Canadian stocks rose for the first time in six days as oil and metal prices gained after Japan pledged to buy European bonds to ease the sovereign-debt crisis.
The S&P/TSX composite index closed Tuesday up 155.73 points, or 1.2%, to 13,401.05, its first positive session of 2011.
The Canadian dollar benefited from higher prices for oil and metals, up 0.32 of a cent to 100.99 cents U.S.
The S&P/TSX fell 1.5% this month through yesterday as gold and copper futures dropped at least 3.3%. Gold declined as reports of expansion in U.S. manufacturing and services reduced demand for precious metals, while copper retreated on concerns China might raise interest rates.
Suncor gained 1.6% to $37.43. Pacific Rubiales Energy Corp., which operates Colombia’s largest oil field, rallied 7.4% to $33.79 after saying its crude output will increase 73% by the end of 2014.
Nexen Inc., an oil and gas producer with operations on five continents, jumped 5.5% to $23.01 after Menno Hulshof, an analyst at Toronto-Dominion Bank, raised his rating on the shares to "buy" from "hold."
Copper, gold and silver advanced after Deutsche Bank AG raised its 2012 price estimates for the metals. Canadian Imperial Bank of Commerce also boosted its price forecasts for base metals.
Teck Resources Ltd., Canada’s largest base-metals and coal producer, climbed for the first time in a week, increasing 4.3% to $63.11. Jorge M. Beristain, an analyst at Deutsche Bank, boosted his 12-month price estimate on Teck’s U.S. shares to $77 from $65. First Quantum Minerals Ltd., Canada’s second-biggest publicly traded copper producer, rallied 4.4% to $119.67.
Taseko soared 17.4%, the most in six months, to $5.87 after announcing the drilling results from its Aley Niobium Project in British Columbia. Niobium is used in steelmaking.
Goldcorp Inc., the world’s second-largest gold producer by market value, gained 1.6% to $43.36 after forecasting a 60% increase in gold production over five years.
Barrick Gold Corp., the world’s largest producer of the metal, advanced 1.5% to $49.44.
First Majestic Silver Corp., which operates in Mexico, surged 7.6% to $13.84 after announcing 2010 production that exceeded company forecasts by 9%
Royal Bank rallied 1.7% to $52.56 after one analyst told clients in a note that the company’s earnings will grow faster than those of its peers. Bank of Nova Scotia, Canada’s third-biggest lender by assets, rose 0.8% to $56.36.
Canada Mortgage and Housing Corp. reported that the seasonally adjusted annual rate of housing starts was 171,500 units in December, down from 198,200 units in November.
CMHC said the drop was due to the multiple starts segment, especially in Ontario.
ON BAYSTREET
The TSX Venture Exchange moved ahead 32.34 points to 2,265.74, while the Nasdaq Canada index ran up 11 points to 782.
In Toronto, all but one of the 14 subgroups were in the green on the day. Metals and mining led the festivities, up 3.1%, while energy gained 2%, and materials were 1.7% stronger.
The one laggard was health-care, down 0.2%.
ON WALLSTREET
In New York, stocks held onto gains Tuesday afternoon as investors' attention turned toward corporate earnings. Japan's pledge to buy euro-zone bonds helped ease European debt jitters and give underlying support to market sentiment.
The Dow Jones Industrials added 34.43 points to 11,671.90.
The S&P 500 picked up 4.73 points to 1,274.48. The Nasdaq Composite Index was higher by 9.03 points to 2,716.83
Dow component Alcoa kicked off the reporting period late Monday with better-than expected results. Shares of Alcoa slipped 1.1%, despite its positive earnings news the night before, amid worries about the aluminum producer's rising raw material supply costs.
Sears Holdings and Apollo Group were the big gainers on the S&P 500 and the Nasdaq. Sears' fourth-quarter and full-year outlook topped analysts' forecasts, while Apollo's quarterly results beat expectations.
Verizon said it will begin selling Apple's iPhone on Feb. 10, ending AT&T's four-year run as the smartphone's exclusive carrier. Shares of Verizon fell almost 2%, while shares of Apple edged down slightly.
Sears stock jumped 6% after the retailer's fourth-quarter outlook topped forecasts. Sears said it expects to earn between $3.39 and $4.12 U.S. per share for the quarter ending Jan. 29.
Analysts have been looking for earnings of $3.09 U.S. per share.
For the year, Sears expects to earn between $130 million and $210 million U.S., or between $1.16 and $1.88 U.S. per share.
Apollo Group's stock rose 14% after the for-profit educator posted fiscal first-quarter earnings that trounced Wall Street expectations despite a 42% drop in new student enrollment during the quarter.
Shares of Tiffany & Co. declined 1.1% after the jeweler and luxury goods retailer raised its outlook and posted an 11% rise in sales over the two-month holiday period.
Shares of Talbots sank 18% Tuesday after the women's retailer posted a 6% drop in same-store sales so far this quarter and lowered its outlook due to weak customer demand.
Lennar one of the nation's largest homebuilders, posted quarterly earnings per share of 17 cents U.S. before the opening bell. Analysts had forecast three cents U.S. Its stock rose nearly 8%.
AMD's stock dropped 8% after the chip maker announced the immediate resignation of CEO Dirk Meyer on Monday. The company named CFO Thomas Seifert as interim chief executive.
Shares of Supervalu tumbled 11% after the grocery store chain posted disappointing quarterly results and lowered its guidance for the year, which ends in February.
Economically speaking, a Commerce Department report showed that wholesale inventories fell 0.2% in November. Economists were expecting inventories to have risen 1.0% during the month, after jumping 1.7% in October.
The price on the benchmark 10-year U.S. Treasury sank, raising the yield to 3.34% from Monday’s 3.30%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained $1.99 to $91.24 U.S. a barrel
Gold futures for February delivery climbed $10.20 to settle at $1,384.30 U.S. an ounce.
