The Toronto stock market registered a modest advance Monday after commodity prices got a lift from reports showing solid U.S. employment growth and continued expansion of the service sector.
The S&P/TSX Composite Index picked up 35.29 points on the day to close at 12,186.35
The TSX energy sector rose Suncor Energy gained 90 cents to $35.22 while Canadian Natural Resources improved $1.66 to $79.89.
May copper added five cents to $3.63 U.S. a pound. Among base metals stocks, Teck Resources advanced 80 cents to $46.20 and Labrador Iron Mines Holdings gained 39 cents to $7.52.
Gold issues were led by Kinross Gold Corp. was ahead 15 cents to $17.89.
Outside the commodity sectors, TSX performance was held back by the financial component, as TD Bank shed $1.19 to $73.91 while CIBC was down $1.22 to $73.45.
Tech sector heavyweight Research In Motion Ltd. was also a drag, down $1.19 to $67.86. The stock has lost ground after handing in a disappointing earnings report last Wednesday.
In corporate news, Magna Seating, an operating group of Canadian auto parts giant Magna International Inc. and U.S.-based supply manager Hollingsworth Logistics, have formed a joint venture to supply German carmaker Volkswagen with seat systems for its new car line.
Financial terms of the partnership were not revealed Monday and Magna shares eased 18 cents to $63.19.
Agnico-Eagle Mines Ltd. plans to build a larger-than-previously-planned operation at the Meliadine gold project in Nunavut, which the expanding global gold miner hopes to acquire in a $648-million friendly purchase of the development’s current owner. Agnico shares rose 29 cents to $58.37.
Fronteer Development Group Inc. said a $2.7-million drill program is planned for this year at Halilaga, a copper and gold deposit in northwestern Turkey. The project is a joint venture between Fronteer and a subsidiary of Teck Resources which owns 60% and is the project operator.
Fronteer shares climbed 36 cents to $5.85.
Bear Lake Gold Ltd. shares surged seven cents or 41.2% to 24 cents after it announced Monday it has reached an agreement in principle to settle a class action started in Ontario against the company, its directors and a number of current and former officers.
The Canadian dollar continued its push toward parity with its American counterpart, gaining 0.86 cents to 99.79 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups stretched higher Monday. Energy was the champion, powering 1.8% higher, followed by metals and mining stocks, ahead 1%, and industrials, gaining 0.5%.
The laggards were financials, off 0.6%, and information technology, down 0.2%.
The TSX Venture Exchange advanced 28.92 points to 1,631.46, while the Nasdaq Canada index gave back 2.65 points to 761.83.
ON WALLSTREET
In New York, stocks rallied Monday, with the Dow edging closer to 11,000, as investors returning from a long weekend welcomed last week's jobs report, the morning's strong housing market report and the launch of Apple's iPad device.
The Dow Jones industrial average added 46.48 points to 10,973.55. The S&P 500 tacked on 9.34 points to 1,187.44. The Nasdaq grew 26.95 points to 2,429.53. All three indexes ended at new 18-month highs.
The Dow last crossed 11,000 during the session on Sept. 29, 2008, when it touched 11,139.94. It last closed above 11,000 on Sept. 26, 2008, ending at 11,143.13.
Stocks gained last week, rising for the sixth of seven weeks. But markets were closed for Good Friday, making Monday the first time investors were able to react to Friday's big jobs report from the Department of Labor.
Monday also was the first chance for investors to react to the strong sales for Apple's iPad tablet computer, which launched Saturday amid much enthusiasm.
There were also positive reports on housing and on the services sector.
The tech leader said it sold 300,000 of its iPad tablet computers on Saturday and that users downloaded over one million apps from the company's App store and over 250,000 ebooks from its iBookstore. Shares of Apple gained 1% Monday.
Economically speaking, activity in the service sector of the U.S. economy improved markedly in March, indicating that the recovery is broadening out, according to a survey of companies released Monday by the Institute for Supply Management.
The ISM non-manufacturing index rose to 55.4% from 53.0% in February.
The gain was stronger than expected. Economists surveyed by MarketWatch forecast the ISM non-manufacturing index to rise to 54%. Readings above 50% in the ISM diffusion index indicate that activity at more firms is expanding rather than contracting.
Also, contracts for the sale of existing homes rose sharply in February, possibly indicating a second surge of home sales due to the extended homebuyer tax credit, a widely watched industry report said Monday.
In the single-biggest monthly rise since October 2001, the National Association of Realtors' (NAR) Pending Home Sales Index rose 8.2% in February to 97.6 from a downwardly revised 90.2 in January. The increase surprised economists surveyed by Briefing.com, who were expecting a 1% decrease.
It was also a 17% improvement over last year, when the index sat at 83.2 in February
Treasury prices tumbled, raising the yield on the 10-year note to 4% from 3.86% Thursday. Treasury prices and yields move in opposite directions.
In the afternoon, the government saw a strong response to its auction of $8 billion U.S. in 10-year Treasury Inflation Protected Securities (TIPS), with bidders offering to buy 3.43 times the amount of debt sold, up from the recent average. Indirect bidders, which include foreign central banks, bought 37.5% of the sale.
The price of a barrel of oil gained $1.84 to $86.71 U.S.
Gold prices gained six dollars to $1,132 U.S. an ounce.
