Stocks in Toronto enjoyed a higher open on Wednesday as speculation surrounding the European Central Bank's possible rate cut and the U.S. Federal Reserve's monetary easing policy continued.
The S&P/TSX composite index strengthened 41.36 points early Wednesday to 13,403.07
The Canadian dollar reacquired 0.37 cents at 96.02 cents U.S.
Magna International Inc reported a nearly 13% rise in quarterly sales as its European business improved. Magna shares were boosted $1.44 to $90.42.
Talisman Energy reported a smaller quarterly net loss compared with the year-earlier quarter, when it took a $1.04-billion impairment charge. Talisman shares inched up nine cents to $12.91
Agrium reported a sharply lower third-quarter profit and a disappointing forecast for the current fourth quarter. Agrium stock fell 80 cents to $90.52
Penn West Petroleum said it aims to sell non-core assets worth $1.5 billion to $2 billion before 2015 as part of a plan to focus on fewer fields centered on the Cardium field in Alberta. Penn West fell 68 cents to $10.95.
Torstar Corp reported a quarterly loss as it took an asset impairment charge of $85.5 million related to its media business. Torstar shares fell 18 cents to $5.60
On the economic beat, Statistics Canada reported that building permits in Canada moved up 1.7% in September to $6.5 billion, the seventh monthly advance since the beginning of the year.
Western University’s Ivey Purchasing Managers Index for October stood at 62.8. The corresponding Ivey PMI figure for September 2013 was 51.9, for October 2012, 58.3 and for October 2011, 54.4.
ON BAYSTREET
The TSX Venture Exchange regained 1.30 points to 946.91
Of the TSX subgroups, 10 were positive, led by gold, up 1.1%, the metals and mining sector, up 0.9%, and consumer discretionary stocks, up 0.6%.
The three laggards were consumer staples, health-care, and real-estate, down 0.2%.
ON WALLSTREET
The Dow rose to an all-time high Wednesday as investors focused on mostly solid corporate earnings.
The Dow Jones Industrials tacked on 83.42 points to begin Wednesday at 15,701.60. Microsoft and Chevron were the best performing blue-chips in the Dow 30. Only Intel, Nike and Home Depot were lower.
The S&P 500 index regained 9.12 points to 1,772.09. The NASDAQ recovered 3.53 points to 3,936.33
Health insurer Humana reported better than expected earnings before the bell.
Time Warner topped earnings forecasts and reaffirmed its guidance for the year.
Of the 374 companies in the S&P 500 that have reported earnings so far, 69% have topped analysts' expectations, according to S&P Capital IQ.
But Tesla shares plunged after the electric car maker's third-quarter results were not as strong as investors were hoping for.
Shares of teen apparel retailer Abercrombie & Fitch tumbled nearly 7% after the company warned of weak sales and said it was closing its lingerie chain Gilly Hicks.
CBS, Whole Foods and SolarCity are due to report earnings after the closing bell.
Investors will also keep tabs on Twitter once the market closes. The social media site, which has more than 230 million users, is widely expected to price its initial public offering this evening and begin trading on Thursday.
The IPO market has been booming as stocks trade near all-time highs. The S&P 500 has gained 24% so far this year, extending a bull market that started in March 2009.
Barracuda Networks, which provides cloud computing and network security services, priced its IPO at $18 U.S. a share, the low end of its price range. But the stock jumped 26% to nearly $23 U.S. a share in early trading. Avianca Holdings and Arc Logistics Partners also went public Wednesday.
Looking ahead to the rest of the week, investors are awaiting the U.S. October jobs report from the Bureau of Labor Statistics. The report, due out Friday morning, has a strong influence on market sentiment.
Investors are zeroing in on the economy as they attempt to gauge when the Federal Reserve will begin to slow the pace of its $85-billion-U.S.-per month stimulus program.
Prices for the 10-year U.S. Treasury nicked up, lowering yields to 2.65% from Tuesday’s 2.66%. Treasury prices and yields move in opposite directions.
Oil prices gained 78 cents to $94.15 U.S. a barrel.
Gold prices picked up $10.40 to $1,318.50 U.S. an ounce.
