Markets in Canada’s biggest centre opened higher on Tuesday with investors awaiting events later this week for signs of how trading in 2014 will shape up.
The S&P/TSX composite index climbed 90.68 points to open Tuesday at 13,586.22
The Canadian dollar tumbled 0.67 cents to 93.20 cents U.S.
National Bank Financial raised the rating on Alaris Royalty to outperform from sector perform as the company continues to invest in existing successful partners, adding an incremental $5 million to its Killick partner. Alaris shares leaped 50 cents to $31.00
CIBC cut the price target on Kirkland Lake Gold to $3.50 from $4, saying the likelihood of sale of company's shares or assets is low given the current appetite in the merger and acquisition market. Kirkland Lake shares docked three cents to $2.57.
Economically speaking, Statistics Canada reported this morning that Canada's merchandise imports edged up 0.1% while exports were unchanged in November. As a result, Canada's trade deficit with the world went from $908 million in October to $940 million in November.
The Ivey Purchasing Managers Index (PMI) by the end of December 2013 dropped to 46.3, compared to a November figure of 53.7, a December 2012 figure of 52.8, and 63.5 for December 2011.
The PMI asks whether managers’ purchases last month were higher, the same, or lower than the previous month. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange eked higher 0.70 points to 946.75
All but three of the 14 TSX subgroups were higher, health-care the runaway winner, picking up 4.1%, information technology strode 1.6% higher, and energy stocks added 0.9%.
The three laggards were gold, down 1.1%, materials, down 0.7%, and the metals and mining group, off 0.1%.
ON WALLSTREET
Investors may finally be ready to step back in to the market this week.
The Dow Jones industrial average tacked 110.98 points to begin doing business Tuesday at 16,536.08
The S&P 500 index gained 10.64 points to 1,837.41. The NASDAQ recovered 30.92 points to 4,144.67, leading what could be the first gains of the year so far.
On the corporate side, Netflix shares slid following a downgrade from Morgan Stanley.
Shares of Palo Alto Networks rose after the security company on Monday announced its acquisition of Morta Security, a cyber-security company.
Shares in Samsung Electronics edged lower after the South Korean tech giant announced its operating profits will take a hit amid increased competition in the smartphone market.
Economically speaking, investors were somewhat encouraged following a report that showed that the U.S. international trade gap narrowed in November.
The smaller-than-expected trade deficit bodes well for stronger economic growth for the fourth quarter.
Prices for 10-year U.S. Treasuries were unchanged, keeping yields at Monday’s 2.96%.
Oil prices improved 19 cents to $93.61 U.S. a barrel.
Gold prices fell $10.40 to $1,227.60 U.S. an ounce.
