Markets in Toronto clung tenaciously to morning gains by noon ET on Tuesday, continuing to get support from Monday's U.S. Federal Reserve assertion of its willingness to keep on buttressing the U.S. economy.
The S&P/TSX composite index remained ahead 11.42 points midday to 14,346.73, off its highs of the morning.
The Canadian dollar added 0.21 cents at 90.70 cents U.S.
Financials were up slightly. Royal Bank of Canada climbed 0.3% to
$73.14, and Bank of Montreal gained 0.4% to $74.25.
Industrial shares gained ground with Air Canada jumping 3.8% to $5.74, and Bombardier adding 1.2% to $4.16.
The health-care sector advanced, supported by a 2% rise in Valeant Pharmaceuticals International to $148.35.
On the economic scene, Statistics Canada’s industrial product price index rose 1% in February, due to higher energy and petroleum prices, while its raw materials price index moved 5.7% higher in the same month, led by crude energy products.
ON BAYSTREET
The TSX Venture Exchange picked up 7.43 points to 1,001.99
The 14 Toronto subgroups were split between gainers and losers. Consumer discretionary stocks enjoyed a surge of 1%, while industrials were 0.7% stronger, and gold hiked 0.5%.
The seven laggards were weighed mostly by materials and real-estate, each skidding 0.5%, and energy, 0.3% less energetic.
ON WALLSTREET
After a bumpy start to the year, investors kicked off the second quarter with a spring in their step.
The Dow Jones Industrial Average gained 43.01 points to 16,500.67. The NASDAQ vaulted 43.79 points to 4,242.78
The S&P 500, which gained 1.5% in the first three months of the year, passed its all-time high of 1,883.97 by going to 1,884.64 mid-morning. The index now sits at 1,878.39, up 6.05 points from Monday’s close.
The auto industry will also be in focus, with monthly sales reports due from the top car makers throughout the day.
General Motors, which delayed the release of its sales figures because of a technical glitch, announced another recall Monday and set aside more money to cover the costs. The stock was up over 1% in early trading.
GM has been criticized for how it handled a different recall due to faulty ignition switches, linked to the deaths of 13 people. CEO Mary Barra will testify before Congress on Tuesday and Wednesday about the problems.
GM shares have slumped more than 10% this year, compared with a gain of about 3% for its crosstown rival Ford. Shares of Ford were higher Tuesday after the automaker reported better than expected March sales.
Caterpillar shares were also under pressure after a report claimed it avoided $2.4 billion U.S. in taxes. Company executives will defend their practices at a U.S. Senate hearing today.
Shares of Intuitive Surgical Group soared after the Food and Drug Administration approved the biotech's "da Vinci Xi" technology for minimally invasive surgery.
Casino companies were on the move following reports that gambling revenue in Macau surged 13% in March. Shares of Las Vegas Sands, MGM Resorts and Wynn Resorts all gained ground.
If history is any guide, Tuesday's gains could set the tone for the rest of the month. Stocks have returned 1.7% on average in the month of April over the past 40 years, making it the top performing month of the year, according to Schaeffer's Investment Research.
In economic news, a report on U.S. manufacturing this morning is flat, in line with expectations. Investors have been looking for clues on the health of the economy after Federal Reserve chief Janet Yellen said Monday that the central bank's repair job was not yet finished.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.76% from Monday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.33 to $100.25 U.S. a barrel.
Gold prices dipped $3.10 to $1,280.70 U.S. an ounce.
