The Toronto stock market got off to a roaring start Tuesday, as better-than-expected revenue figures from resource giant Alcoa Inc. helped investors look past signs of a slowing Chinese economy.
The S&P/TSX Composite powered ahead 129.07 points, or 1.1%, in the first hour of trading to 12,325.79
The Canadian dollar gathered 0.62 cents to 98.32 cents U.S.
Commodity prices advanced with Suncor Energy improving by 60 cents to $32.51.
Shares in Nexen Inc. advanced $1.53 to $18.60 as the oil and gas giant announced the departures of two top executives, including president and CEO Marvin Romanow. Nexen also announced that Gary Nieuwenburg, executive vice-president of Canada, was also leaving the company effective immediately.
Nexen had reported that its net profits were cut by nearly two thirds on lower production and falling sales in the quarter ended Sept. 30.
The base metals sector climbed as copper prices were also higher as the March contract climbed nine cents to $3.50 U.S. a pound. Teck Resources rose $1.18 to $38.83.
Gold stocks like Goldcorp Inc. climbed 78 cents to $46.58.
The financials sector also provided lift, with Royal Bank up 36 cents to $52.60.
In Canadian earnings news, quarterly profits at Corus Entertainment Inc. came in at $91.2 million, or 61 cents per share, beating average analyst estimates of 59 cents per share, according to a survey by Thomson Reuters.
The results marked an increase from $90.7 million, or 58 cents per share, a year earlier.
Revenues rose 7% to $236.9 million from $222.2 million thanks to double-digit growth in ad sales from its female-centric TV channels.
Corus shares were up 46 cents to $21.80.
Shares in lululemon athletica inc. surged almost 14% to $62.32 after the yoga-inspired retailer raised its profit and revenue estimates. It also expects diluted earnings will be about seven cents per share higher than previously estimated, in a range of 47 cents to 49 cents per share.
TransCanada Corp. has stepped up its publicity campaign for the politically charged Keystone XL pipeline. It has released a detailed breakdown of where the $7-billion project would create 20,000 jobs in the United States, if approved. Its shares were off seven cents to $43.46.
Economically speaking, Canadian Mortgage and Housing Corporation said this morning that housing starts were up more than 14,000 to 200,000 units in December from the month before.
ON BAYSTREET
The TSX Venture Exchange added 13.20 points to 1,540.69, while the Nasdaq Canada index hiked 7.35 points to 390.04
All but one of the 14 Toronto subgroups started the day in the green. Metals and mining stocks surged 3%, global base metals 2.9% and health-care 2.5%.
The lone laggard was utilities, off 0.3%.
ON WALLSTREET
In New York, stocks advanced Tuesday, on the back of gain in global markets, as investors grew optimistic following upbeat comments about Europe and a decent start to quarterly corporate results
The Dow Jones Industrials were up 91.96 points soon after the opening bell to 12,484.70
The S&P 500 gained 14.97 points at 1,295.67, while the Nasdaq Composite picked up 29.58 points to 2,706.14.
The gains came as investors found comfort in Fitch Rating's comments about Europe being on the right path toward solving its debt problems.
On the sidelines of the presentation, Fitch officials also reiterated the agency's December stance that it doesn't plan to downgrade AAA-rated France this year.
Fitch's head of ratings also indicated there's a "significant chance" of a downgrade for Italy. The ratings agency plans to make a decision on all the European countries it currently has on negative watch by the end of the month.
A solid start to U.S. quarterly results also brightened the mood. Late Monday, investors brushed of Dow component Alcoa's fourth-quarter loss as the company topped sales estimates and issued an upbeat outlook for aluminum demand in 2012.
While no major corporate reports are scheduled for Tuesday, the rest of the week will bring reports from Lennar and JPMorgan Chase
Overall, earnings for companies in the S&P 500 are expected to be up 7.5% in the final three months of 2011 versus the same period in 2010, according to research from S&P Capital IQ.
Stocks managed to eke out gains Monday as investors remained on edge about Europe's ongoing crisis, while bracing for corporate earnings.
Bank stocks moved broadly higher, with Citigroup, Goldman Sachs, JPMorgan Chase and Bank of America rising between 3% and 4%.
Shares of Tiffany slid after the luxury retailer cut its outlook for the year, blaming weak holiday sales in the United States and Europe.
On the upside, lululemon athletica's stock jumped after the apparel maker raised its fourth-quarter earnings guidance.
Liz Claiborne shares tumbled after the apparel company lowered its 2012 outlook and announced the departure of its chief financial officer, Andrew Warren. Warren is leaving the company to work as CFO at Discovery Communications.
Liz Claiborne is changing its name to Fifth & Pacific Companies, and will trade under the ticker symbol FNP starting in May. The company sold its namesake brand to J.C. Penney in October.
Shares of GlaxoSmithKline fell following reports that the drugmaker was trying to sell the remainder of its over-the-counter brands as soon as possible. Last month, Glaxo sold brands, including Beano and Ecotrin, to Comet and Pediacare maker Prestige Brands Holdings for $660 million U.S.
On the economic front, the U.S. Census Bureau will release data on wholesale inventories for the month of November on Tuesday morning. Analysts surveyed by Briefing.com expect inventories to have increased by 0.6% in November, after expanding by 1.6% in October.
Treasury prices for the 10-year note faded, pushing yields up to 1.98% from Monday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil for February delivery spiked $1.45 to $102.90 U.S. a barrel.
Gold futures for February delivery gained $29.40 to $1,637.50 U.S. an ounce.
