Equity markets in Toronto had a spring in their step to begin Tuesday’s session, as a floor appears to have been reached for energy prices, which began a steep climb upward.
The S&P/TSX composite index began Tuesday up 179.22 points, or 1.2%, at 15,079.69
The Canadian dollar gained 0.35 cents to 79.92 cents U.S.
CIBC raised the rating on Chorus Aviation to sector perform from underperform. Chorus shares took on nine cents, or 1.8%, to $5.11.
Dundee Capital cut the rating on Allied Properties REIT to neutral from buy. Allied units subsided 45 cents, to 1.1%, to $39.25.
Canaccord Genuity raised the target price on Onex Corp. to $81.00 from $72.00. Onex gained 62 cents a share to $71.85.
On the economic slate, Statistics Canada reported that its Industrial Product Price Index decreased 1.6% in December, mostly due to lower prices for energy and petroleum products.
The Raw Materials Price Index declined 7.6% in December, mainly because of lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange added 4.72 points to 689.97
The 14 Toronto subgroups were evenly divided between gainers and losers, energy stocks leading the former group, up 4.5%, metals and mining stocks ahead 4.3%, and global base metals gaining 3.2%.
The seven laggards were weighed mostly by gold, losing 2.8% of its lustre, consumer staples, off 0.9%, and materials, down 0.7%.
ON WALLSTREET
U.S. stocks traded sharply higher on Tuesday on continued momentum from strengthening oil prices and encouraging developments in the euro-zone.
The Dow Jones Industrials spiked 179.72 points, or 1%, to 17,540.70, with Caterpillar in the lead, followed by Exxon Mobil and Chevron, each rising more than 2% each.
The S&P 500 gained 16 points to 2,036.85. The NASDAQ index added 22.57 points to 4,699.26.
Reporting before the bell, UPS matched estimates with adjusted quarterly profit of $1.25 U.S. per share, while revenues were above forecasts. However, the company said its results were below its own expectations, and it also forecast full-year results below Street forecasts.
It plans to address these issues with cost and revenue actions, although UPS adds that customers were "delighted" with its service during the holiday season.
BP posted better-than-expected replacement cost profit of $2.2 billion U.S. for the fourth quarter, despite taking a $3.6-billion U.S. impairment cost. In a television interview, CEO Bob Dudley warned that oil prices could remain as low as $50 U.S. per barrel "for some time."
Factory orders for December posted a greater-than-expected decline of 3.4%. Analysts expected a decline for the month, especially with Monday's weaker ISM manufacturing numbers.
Auto sales come out throughout the day, and analysts are encouraged by the initial reports.
Greece's Finance Minister Yanis Varoufakis unveiled proposals on Monday to end the confrontation with its creditors by swapping outstanding debt for new growth-linked bonds, the Financial Times reported. On Tuesday, Greek Finance Minister Yanis Varoufakis meets with his Italian counterpart in Rome.
Prices for 10-year U.S. Treasuries sagged, boosting yields to 1.75% from Monday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.45 per barrel to $51.02 U.S.
Gold prices faded $11.30 an ounce to $1,265.60 U.S.
