Canada's main stock index advanced broadly on Wednesday after the World Bank issued a brighter outlook for global economic growth, a development that would benefit the export-oriented Canadian stock market.
The S&P/TSX composite index picked up 75.93 points to greet noon at 13,768.31
The Canadian dollar gained back 0.12 cents to 91.47 cents U.S.
Financials, the index's most heavily weighted sector, rose 0.5%. Manulife Financial Corp climbed 1.4% to $21.88, while Royal Bank of Canada added 0.3% to $71.11.
Higher oil prices supported gains in the energy sector, with Suncor Energy Inc advancing 0.3% to $37.36.
The materials sector, which includes mining stocks, gained 0.6%. Barrick Gold Corp rose 0.5% to $19.59.
Magna International Inc forecast 2014 sales below analysts' expectations due to lower revenue in its complete vehicle-assembly business. Shares in the auto parts maker was nevertheless up 0.8% at $92.88.
On the economic front, the number of home sales processed through the MLS® Systems of Canadian Real Estate Boards and Associations and other co-operative listing systems was down 1.8% on a month-over-month basis in December 2013, marking the third straight monthly decline. Activity now stands 5.2% below the peak reached in September 2013
ON BAYSTREET
The TSX Venture Exchange regained 5.25 points to 969.96
ON WALLSTREET
The market seems to be finding its footing thanks to strong bank earnings.
The Dow Jones Industrial Average vaulted 122.64 points to pause midday at 16,496.50
The S&P 500 index gained 10.69 points to 1,849.37. The NASDAQ jumped 30.39 points to 4,213.41
Twitter and Apple were both up in early trading.
Bank of America boosted investor confidence by reporting better-than-expected earnings and revenue for the fourth quarter. The report followed solid earnings figures Tuesday fromJPMorgan and Wells Fargo.
Shares of Bank of America rose on the news, as did major banks that have yet to report such as Goldman Sachs and Citigroup
The financial sector is expected to have the best profit growth in the fourth quarter, according to FactSet Research. Overall, earnings for the companies in the S&P 500 are expected to be up 6.1% versus the fourth quarter of last year.
General Motors shares fell even though the automaker announced on Tuesday that it will pay its first dividend since 2008.
The stock was down because the company said Wednesday morning that it expects 2014 profit margins to be similar to last year and that restructuring costs for fixing problems in Europe are expected to be about $1.1 billion U.S.
The automaker also predicted most growth globally for the industry this year.
But shares of electric automaker Tesla Motors surged again after CEO Elon Musk told CNN late Tuesday that the company is on track to produce a cheaper, mass-market car in three years and still plans to offer a full-size pickup similar to the Ford F-150 in four to five years.
Shares of 3D printer maker ExOne fell sharply after it warned late Tuesday that revenue would be far below its earlier forecasts.
The warning follows disappointing guidance from 3D printer maker Stratasys earlier in the day. Fellow 3D printer companies 3D Systems and Voxeljet were down in early trading as well.
In economic news, the U.S. government said producer prices increased 0.4% in December. Manufacturing activity in the New York area expanded at a rapid pace in January, according to the Federal Reserve Bank of New York.
At 2:00 p.m. ET, the Federal Reserve will release the latest edition of its Beige Book report, a collection of data on regional economies.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.89% from Tuesday’s 2.87%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.59 to $94.18 U.S. a barrel.
Gold prices sank $5.60 to $1,239.80 U.S. an ounce.
