The Toronto stock market achieved its first close above 14,000 in about two and a half years on Wednesday in large part to strong gains in the tech, energy and financial sectors.
The S&P/TSX composite index ended Wednesday 129.83 points higher to 14,059.18
The Canadian dollar gained 0.49 cents to 101.5 cents U.S.
CIBC gained $1.11 to $81.68 while Manulife Financial advanced 48 cents to $19.17.
The tech sector was also supportive with Research In Motion Ltd. up $2.77 to $67.32 after Citigroup upgraded the stock to "buy" from "sell."
The energy sector advanced as the March crude contract on the New York Mercantile Exchange climbed 72 cents to $85.04 U.S. a barrel after the U.S. Energy Information Administration said crude inventories rose 900,000 barrels last week. That was far less than the 2.8 million barrel rise that analysts expected and suggested demand may be improving.
Prices also gained momentum after Israel’s foreign minister claimed Iran was about to send two warships through the Suez Canal for the first time in years, calling it a "provocation," but offering no evidence. The Egyptian authority that runs the canal denies it.
Suncor Energy gained $1.42 to $43.28 while Canadian Natural Resources improved by $2.08 to $46.76.
Talisman Energy Inc. says its fourth-quarter loss widened to $304 million as it booked higher stock-based compensation and taxes. Its shares lost eight cents to $22.77.
Equinox Minerals gained 17 cents to $6.74 while First Quantum climbed $2.05 to $130.20.
Among gold sector, Kinross Gold moved ahead 15 cents to $16.64.
In other earnings news, Rogers Communications Inc. reported that adjusted profits were $359 million, or 64 cents per share, just short of analyst expectations of 65 cents per share, according to a survey by Thomson Reuters. Revenue was $3.15 billion, an increase from $3.06 billion, and slightly below average expectations of $3.17 billion. It also announced a dividend hike and its shares advanced 77 cents to $35.49.
In other corporate news, CGI Group Inc. said it has been selected by SaskPower to provide round-the-clock IT service support for its 2,800 employees through 2015. No value was disclosed for the contract that will be delivered by CGI’s Regina-based operations. Its shares were up 53 cents to $19.99.
On the economic front, Statistics Canada reported this morning that manufacturing sales advanced 0.4% to $45.4 billion in December, powered by gains in the primary metal and petroleum and coal product industries were offset by a decline in aerospace product and parts.
ON BAYSTREET
The TSX Venture Exchange was up 4.84 points to 2,399.42, while the Nasdaq Canada index pulled ahead 19.76 points to 828.07.
In Toronto, all but one of the 14 subgroups were positive Wednesday. Energy stocks led the parade, up 2%, with information technology gaining 1.1% and industrials 1% stronger.
Only consumer discretionaries missed out on the party, sliding 0.2%.
ON WALLSTREET
In New York, stocks finished at the highest level in more than two years Wednesday, propelled by a $20 billion merger in the pharmaceutical sector and a batch of solid corporate earnings.
The Dow Jones industrial average gained 62 points, or 0.5%, to finish at 12,288, the highest level since June 2008. JPMorgan Chase and Hewlett Packard led the advance.
The S&P 500 added eight points, or 0.6%, to end at 1,336, more than doubling its financial meltdown low of 666.79 on March 6, 2009. That uptick also put the index at its highest level since June 2008.
Family Dollar rallied 9.3% after the discount retailer said it received an unsolicited offer from Nelson Peltz's Trian Group, making it the biggest gainer on the S&P 500.
The Nasdaq rose 21 points, or 0.8%, led by a 12% jump in shares of Dell , which delivered a stellar fourth-quarter profit. Comcast was also a strong performer on the tech-heavy index, with the cable TV provider jumping 5% after reporting better-than-expected quarterly results. The Nasdaq finished at its highest level since November 2007.
Investors were also cheering the latest big M&A deal. French drugmaker Sanofi-aventis agreed to buy Genzyme, a Massachusetts-based biotech company, for $20.1 billion in cash. The deal was announced before the opening bell. Shares of both Sanofi and Genzyme rose more than 1%.
Borders Group, the nation's second largest book store chain, filed for Chapter 11 bankruptcy and announced plans to close 30% of its stores.
The filing was not a surprise. Shares of the company have plunged almost 75% in 2011 in anticipation of the news. Borders has been struggling with declining sales since the recession took hold in 2008. It has also been hurt by growing competition from online book sellers.
Economically speaking, a government report showed the number of housing starts rose more than expected in January, while permits for new construction were weaker than forecast.
Housing starts rose 14% to an annual rate of 596,000 units last month, while building permits, considered a leading indicator of activity, fell 10% to an annual rate of 562,000 in January.
The government's Producer Price Index, a measure of wholesale inflation, rose 0.8% in January. The increase was slightly larger than expected.
Minutes from the most recent meeting of the Federal Reserve released Wednesday showed that policymakers anticipate a bigger bump in economic growth for 2011 than they thought just a few months ago. But the Fed said the acceleration in growth will mainly be limited to the short term, as growth estimates for 2012 and 2013 were only slightly adjusted.
The price on the benchmark 10-year U.S. Treasury remained static at Tuesday’s 3.62%.
Oil for February delivery regained 69 cents to $85.01 U.S. a barrel.
Gold futures for April delivery rose a dollar to $1,375.10 U.S. an ounce.
