The S&P/TSX composite index surged today -- up 688.91 points to 9,251.40 -- led by a jump in energy stocks amid rising oil prices. Stocks were also boosted amid news that Federal Reserve Chairman Ben Bernanke endorsed the idea of a new economic stimulus package.
Oil prices moved higher ahead of a meeting of the Organization of Petroleum Exporting Countries at the end of the week. OPEC is widely expected to cut production significantly in an attempt to support oil prices that have plunged by half from the July peak of $147 a barrel.
In corporate news -- Research In Motion was off 7.64 percent at $64.88, mirroring a similar decline in its US listed stock on fears that economic and competition pressures may cut into the company's sales estimates.
Garda World Security Corp. said Monday it has reached a five-year collective agreement covering its 800 cash logistics employees in Quebec. The company did not disclose details of the contract with the Canadian Union of Public Employees.
Sun Life Financial Inc. reported second-quarter earnings of $519 million or $0.91 per share, compared to $590 million or $1.03 per share in the year ago quarter. Total reported revenue for the quarter decreased to $4.41 billion from $4.5 billion in the prior year quarter. Total adjusted revenue for the quarter was $5.8 billion, higher than $5.6 billion in the year ago quarter.
In Canada -- the Bank of Canada is widely expected to chop its trend-setting interest rate tomorrow by as much as half a percentage point, a move that would mark the second time in two weeks that policymakers have taken drastic action to lower rates to combat the global financial crisis.
Economists generally agree the central bank must cut rates further to jump-start the Canadian economy amid weakening U.S. economic conditions.
Also -- foreign divestment in Canadian securities slowed to $730 million in August. Canadian holdings of foreign securities edged down $172 million.
Down south -- the Conference Board released its report on leading economic indicators for September. This broad, general reading on the economy rose 0.3 percent versus forecasts for a drop of 0.3 percent, according to a consensus of economists from Briefing.com. LEI posted a revised decline of 0.9 percent the prior month.
The Canadian dollar, meanwhile, was trading down 0.65 of a cent at 83.78 cents US.
BAYSTREET
Twelve of the TSX sub-groups traded higher today -- energy issues were up 14.29 percent followed by a 12.37 percent gain in gold issues and a 9.05 percent rise in mining stocks.
COMEX gold for December delivery rose $2.30 to settle at $790 US an ounce.
On the downside -- tech issues fell 0.05 percent.
Meanwhile, the TSX Venture Exchange was ahead 38.82 points to 984.94 while NASDAQ Canada stocks were off 32.67 points at 539.16.
ON WALLSTREET
U.S. stocks rallied sharply into Monday's close, pushing the Dow Jones Industrial Average above 9,000 after signs emerged that the credit markets were thawing and Federal Reserve chief Ben Bernanke said he backed more fiscal stimulus.
The Dow Jones Industrial Average rose 413.21 points, or 4.7 percent, to 9265.43, and the S&P 500 added 44.85 points, or 4.8 percent, to 985.40. The Nasdaq climbed 58.74 points, or 3.4 percent, to 1770.03.
Investors cheered comments from Federal Reserve Chairman Ben Bernanke that suggested a second economic stimulus package could be up for discussion. Additionally, comments from Treasury Secretary Henry Paulson and an improvement in lending rates added heft to bets that the credit market freeze is starting to thaw.
The crisis continued to send shocks throughout the global financial system. On Sunday, the Dutch government said it would buy a $13.4 billion stake in ING Groep to shore up the company's balance sheet, the Associated Press reported.
AIG said it will start selling off pieces of its business by the end of the year. The troubled insurer also said it expects to be able to repay the $85 billion bridge loan it got from the government last month after it nearly collapsed.
In other news -- Yahoo is planning sweeping cost cuts and a workforce reduction likely to exceed its January estimate of 1,000 layoffs, The Wall Street Journal reported, citing anonymous sources. The announcement could come as soon as Tuesday, when the firm is scheduled to release its third-quarter earnings report.
Longer-dated U.S. Treasury securities were edging higher. The 10-year was up 10/32 to yield 3.89 percent, and the 30-year was gaining 26/32, yielding 4.27 percent. The American dollar was stronger vs. its major foreign competitors.
U.S. light crude oil for November delivery rose $2.40 to $74.25 US a barrel on the New York Mercantile Exchange after hitting a 13-month low last week.
