Equity prices sprang from the blocks early Tuesday, as good vibes persisted on both sides of the border, leading to record highs on Wall St. (see below)
The S&P/TSX composite index leaped 96.93 points to begin Tuesday’s session at 12,804.34
The Canadian dollar slipped 0.02 cents at 97.34 cents U.S.
Bank of Nova Scotia said quarterly profit rose 13%, driven by acquisitions in its foreign and domestic segments, and it raised its dividend. Scotiabank shares soared 89 cents to $61.69.
Canada's Competition Bureau has approved BCE Inc's plan to acquire Astral Media Inc for $3 billion, but the Bell parent's offer to buy the media company must still pass muster with the telecommunications regulator. BCE shares gained 16 cents to $46.91
Growing caution gripping the mining industry is having a big impact on exploration service providers such as Major Drilling Inc, which posted a quarterly loss on Monday and offered little hope of an early turnaround. Major shares acquired five cents to $8.47
ON BAYSTREET
The TSX Venture Exchange recovered 13.34 points to 1,110.51
All but two of the 14 Toronto subgroups were higher to begin Tuesday. Gainers rode the back of metals and mining, 1.8% higher, while global base metals jumped 1.7%, and materials hiked 1.6%.
The two losing groups were utilities, down 0.2%, and information technology, off 0.03%.
ON WALLSTREET
Blue chips in New York hit a new record high within the first few minutes of trading Tuesday.
The Dow Jones Industrials spiked 107.84 points to start Tuesday at 14,235.80. That topped both the Dow's intraday and closing records that were set in October 2007.
The S&P 500 index picked up 11.17 points to 1,536.17, and is within 2% of its record closing high of 1,565.15, also reached in October 2007. The tech-heavy NASDAQ Composite gained 31.31 points to 3,213.34.
After the market close, gun maker Smith & Wesson Holding Co is expected to report strong quarterly results. Gun sales have surged in recent months amid speculation about new gun control laws.
JC Penney's shares tumbled, as the struggling retailer is in the third week of a court battle with Macy's claims that Martha Stewart Living Omnimedia violated a previous agreement with Macy's in entering into a new partnership with J.C. Penney.
Genworth Financial Inc. shares rose on rumours that the company is planning a sale.
Investors will likely continue to keep an eye on Apple, which hit a new 52-week low on Monday. The stock is down 20% this year. Meanwhile, Google continues to hit new highs.
Investors will also be looking for any signs of progress in talks to end the budget impasse in Washington, known as sequester. The Obama administration has started making $85 billion U.S. of cuts and some federal workers have started getting furlough notices.
Aside from Washington's antics, investors will keep tabs on other economic news.
The Institute for Supply Management will release its monthly index on service sector business activity this morning. Economists are forecasting a slight improvement in that measure of the majority of the nation's economic activity.
Investors are also looking ahead to central bank meetings later this week in Europe, Japan and the U.K., all of which are expected to end with more promises of support the for world's major economies. The week ends with the U.S. jobs report which is forecast to show a pick up in hiring in February.
Prices on the 10-year U.S. Treasury stepped back, raising yields to 1.89% from Monday’s 1.88%. Treasury prices and yields move in opposite directions.
Oil prices restored 37 cents to $90.49 U.S. a barrel.
Gold prices regained $9.30 to $1,581.70 U.S. an ounce.
