.11
The Canadian dollar fell 0.01 cents to 101.35 cents U.S.
The TSX metals and mining sector gained, with Sherritt International rising 5.6% to $5.70 and Teck Resources lifting 2% to $36.22.
March copper declined about four cents to $3.61 U.S. a pound. Teck Resources climbed 1.9% to $36.17.
On the economic beat, Statistics Canada told us this morning that wholesale sales moved higher 0.9% to $49.2 billion in October, following a decline of 1.5% the previous month.
Moreover, the number of people receiving regular Employment Insurance benefits in October edged up 4,600, or 0.9%, to 535,000, after a slight drop in September.
ON BAYSTREET
The TSX Venture Exchange slipped 0.83 points to 1,175.17
All but three of the 14 Toronto subgroups were higher by midday, led so by metals and mining, up 2.2%, while financials gained 1.1% and information technology added 1%.
The three laggards proved to be real-estate, which, along with telecoms, shed 0.3% each, while gold lost 0.2%.
ON WALLSTREET
U.S. stocks were flat Wednesday as investors clung to the belief that politicians in Washington can resolve the fiscal cliff stand-off after weeks of gridlock.
The Dow Jones Industrial Average shed 16.82 points by noon to 13,334.10
The S&P 500 dipped 3.08 points to 1,443.71. The Nasdaq Composite faded but 0.01 points to 3,054.52
Early Wednesday, UBS said it will pay $1.5 billion U.S. to settle claims in the U.S., U.K. and Switzerland related to rigging Libor benchmark interest rates. The settlement was widely expected and shares of UBS rose on the news.
Also, the Treasury Department announced it will exit all of its investment in General Motors within the next 12-15 months as part of its efforts to wind down its investments in the Troubled Asset Relief Program (TARP). Shares of GM were up more than 7% Wednesday.
Trading firm Knight Capital said it will merge with rival and partial owner Getco, just three weeks after Getco made its offer. Knight Capital stock gained 6.6%.
In other corporate news, FedEx reported that earnings fell due to a weakened global outlook and the impact of Superstorm Sandy.
FedEx is often viewed as a bellwether for the broader economy due to the nature and global scope of its business. But even though profits were down, they still topped forecasts. Shares of the shipping giant gained more than 3%.
Cereal maker General Mills posted better-than-expected quarterly earnings Wednesday morning as well.
After the closing bell Tuesday, tech giant Oracle reported quarterly results that beat analysts' forecasts for profits and revenues. The stock was up 3.5%.
Shares of U.S. gun makers bounced back a bit Wednesday after struggling following the tragedy at the Sandy Hook school in Connecticut last Friday. Smith & Wesson and Sturm Ruger both gained more than 3%. Shares of Cabela's, a sporting goods retailer that specializes in hunting gear and guns, were also slightly higher.
Investors apparently were willing to dismiss the latest warning from ratings agency Fitch Wednesday. Fitch reiterated it may strip the U.S. of its AAA credit rating if Washington is unable to strike a deal soon to avert the fiscal cliff and allow borrowing to rise.
Early Wednesday, UBS said it will pay $1.5 billion U.S. to settle claims in the U.S., U.K. and Switzerland related to rigging Libor benchmark interest rates. The settlement was widely expected and shares of UBS rose on the news.
Economically speaking, the Census Bureau said housing starts fell 3% in November to an annual rate of 861,000.
Treasury prices regained some ground, lowering yields on the 10-year note to 1.80% from Tuesday’s 1.83%. Treasury prices and yields move in opposite directions.
Oil was up $1.58 to $89.51 U.S. a barrel.
Gold prices picked up $1.60 at $1,672.30 U.S. an ounce.
