The Toronto stock market was higher Tuesday as traders hope a two-day meeting of the U.S. Federal Reserve will yield some guidance on the future of the central bank's stimulus measures.
The S&P/TSX Composite Index gained 78.56 points, to end Tuesday at 12,367.46
The Canadian dollar docked 0.22 cents to 97.96 cents U.S.
The consumer discretion sector grew, as Tim Hortons rose $2.15, or 4%, to $56.03 after New York-based hedge fund Scout Capital Management upped its ownership stake in the Canadian restaurant chain to 5.5% with a view to putting pressure on management to make changes to boost profitability.
Scout says it has engaged in discussions with senior management at Tim Hortons about the chain's capital structure and expenditures, the timing and size of its share repurchases, management compensation metrics and technology investments.
Tech stocks were also higher with BlackBerry ahead 58 cents, or 4%, to $15.18 after RBC Dominion Securities boosted its outlook for the company, predicting a profit this fiscal year instead of a loss thanks to stronger-than-expected shipments of its new BlackBerry 10 devices. RBC analysts raised their BlackBerry 10 shipment forecasts to 3.5 million units for the fiscal first quarter, from their previous forecast of 2.75 million.
The telecom sector was up with Telus Corp. ahead 50 cents to $35.43.
The energy sector was ahead as Suncor Energy rose 48 cents to $31.72 while Talisman Energy was ahead 20 cents to $12.04.
The financial sector climbed and Manulife Financial improved by 39 cents to $16.42.
The industrials sector also provided lift as Canadian National Railways advanced $1.63 to $101.31.
Transport giant Bombardier Inc. announced that it has received an order worth up to $1.035 billion U.S. from VistaJet, which operates a fleet of private business aircraft. VistaJet placed firm orders for 20 Challenger 350s and acquired options for 20 more of Bombardier's long-range business jets during the second day of the Paris Air Show, a major event for the aviation industry. Its shares slipped 14 cents to $4.56.
The gold sector declined as Barrick Gold Corp. faded 50 cents to $19.25.
The metals and mines sector dropped while July copper fell four cents to $3.15 U.S. a pound. First Quantum Minerals shed 16 cents to $16.78.
In other corporate news, Hudson's Bay Company says its current president, Bonnie Brooks, has been named to the position of vice-chairman and Liz Rodbell, its executive vice-president and chief merchant, has been promoted to president. Its shares were off 49 cents to $16.26.
ON BAYSTREET
The TSX Venture Exchange stepped back 4.05 points to 929.99
In all, 10 of the 14 Toronto subgroups were positive on the day, led by information technology and consumer discretionary stocks, each up 1.7%, while energy stocks gathered 1.2%.
The four laggards were weighed on most by gold, down 3.1%, while materials sagged 1.5% and the metals and mining group dropped 1.3%.
ON WALLSTREET
U.S. stocks rose Tuesday after reports on inflation and new home construction eased fears the Federal Reserve is about to slow the pace of its stimulus program.
The Dow Jones Industrials strengthened 138.38 points to 15,318.20
The S&P 500 index gained 10.63 points to 1,649.67. The tech-rich NASDAQ Composite hiked 30.05 points to 3,482.18.
A report on consumer prices showed that inflation remains subdued, while a report on the housing market was mixed.
Sony shares climbed 3% after Dan Loeb's Third Point hedge fund increased its stake and is upping the pressure on the company to agree a partial spin-off of its entertainment business.
Nokia shares rose after a report in the Financial Times raised speculation about a potential merger with China's Huawei. Meanwhile, shares of BlackBerry rose on rumours about a deal with Lenovo
Shares of Hormel fell after the processed meat company lowered its earnings outlook for the year.
Economically speaking, the government's consumer price index for May edged up 0.1%, according to the U.S. Bureau of Labor Statistics. The CPI was expected to have risen by 0.3%. The so-called core CPI, which excludes food and energy prices, rose 0.2%.
Separately, the Census Bureau said the number of new homes breaking ground in May rose 6.8%. The number of building permits filed last month rose 3.1% in the month. The numbers were more or less as expected.
Investors are likely to remain on edge until they hear more from Fed Chairman Ben Bernanke about the central bank's plans for its bond-buying program. Bernanke is set to speak at a news conference Wednesday afternoon.
In a PBS interview that aired late Monday, President Obama told Charlie Rose that Bernanke has "already stayed a lot longer than he wanted, or he was supposed to."
Prices for the 10-year U.S. Treasury lost a bit of ground, raising yields to 2.18% from Monday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices jumped 70 cents to $98.47 U.S. a barrel.
Gold prices fell $15.90 to $1,367.20 U.S. an ounce
