The Toronto stock market was sharply higher Tuesday afternoon as a strong rally in oil prices extended to a third day, with cutbacks by major producers raising hopes that crude prices have hit a bottom and some recovery may be in sight.
The S&P/TSX composite index gained 162.41 points, or 1.1%, to conclude Tuesday at 15,062.88
The Canadian dollar gained 1.06 cents to 80.63 cents U.S.
The TSX energy sector was ahead. A major gainer was Canadian Oil Sands, which jumped $2.03, or 21.5%, to $11.48. Its stock has soared 60% since Thursday after TD Securities raised its price target.
There were also reports COS could become a takeover target by one of its partners in Syncrude Canada Ltd., which is a joint venture between seven energy companies.
The base metals sector jumped as March copper soared seven cents to $2.56 U.S. a pound. Teck Resources soared $1.27, or 7.4%, to $18.37.
Financials also lent key support, as TD grew $1.47, or 2.9%, to $52.80.
The gold sector was the major decliner, as Barrick Gold settled 47 cents, or 2.9%, to $15.74.
In earnings news, WestJet Airlines Ltd. was cleared for takeoff, posting a record fourth-quarter profit of $90.7 million or 70 cents a share, in line with estimates.
That was up 34% from $67.8 million a year ago. Revenue was $994.4 million, up 7.3% from a year ago and also in line with estimates and the carrier is also hiking its dividend by 17%. WestJet shares drifted 80 cents, or 2.5%, lower to $31.10.
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 7.07 points to 692.32
Eight of the 14 Toronto subgroups were lower, with gold dimming 3.8%, consumer staples weaker by 2.2%, and materials wilting 1.4%.
The half-dozen gainers were led by metals and mining, mightier by 6.6%, global base metals, up 4.4%. and energy, better by 4.2%.
ON WALLSTREET
U.S. stocks rallied on Tuesday to close up more than 1% higher in a second consecutive day of gains, boosted by a surge in oil prices and alleviation of concerns in the euro-zone.
The Dow Jones Industrials ballooned 305.36 points, or 1.8%, to 17,666.40. All blue chips advanced, led by Caterpillar's nearly 4% gain. Exxon Mobil and Chevron followed, each rising nearly 3% or more.
The S&P 500 soared 29.18 points to 2,050.03. The energy sector led advancers on the S&P 500 for four straight days of gains.
The NASDAQ index added 51.05 points to 4,727.74, even with Apple in the red for much of the day. Biotech declines also put pressure on the S&P.
Still, with Monday's and today's gains, the three indices each regained about 70% or more of January losses.
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.
Things are set to heat up later in the day with results from Disney, as well as Gilead Sciences.
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 fell sharply, boosting yields to 1.78% from Monday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices jumped $2.81 per barrel to $52.38 U.S.
Gold prices faded $14.70 an ounce to $1,262.20 U.S.
