The Toronto stock market was higher Tuesday as a weak U.S. dollar helped lift commodity prices while investors also took in a decision by the Bank of Canada to leave its key interest rate unchanged at 1%.
The S&P/TSX composite index ended the day ahead 119.09 points to 13,559.20
The Canadian dollar was down 0.54 of a cent at 100.79 cents U.S. as the central bank also raised its 2011 growth forecast to 2.4% from 2.3%
Meanwhile, the base metals sector gained ground as copper prices headed higher with the March contract on the New York Mercantile Exchange up two cents at $4.43 U.S. a pound. Teck Resources climbed $1.86 to $63.84 while Quadra FNX Mining Ltd. was up 33 cents at $17.34.
Gold stocks also advanced as Barrick Gold Corp. rose 93 cents to $47.81 while Goldcorp Inc. gained 13 cents to $40.57.
Among energy plays, Suncor Energy was ahead 60 cents at $38.79 while Canadian Natural Resources advanced 74 cents to $42.40.
Encana Corp. said its U.S. subsidiary has agreed to sell its Fort Lupton natural gas processing plant in Colorado for about $303 million U.S. The Calgary-based natural gas giant said Western Gas Partners LP would acquire the plant, which has production of about 84 million cubic feet per day. Encana Corp. gained 95 cents to $31.88.
TD Ameritrade Holding Corp. says it had net income of $145 million U.S. or 25 cents U.S. per share in its first quarter of fiscal 2011. That’s up from $136.2 million U.S. or 23 cents U.S. per share a year earlier. TD Bank Financial Group owns 40% of Ameritrade and it said the results will contribute $48 million to first quarter net income. TD shares were ahead 42 cents at $76.52.
Brookfield Asset Management Inc. shares ran up 97 cents to $33.28 after it announced it has signed a deal to increase its stake in U.S. mall operator General Growth Properties Inc. in an agreement valued at $1.7 billion in shares and cash. The deal with Fairholme Fund increases Brookfield stake in General Growth from 27% to 38%
Gran Tierra Energy Inc. is seeking to expand its presence in South America with a $195-million U.S. friendly takeover of Petrolifera Petroleum Ltd. Gran Tierra shares were up a penny at $8.30.
ON BAYSTREET
The TSX Venture Exchange tacked on 17.06 points to 2,292.51, while the Nasdaq Canada index picked up 8.96 points to 799.53
In Toronto, all but one of the 14 subgroups were higher to close Tuesday. Metals and mining ticked upward 2.2%, while global base metals advanced 2.2%, and materials were better by 1.8%.
The lone loser was the telecoms group, closing 0.03% lower.
ON WALLSTREET
In New York, stocks showed surprising resilience Tuesday, with gains from Boeing and other industrial names offsetting weakness from Citigroup and Apple.
The Dow Jones Industrials gained 50.35 points to 11,837.90
The S&P 500 nipped 1.78 points higher to 1,293.47. The Nasdaq Composite Index improved 10.55 points to 2,765.85
Disappointing earnings from Citigroup dragged the banking sector lower, with the KBW banking index sliding 1%. Shares of Apple remained under pressure amid worries about CEO Steve Jobs' medical leave.
Verizon, which announced last week that it will begin selling Apple's iPhone early next month, was the Dow's weakest component. Shares were down 2.4%.
But Boeing outshined the losers, coming in as the best performer on the Dow. Shares of Boeing rose 3% after the aeronautics company said it expects to deliver its 787 Dreamliner in the third quarter of 2011. The 787, which has been plagued by delays, was originally slated for delivery in the first quarter.
In addition to Boeing, industrial stocks Alcoa and Caterpillar were both up about 2%, reflecting the bullish outlook many investors have for economic growth in 2011.
Shares of Apple fell about 2% after the company announced Monday that CEO and co-founder Jobs will take another leave of absence because of health problems.
Jobs' leave of absence comes two years after the Apple CEO took a six-month sabbatical, during which he received a liver transplant. While the news may weigh on Apple shares in the coming days, the slump isn't likely to last long, said Tom Winmill, portfolio manager at Midas Funds.
Apple will release quarterly results after the bell, and the maker of computers and personal electronics is expected to post a profit of $5.39 U.S. a share on $24.4 billion U.S. in revenue.
Analysts and investors are also eagerly awaiting details about how many iPads Apple sold during the tablet's first holiday season.
IBM is the other big tech company slated to report quarterly results after the closing bell Tuesday, with analysts predicting the company earned $4.08 per share.
Citigroup posted quarterly results before the opening bell that missed expectations. The bank reported a profit of $1.3 billion U.S., or four cents per share, on revenue of $18.4 billion U.S
While Citi's quarterly earnings disappointed, many other companies are on deck to report results this week -- and Winmill said he is bullish about the quarter.
Rival JPMorgan Chase laid the foundation for overall strength on Friday when it reported a 47% jump in fourth-quarter earnings to $4.8 billion U.S., or $1.12 per share. Goldman Sachs is due to report Wednesday morning.
Delta reported quarterly earnings that missed forecasts, posting earnings of 19 cents U.S. per share -- compared to the 24 cents U.S. expected by analysts. Shares of the airline company dropped 5.6%.
Outside the earnings arena, shares of commercial banking firm Comerica tumbled nearly 8% Tuesday, after the company agreed to acquire Sterling Bancshares in a $1-billion U.S. all-stock deal.
The Federal Communications Commission approved the merger of Comcast, of the country's largest cable operator, and broadcasting company NBC Universal.
On the economic front, the New York Fed released its Empire Manufacturing Survey before the market open. The reading ticked up to 11.92 in January, which was in line with expectations.
Separately, the National Association of Homebuilder's Housing Market Index for January came in unchanged at 16, as expected.
Prices on the benchmark 10-year U.S. Treasury lost ground, raising the yield to 3.36% from Friday’s 3.33%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 33 cents to $91.35 U.S. a barrel
Gold futures for February delivery added $7.70 to settle at $1,368.20 U.S. an ounce.
