The Toronto stock market headed higher Tuesday afternoon amid reports that U.S. senate leaders were close to reaching a deal to increase the country's debt ceiling and forestall a possible default.
The S&P/TSX composite index was positive 39.35 points to end Tuesday at 12,931.46
The Canadian dollar dropped 0.25 cents to 96.35 cents U.S.
The base metals sector advanced with December copper unchanged at $3.31 U.S. a pound. Teck Resources climbed 73 cents to $27.89.
The gold sector was ahead as Barrick Gold Corp. was ahead 65 cents to $18.46.
The energy sector was ahead as Canadian Natural Resources gained 44 cents to $33.74.
The tech sector was up as Wi-LAN Inc. announced patent settlement deals with U.S. tech companies Hewlett-Packard Co. and Novatel Wireless Inc. The deals end litigation with both. Financial terms were not disclosed. Wi-Lan shares gained 13 cents to $4.25.
BlackBerry rose 15 cents to $8.50 as it appealed to customers to stay with the troubled smartphone maker while it restructures. In an open letter released Monday afternoon on Twitter and Facebook, and in some newspapers Tuesday, BlackBerry tells its "customers, partners and fans" that they can continue to count on the company.
The financials sector was also higher with National Bank ahead 54 cents to $86.36.
The Sunday Times reported that TD Bank is considering buying the Royal Bank of Scotland's U.S. retail business Citizens for $13 billion U.S. TD Bank and RBS both declined comment on the report and TD shares fell 19 cents to $92.32.
The industrials sector was down as the Teamsters union warned of a potential strike or lockout at Canadian National Railways starting on Oct. 28. The union represents some 3,300 conductors, trainmen, yardmen and traffic co-ordinators at CN, whose shares fell 42 cents to $109.07.
Speaking of things economic, national home sales edged up 0.8% from August to September. Figures released today by the Canadian Real Estate Association also say actual activity came in 18.2% above levels in September 2012.
ON BAYSTREET
The TSX Venture Exchange dropped 0.24 points to end Tuesday at 929.13
Nine of the 14 Toronto subgroups were ahead on the day, with gold stocks surging 3.1%, materials progressing 2.1%, and the metals and mining group gaining 1.5%.
The five laggards were weighed most by utilities and consumer discretionaries, each down 0.5% and health-care, off 0.3%.
ON WALLSTREET
U.S. stocks ended in the red Tuesday as lawmakers in Washington continued to wrangle over a budget deal.
The Dow Jones Industrials plummeted 133.25 points, to close at 15,168
The S&P 500 index stepped back 12.08 points to 1,698.06. The NASDAQ slid 21.26 points to 3,794.01
Citigroup was the latest big bank to disappoint investors. The company reported third quarter profits and revenues that fell short of analysts' expectations. The bank noted that the spike in interest rates over the summer caused a slowdown in new mortgages and re-financings, as well as bond trading.
Coca-Cola reported an increase in its third-quarter profit, as global sales volume rose 2%. Johnson & Johnson shares moved higher after the company reported gains in quarterly sales and profit.
Yahoo and Intel are set to report results in the afternoon.
J.C. Penney shares slid sharply as the struggling retailer continues to face doubts about its future. Shares dropped almost 9% to a 30-year low.
FedEx shares rose sharply after the shipping giant announced plans to buy back 32 million shares, bolstering its existing share repurchase program.
Tesla and Microsoft gained ground after Wall Street analysts upgraded their ratings on the stocks.
Meanwhile, Facebook shares jumped after Evercore analysts said they believe the social media company's stock will rise to $60 U.S. and reiterated their overweight rating. The stock shaved some gains as the broader market slipped into the red.
Apple shares moved higher, briefly crossing $500 U.S. a share for the first time in over a month. The company sent invitations Tuesday to a special event on October 22. The new iterations of the iPad and iPad mini are expected to be the focus.
U.S. Senate leaders have said they have made "tremendous progress" toward an agreement to end the partial government shutdown and raise the debt limit, but investors are taking a cautious approach.
Even if the Senate gets a deal, it still needs to win support in the House of Representatives, which is far from certain. And there were reports Tuesday morning that the House may push a separate bill.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.72% from Monday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.32 to $100.99 U.S. a barrel.
Gold prices regained $4.60 to $1,281.30 U.S. an ounce.
