Canada's main stock index gained on Monday in a broad-based move led by Valeant Pharmaceuticals International Inc. after the company pulled back from acquisition talks and helped by natural resource stocks that rebounded after Friday's tumble.
The S&P/TSX index soared 92.47 points to close out Monday at 12,312.67
The Canadian dollar gathered 0.53 cents to 98.85 cents U.S.
Valeant gained $2.43, or 3.3%, to $76.83 after its $13-billion bid for generic drug maker Actavis was put on hold, according to a person familiar with the situation.
In the metals sector, Teck Resources was ahead 12 cents to $26.39.
On the TSX, the gold sector was up as Barrick Gold Corp. climbed 69 cents to $19.50.
Kinross Gold Corp. faded seven cents to $5.49 as it announced it is going ahead with a full feasibility study aimed at a $2.7-billion expansion of its Tasiast open pit gold mine in Mauritania. Kinross said Monday that based on a pre-feasibility study it is now considering a 38,000-tonne per day mill at the mine, up from a 30,000-tonne facility under consideration earlier.
The energy sector gained as Suncor Energy was up 36 cents to $29.64 as the company prepares to hand in first quarter earnings after the close Monday. Analysts expected net earnings of $1.01 billion or 71 cents a share, compared with profits of $321 million, or 66 cents per share a year earlier.
Canadian Natural Resources, which posts earnings Thursday, advanced 38 cents to $29.96.
Outside of the resource sector, the tech component was up while BlackBerry rose 53 cents to $15.78.
And consumer discretionary stocks were also supportive with Magna International up 58 cents to $60.92.
Other companies handing in earnings this week include Kinross Gold, grocer Loblaw Cos., First Quantum Minerals and Manulife Financial
In corporate news, Capstone Mining Corp. is spending $650 million U.S. in cash to buy a copper mine and an associated railway in Arizona from a subsidiary of BHP Billiton.
Capstone says the purchase of the Pinto Valley copper mining operation and the San Manuel Arizona Railroad Co. will immediately vault it into a position as an intermediate copper producer. Its shares dipped seven cents to $2.00.
No major Canadian economic data was released today.
ON BAYSTREET
The TSX Venture Exchange dipped 0.29 points to 964.93
All but one of the 14 Toronto subgroups were higher, led by metals and mining issues, up 1.1%, while global base metals and materials each climbed 1%.
The lone laggard was health-care, which plunged 6.9%.
ON WALLSTREET
Technology shares sparked a broad rally that boosted the S&P 500 to a record closing high and fueled the tech-heavy NASDAQ to its highest level in more than 12 years.
The Dow Jones Industrials advanced 106.20 points to finish Monday at 14,818.80
The S&P 500 index added 11.37 to 1,593.61. The NASDAQ Composite grew 27.76 points to 3,307.02
Apple was among the top gainers in the Nasdaq-100 and in the S&P 500 following rumours that the iPhone 5S could hit shelves as early as this summer, though the widespread expectation is for a fall release.
Hewlett-Packard, IBM and Microsoft were the biggest winners in the Dow.
U.S. stocks are on track to end April with gains this week. That would mark the fourth straight positive month this year.
Investors were already in a buying mood following the formation of a new Italian government over the weekend, which ended weeks of political deadlock and uncertainty in a country mired by recession.
Shares of Moody's, Standard and Poor's parent McGraw Hill and Morgan Stanley were big gainers after the firms settled two outstanding lawsuits, dating back to the financial crisis, that accused them of misleading investors about the risks involved with buying bonds backed by subprime mortgages.
J.C. Penney shares rose after the struggling retailer officially said it had secured a $1.75-billion U.s. loan from Goldman Sachs. Shares were also boosted by a New York Post report that claimed "at least" two major hedge funds have taken significant stakes in Penney, with one's investment worth over $10 billion.
In other corporate news, JPMorgan Chase announced Sunday that another of CEO Jamie Dimon's key executives, co-chief operating officer Frank Bisignano, is leaving the firm.
Earnings continue to roll in, with controversial supplements company Herbalife and gun maker Sturm Ruger set to release their quarterly results after the close.
Italian stocks rallied more than 2% after Enrico Letta was sworn in as Italy's prime minister. The news also pushed Italian bond yields to their lowest levels in more than two years.
Expectations for a further rate cut from the European Central Bank and continued monetary support from the Federal Reserve later this week were also lending support.
Economically speaking, the index of pending home sales increased 1.5% after a revised 1% decline the prior month that was larger than initially reported, figures from the National Association of Realtors showed today in Washington.
Economists forecast a 1% increase, according to the median estimate in a Bloomberg survey.
Separate data showed consumer spending rose more than projected in March. Household purchases, which account for about 70% of the economy, climbed 0.2% after a 0.7% gain the prior month, a Commerce Department report showed today in Washington.
Prices on the 10-year U.S. Treasury were lower, raising yields to 1.67% from Friday’s 1.66%. Treasury prices and yields move in opposite directions.
Oil prices acquired $1.22 to $94.22 U.S. a barrel.
Gold prices strengthened $16.30 to $1,467.20 U.S. an ounce
