TSX extends gains on upbeat U.S. report
February 03, 2010
The Toronto stock market closed higher for a second session Tuesday amid more encouraging news on the U.S. economy.
The S&P/TSX composite index advanced 90.79 points to 11,408.34 after the U.S. National Association of Realtors said its index of sale contracts rose 1 per cent in December, a sign sales could be stabilizing ahead of the spring home-buying season.
The news was reassuring to investors who watched the TSX lose 5.5 per cent during January on worries about the strength of an economic recovery. But analysts warned there is still plenty of nervousness about later this year.
"I think that we're approaching a critical juncture where the stimulus-led recovery is real but we know that as we get into the heart of 2010, when the bulk of fiscal stimulus has been spent, then that will be the real test," said Paul Taylor, chief investment officer at BMO Harris Private Banking. "The markets are going to be choppy through the next couple of quarters."
The Canadian dollar moved up 0.38 of a cent (U.S.) to 94.51 cents.
On the TSX, the tech sector was the biggest gainer, up 2.47 per cent with Research In Motion Ltd. climbing $1.49 (Canadian) to $69.55.
The industrials sector rose 2.14 per cent as Bombardier Inc. gained 32 cents, or 6.2 per cent, to $5.49.
The base metals sector was ahead 1.5 per cent as the March copper contract advanced half a cent to $3.09 (U.S.) a pound.
The financial sector was ahead 1.13 per cent with Royal Bank of Canada up 98 cents (Canadian) to $53.80.
The energy sector was ahead a slight 0.09 per cent even as the March crude contract on the New York Mercantile Exchange climbed $2.80 (U.S.) to $77.23 a barrel.
The group was weighed down by Suncor Energy Inc., which posted a fourth quarter 2009 profit of $457 million, or 29 cents per share. The results missed analyst estimates of 42 cents a share. Suncor shares fell $1.99 (Canadian) to $32.85.
The gold sector turned up 0.1 per cent as the April gold contract on the Nymex was up $13 (U.S.) to $1,118 an ounce.
The TSX Venture Exchange rose 7.13 points to 1,517.07.
In New York, the Dow Jones industrials gained 111.32 points to 10,296.85. The Nasdaq composite index rose 18.86 points to 2,190.06 and the S&P 500 index moved up 14.13 points to 1,103.32.
The Canadian Press
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