The Toronto stock market advanced 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 leaped ahead 131.81 points, or 1.1%, to greet noon at 12,328.53
The Canadian dollar gathered 0.72 cents to 98.43 cents U.S.
Traders also took in news that China’s import growth decelerated sharply in December in a new sign the world’s second-largest economy is slowing, in part because the government has been dealing with high inflation, particularly for food.
The customs agency said December imports rose 11.8% over a year ago, down from November’s 22.1% gain. Exports rose 13.4%, down only marginally from the previous month’s rate. The data raised hopes that Chinese central bankers will be loosen lending requirements.
The country’s politically sensitive global trade surplus widened to $16.5 billion U.S.
China has been a major prop in helping the global economy recover since the financial crisis of late 2008, driving up prices for oil and metals and commodity stocks on the resource-heavy TSX.
The TSX energy sector ran ahead while Suncor Energy improved 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.
Still in that vein, 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.
Among gold stocks, 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 seven per cent 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 how 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 12.26 points to 1,539.74, while the Nasdaq Canada index hiked 7.88 points to 390.57
All but one of the 14 Toronto subgroups remained in the green by lunch time. Metals and mining stocks surged 2.9%, health-care stocks were 2.5% more robust, and global base metals surged 2.4%.
The lone laggard was utilities, off 0.2%.
ON WALLSTREET
In New York, stocks advanced Tuesday, on the back of gains 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 91.88 points by noon ET to 12,484.60
The S&P 500 gained 12.51 points at 1,293.21, while the Nasdaq Composite picked up 27.13 points to 2,703.69.
The gains were led by financial stocks. Bank of America surged more than 4%, making it the best performer in the Dow. Morgan Stanley and Goldman Sachs were also up more than 4%, while Citigroup and JPMorgan Chase rose between 2% and 3%.
Tuesday's broad move higher 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 off 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.
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 drug maker 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 reported that wholesale inventories for the month of November rose 0.1%. Analysts surveyed by Briefing.com were expecting inventories to have increased by 0.6% in November, after expanding by 1.2% in October.
Treasury prices for the 10-year note faded, nudging yields up to 1.97% from Monday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil for February delivery spiked $1.54 to $102.85 U.S. a barrel.
Gold futures for February delivery gained $28.90 to $1,637 U.S. an ounce.
