A surprisingly strong reading on U.S. consumer confidence helped underpin a modest gain on the Toronto stock market Tuesday.
The S&P/TSX composite index advanced 54.14 points to finish Tuesday at 12,750.51
The Canadian dollar shed 0.52 cents to 96.18 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 at $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 net profit amounted to $1.23 per share, up from $1.15 per share a year earlier. Scotiabank shares unchanged at $59.61.
On the TSX, the industrials sector led advancers, with Canadian Pacific Railway ahead $2.55 to $139.40.
The financial sector was up as Royal Bank gained 84 cents to $64.10 while Bank of Montreal, which reports earnings Wednesday, added 39 cents to $63.70.
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. An official report on factory production in the world’s second-largest economy will be released later in the week.
The energy sector was up as Canadian Natural Resources advanced 46 cents to $31.58.
The base metals sector gained with July copper two cents higher to $3.31 U.S. a pound. HudBay Minerals was up 19 cents to $8.53.
The gold sector fell as Barrick Gold faded 18 cents to $19.88.
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 $1.58 to $72.23.
Telus Corp. has received approval from the Ontario Superior Court for its proposed $380-million acquisition of Mobilicity, a struggling rival that provides cellphone service in several major cities in three provinces.
The acquisition has also been approved by Mobilicity’s bondholders, but Industry Minister Christian Paradis is still reviewing the deal.
Telus shares were off a dime at $37.18.
There was no economic news out today.
ON BAYSTREET
The TSX Venture Exchange gained 5.80 points to 954.14
Of the 14 Toronto subgroups, gainers nosed out losers eight to six, with industrials surging 1%, energy stocks gaining 0.9%, and global base metals tacking on 0.8%.
The half-dozen laggards were weighed mostly by health-care, down 0.6%, gold, off 0.5%, and real-estate, sliding 0.3%.
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 106.29 points, to 15,409.40
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 10.90 points to 1,666.50. The tech-rich NASDAQ Composite improved 29.74 points to 3,488.89
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 7%.
Shares of Netflix slumped after the much-hyped new season of Arrested Development kicked off over the Memorial Day weekend.
Shares of the electric car maker Tesla, backed by billionaire Elon Musk, rose more than 8%, topping $100 U.S. for the first time.
Banana purveyor Dole sank more than 6%, after the company announced that it would suspend its plan to buy back $200 million U.S. of its own shares.
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 2.14% from Friday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil prices moved higher 88 cents to $95.03 U.S. a barrel.
Gold prices faded $6.40 at $1,380.20 U.S. an ounce
