The Toronto stock market turned slightly higher mid-morning Wednesday as traders hoped that Republicans and Democrats were set to announce a last-minute deal to avoid hitting the U.S. debt limit.
The S&P/TSX composite index nicked higher 10.74 points to greet noon Wednesday at 12,942.20
The Canadian dollar reacquired 0.34 cents to 96.65 cents U.S.
Commodities were generally off the worst lows of the session but the gold sector declined. Goldcorp. faded 53 cents to $24.44.
The base metals component eased as December copper on the Nymex dropped two cents to $3.28 U.S. a pound. First Quantum Minerals gave back 32 cents to $18.54.
Ivanhoe Mines jumped 11 cents, or 5.2%, to $2.24 in the wake of reports of strong exploration results at a platinum mine project in South Africa.
The industrials sector was down after SNC-Lavalin Inc. said it now expects consolidated net income in fiscal 2013 to be in the range of $10 million to $50 million, sharply lower than earlier guidance in the range of $220 million to $235 million.
Among other things, the engineering company blamed a number of money-losing legacy contracts and a $75-million charge related to a restructuring of its European operations. Its stock fell $2.31, or 5.23%, to $41.82.
The energy sector was ahead and Niko Resources climbed seven cents to $3.30.
On the economic beat, Statistics Canada reported that manufacturing sales moved down 0.2% in August to $49.5 billion, following three straight months of gains. Market call was for a rise of 0.2% during the month.
ON BAYSTREET
The TSX Venture Exchange dropped 2.53 points to greet noon at 926.80.
Nine of the 14 Toronto subgroups were higher by midday, led by health-care, up 1.2%, consumer staples, prospering 0.8%, and energy, better by 0.4%.
The five laggards were weighed mostly by gold, down 2%, materials, down 1.3%, and the metals and mining group, down 0.8%.
ON WALLSTREET
Stocks surged Wednesday as investors cheered news that Senate lawmakers have reached a deal to reopen the government and avoid a possible U.S. default.
The Dow Jones Industrials rocketed 202.74 points, or 1.3%, to pause for lunch at 15,370.80
The S&P 500 index hiked 21.48 points to 1,719.54. The NASDAQ leaped 43.15 points to 3,837.16
Stocks have been trading higher throughout the day, but the rally accelerated after Sen. Kelly Ayotte of New Hampshire said an agreement on the debt ceiling could be announced soon. House lawmakers have not yet decided on when to vote on the Senate bill, according to a spokesperson for majority leader John Boehner.
Shares of Bank of America gained after the financial giant reported better-than-expected third-quarter results.
Mattel shares jumped after the Barbie and American Girl manufacturer reported quarterly revenue and profits that beat analysts' estimates.
Stanley Black & Decker tumbled roughly 10% after the power tools maker lowered its full-year earnings outlook. The company said it expected "uncertainty created by the U.S. government's sequestration and shutdown" to hurt business and consumer spending.
Meanwhile, shares in BlackRock and PepsiCo inched higher after both firms released quarterly results that topped forecasts. American Express, IBM and eBay are set to report after-hours.
After the bell Tuesday, Twitter announced plans to list on the New York Stock Exchange.
Intel shares slipped after the chipmaker issued a pessimistic outlook for the rest of 2013 and lowered its profit forecast late Tuesday. But shares of Yahoo rose following its earnings report.
Rating agency Fitch put the U.S. on notice Tuesday afternoon, warning it could soon downgrade America's credit rating because of the "political brinkmanship" on display in Washington.
Prices for the 10-year U.S. Treasury gained, lowering yields to Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices gained 87 cents to $102.08 U.S. a barrel.
Gold prices slid $1.20 to $1,272 U.S. an ounce.
