The Toronto stock market held its positive stance on Tuesday afternoon as commodity prices strengthened and traders relaxed concerns that some sectors may be overvalued.
The S&P/TSX composite index headed higher 102.12 points to end Tuesday at 14,372.45
The benchmark index, which is up about 5% in 2014, has outperformed Wall Street's S&P 500 index so far this year.
The Canadian dollar surged 0.41 cents at 91.56 cents U.S., due in part to the Quebec Liberal Party sweeping back into power following Monday’s provincial election.
Gold stocks were stronger as the price of bullion climbed to levels it hasn't reached for two weeks, pushed higher by further unrest in the Ukraine. Barrick Gold rose 39 cents to $20.53 while Goldcorp lifted 42 cents to $27.58.
In the energy sector, Suncor added 83 cents to $39.89, while Canadian Natural Resources powered up 44 cents to $43.74
May copper moved ahead 0.9 of a cent to $3.05 U.S. a pound. Teck Resources gained 92 cents to $25.64.
Earnings season is about to kick off throughout North America. Canadian companies like Dollarama Inc. and Cogeco Inc. are expected to report on Wednesday. Dollarama shares dropped $1.10 to $85.55, while Cogeco Inc. fell 22 cents to $58.06.
In the economic realm, Statistics Canada reported that municipalities issued building permits worth $6.1 billion in February, down 11.6% from January, following an 8.1% gain the previous month. This decrease was mainly driven by lower construction intentions for multi-family dwellings throughout the country.
What’s more, Canada Mortgage and Housing Corporation reported this morning that housing starts in Canada were trending at 184,476 units in March compared to 191,126 in February – a drop of 3.5%.
ON BAYSTREET
The TSX Venture Exchange eked higher by 1.82 points to 998.79
All but one of the 14 Toronto subgroups were higher on the day, gold leading the way with a 2.3% gain, while metals and mining jumped 1.8%, and energy charged ahead 1.5%.
Only telecoms missed the party, and only 0.01% at that.
ON WALLSTREET
After a brutal selloff over the past few days, stocks bounced back Tuesday -- modestly.
The Dow Jones Industrial Average advanced 10.27 points to 16,256.14. The S&P 500 forged ahead 6.92 points to 1,851.96. The NASDAQ remained positive 33.24 points to 4,112.99
At yesterday's closing bell, all three major U.S. stock indexes were negative for the year, but trading today has pushed the S&P 500 into positive territory. The Dow and NASDAQ are still down over 1.5% each.
Investors have been worried about stock valuations ahead of what is expected to be lackluster quarter for corporate earnings. The technology sector has been hit particularly hard, but investors were dipping a toe back into the sector after three days of heavy selling.
Shares of Facebook, Netflix and Amazon all rebounded. Yelp, the restaurant and business review site, is also gaining ground despite struggling this year.
But the broader market's gains were held back by weakness in the health-care sector. Shares of drug-makers Mylan, Gilead Sciences, Forest Laboratories were all down.
In corporate news today, Alcoa will report first quarter results after the closing bell, the first major company to do so.
Bank stocks were under pressure as investors await results from JPMorgan and Wells Fargo later this week.
Goldman Sachs, which reports results next week, was the hardest hit. A report in the Wall Street Journal suggested that Goldman's results could disappoint as the bank's trading revenue has declined.
The energy sector was a bright spot. First Solar was the top performing S&P 500 stock. Shares of coal mining company Peabody Energy were strong as well. Joy Global, which sells heavy equipment to the coal mining industry, was another top performer.
Coal companies in general were strong, including Walter Energy, Alpha Natural Resources and Arch Coal
Shares of Dr Pepper Snapple Group were down sharply after analysts at Wells Fargo downgraded the stock.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.68% from Monday’s 2.70%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.06 to $102.60 U.S. a barrel.
Gold prices hiked $11.40 to $1,309.70 U.S. an ounce.
