The Toronto stock market was higher Tuesday as traders hoped for a quick end to the U.S. government's partial shutdown which began at midnight due to a political impasse in Washington.
The S&P/TSX composite index muscled higher 58.05 points to greet noon at 12,845.24
The Canadian dollar slid 0.23 cents to 96.80 cents U.S.
The industrial sector gained with Canadian National Railway ahead $1.23 to $105.60.
The energy sector was also ahead while oil prices were lower for a third day amid worries about the effect of the shutdown on the U.S. economy and weak Chinese manufacturing data. Talisman Energy improved by 20 cents to $12.02.
Miners were the biggest TSX weight with the gold sector down as prices for the traditional safe haven fell back. Barrick Gold Corp. dropped 48 cents to $18.70.
The base metals sector was down while metal prices were also lower with December copper down six cents at $3.26 U.S. a pound. First Quantum Minerals shed 65 cents to $18.53.
Real estate services company FirstService Corp. has sold Field Asset Services, a business that provides property services in the United States, for $55 million cash to Assurant Inc. FirstService shares added 12 cents to $40.08.
On the economic calendar, the September RBC Canadian Manufacturing Purchasing Managers' Index indicated a sharp jump in business conditions to 54.2 from 52.1 in August, the highest level of confidence over the past 15 months.
ON BAYSTREET
The TSX Venture Exchange eked up 0.52 points to 941.67
All but four of the 14 Toronto subgroups were higher by noon, led by health-care, up 1.8%, industrials, better by 1.2%, and information technology, increasing 1.1%.
The four laggards were weighed mostly by gold, 2.9%, while materials and metals and mining stocks each skidded 1.7%.
ON WALLSTREET
Congress failed to pass a budget and triggered a government shutdown for the first time in nearly two decades Tuesday. But Wall Street took Washington's latest breakdown in stride.
The Dow Jones Industrials moved up 62.45 points to pause for lunch Tuesday at 15,192.10
The S&P 500 index gained 13.74 points to 1,695.29. The NASDAQ spiked 39.02 points to 3,810.50
Shares of Apple got a boost after Carl Icahn tweeted that he met with Apple CEO Tim Cook Monday and "pushed hard" for a $150-billion U.S. stock buyback. Icahn added that the two plan to continue the conversation in three weeks, which will be around the time Apple releases its fiscal fourth-quarter earnings.
Icahn first revealed that he has a large stake in Apple in August, and has been discussing his desire for a larger share repurchase program ever since. Apple currently has a plan to return $100 billion U.S. to shareholders over the next three years, mainly by buying back its own stock. Apple also pays a dividend.
Major automakers were also issuing their monthly sales reports throughout the day. Ford shares rose nearly 2% after the automaker reported a 6% jump in sales for September. General Motors shares slipped after the company said sales dropped 11% in September, compared with a year earlier.
Drugstore operator Walgreen beat earnings forecasts, sending shares higher. With its 4% increase, Walgreen was the best-performing stock in the S&P 500. Rivals CVS Caremark and Rite Aid were also on the rise.
Netflix shares climbed after MKM Partners raised its price target on the stock to $370, from $285 U.S.
Shares of Merck also advanced after the drug maker announced that it plans to cut 8,500 more jobs worldwide.
J.C. Penney shares edged higher a day after sinking to a new multi-year low, even though hedge fund Perry Corp. reduced its stake in the company and the stock was downgraded by Argus Research.
Newmont Mining shares fell sharply as gold prices sank almost 3%.
Investors were also keeping a close eye on the state of the manufacturing sector Tuesday. The Institute for Supply Management's monthly report showed that manufacturing expanded more than expected in September, with the index rising to its highest level since April 2011.
Prices for the 10-year U.S. Treasury lost ground, raising yields to 2.63% from Monday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices fell 91 cents to $101.42 U.S. a barrel.
Gold prices slid $34.60 at $1,292.40 U.S. an ounce.
