A surprisingly strong reading on U.S. consumer confidence helped underpin a solid gain on the Toronto stock market Tuesday morning.
The S&P/TSX composite index advanced 71.04 points to greet noon Tuesday at 12,767.41
The Canadian dollar shed 0.3 cents to 96.41 cents U.S., as the greenback picked up strength following the release of the consumer confidence report and other data showing rising house prices.
Traders also looked to the Bank of Canada’s next interest rate announcement, scheduled for Wednesday morning. The central bank is widely expected to keep its key rate unchanged for some time to come.
Scotiabank’s adjusted earnings came in a $1.24 per share, two cents short of analyst estimates, but its overall net income rose to $1.6 billion from $1.46 billion a year earlier. The profit amounted to $1.23 per share, and compared with $1.15 per share a year earlier.
Scotiabank shares were off early lows, down 40 cents to $59.21.
On the TSX, the industrials sector advanced with Canadian Pacific Railway ahead $4.48 to $141.33.
The financial sector was up as Royal Bank gained 70 cents to $63.96.
Oil and copper prices advanced after being buffeted last week after a survey by HSBC Corp. showed a decline in China’s manufacturing for May. Canadian Natural Resources advanced 41 cents to $31.53.
The base metals sector gained with July copper three cents higher to $3.32 U.S. a pound. HudBay Minerals was up 26 cents to $8.60.
The gold sector erased early losses to move up while Iamgold climbed seven cents to $5.33.
There was also acquisition activity as Domtar Corp. said it has signed a deal to buy Associated Hygienic Products, a maker of store brand infant diapers in the United States, from DSG International for $272 million. Domtar shares improved $1.76 to $72.41.
There was no economic news out today.
ON BAYSTREET
The TSX Venture Exchange gained 5.19 points to 953.80
All but two of the 14 Toronto subgroups were positive by midday, led by industrials, jumping 1.4%, while consumer discretionary and energy stocks each trucked 0.9% higher.
The two laggards were health-care, off 0.7%, and information technology, dipping 0.2%.
ON WALLSTREET
U.S. stocks surged Tuesday as investors digested stellar economic data that appeared to put the housing and financial crises far in the rearview mirror.
The Dow Jones Industrials vaulted 154.47 points, or 1% -- off its highs of the day -- to 15,457.60
Today marks the 20th consecutive Tuesday that the Dow has inked gains. Markets in the States were shuttered Monday for Memorial Day.
The S&P 500 index grew 17.30 points to 1,666.90. The tech-rich NASDAQ Composite improved 40.51 points to 3,499.65
In corporate news, Tiffany reported better-than-expected earnings but lowered its revenue outlook.
Valeant Pharmaceuticals said Monday it was buying eye care specialist Bausch & Lomb from private equity firm Warburg Pincus. U.S. shares of Valeant, Canada's largest drug maker, rose 12%.
Shares of the electric car maker Tesla, backed by billionaire Elon Musk, rose more than 6%, topping $100 U.S.
In economic news, S&P/Case-Shiller reported that housing prices rose a better-than-expected 10.2% during the first quarter -- the strongest jump since 2007.
Separately, the May reading on U.S. consumer confidence hit a five-year high and jumped more than expected.
Prices for the 10-year U.S. Treasury sagged, powering yields to 2.11% from Friday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil prices moved higher $1.45 to $95.60 U.S. a barrel.
Gold prices reversed field and gained $9.20 at $1,395.80 U.S. an ounce
