North American stock markets surged Wednesday as the head of the U.S. central bank says prematurely ending its aggressive $85-billion-a month monetary stimulus program could lead to more harm for the world's largest economy.
The S&P/TSX composite index gained 119.68 points, to greet noon at 12,862.11
The Canadian dollar dropped 0.55 cents to 96.82 cents U.S.
In corporate news, shares in Sears Canada Inc. jumped 10 cents to $9.45 after the retailer reported a $31.2-million loss as well as lower revenue in its latest quarter.
The loss amounted to 31 cents per share and contrasted with a year-earlier profit of $93.1 million or 91 cents per share, when its bottom line was boosted by an unusual gain. Sears says same-store sales fell by 2.6% while total revenue fell to $867.1 million U.S. from $928.0 million U.S. a year earlier.
Gold stocks led the pack at noon time, led in turn by Kirkland Gold, ahead 15.3% to $4.30, while Barrick Gold surged 2.5% to $20.38, and Argonaut Gold soared 8.3% to $6.91.
Among metals stocks – the next biggest gainers – Lundin Mining leaped 5.7% to $4.62, while Teck Resources hiked 3.7% to $29.53.
On the economic calendar, Statistics Canada reported this morning that retail sales came in at $39.5 billion in March, roughly the same as the month before. After removing the effects of price changes, particularly lower gasoline prices, retail sales in volume terms rose 0.7%.
ON BAYSTREET
The TSX Venture Exchange gained 6.88 points to 946.29
All but one of the 14 Toronto subgroups remained in the green midday, led by gold, spiking 3.5%, while metals and mining took on 2.8% and materials gained 2.6%.
Health-care remained the lone loser, off 0.3%.
ON WALLSTREET
Stocks soared Wednesday after Federal Reserve Chairman Ben Bernanke eased fears the central bank could scale back its stimulus policies anytime soon.
Bernanke told lawmakers that the Fed is aware of the potential risks associated with its bond-buying program, but said slowing the pace of purchases and raising interest rates prematurely could derail the economic recovery.
The Dow Jones Industrials gained 92.42 points above Tuesday’s record close, to break for lunch at 15,480.10
The S&P 500 index picked up 10.08 points to 1,679.24 – a new intraday high for that index. The tech-rich NASDAQ Composite tacked on 16.20 points to 3,518.35
Lowe's reported an increase in quarterly sales and profit, but the home improvement retailer missed estimates. Still, the stock was up on the news.
The results came one day after rival home improvement retailer Home Depot reported stronger-than-expected quarterly results.
Shares of Target fell after the retail chain reported a worse-than-expected decline in earnings.
Staples reported a decline in quarterly sales because of store closings. The office supplier also reported a drop in profit. But shares were higher.
Shares of Saks rallied about 19% following a strong sales report and a New York Post story saying the luxury retailer may be looking for a buyer.
Carnival dropped one day after the cruise ship operator took a beating following its dour sales outlook for the year.
Hewlett-Packard is scheduled to report quarterly earnings after the close.
Economically speaking, the National Association of Realtors said existing home sales edged up 0.6% in April, matching economists' expectations.
Prices for the 10-year U.S. Treasury slumped, raising yields to 1.99% from Tuesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.19 to $94.99 U.S. a barrel.
Gold prices was positive $1.50 at $1,379.10 U.S. an ounce
