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Feb. 9, 2010 (Baystreet.ca) --
The Toronto stock market was well into positive territory Tuesday as investors hoped that European leaders will move to address worries about severe government debt issues on the continent.
The S&P/TSX Composite Index roared ahead 158.94 points, or 1.4 to 11,274.24
The base metals sector moved ahead as March copper added four cents to $2.95 U.S. a pound and investors also took in major earnings reports from the commodity sector.
Teck Resources Ltd. said Monday it earned $411 million in its latest quarter as revenue increased 35% compared with a year ago, helped by sharply higher copper and zinc revenue but offset by lower coal prices.
The mining company said its profit amounted to 70 cents per diluted share compared with a loss of $607 million or $1.27 per diluted share a year ago. Teck shares gained $1.72 to $36.22.
Fertilizer producer Agrium Inc. reported fourth-quarter profit came in at $30 million U.S., down sharply from $124 million a year earlier when it and other fertilizer producers were still reaping the rewards of strong demand and high prices.
Agrium's net sales fell to $1.44 billion in the fourth quarter of 2009, down from $1.94 billion U.S. in the comparable period of 2008 and its shares gained $2.62 to $64.64. Shares in rival Potash Corp. advanced $3.43 to $112.77.
Inmet Mining Corp. shares moved ahead $3.76, or 7.1%, to $56.61 as the company reported an $89.8-million profit in the fourth quarter, a turnaround from the $32.5-million loss that the Toronto-based company had a year earlier. Sales revenue more than doubled to $290.6 million.
And Western Coal Corp. shares ran ahead 32 cents to $3.47 after it said its quarterly profit fell to $24 million or nine cents per diluted share. That was down from a profit of $62.5 million or 29 cents per share in the year-earlier period. Revenue fell to $118.7 million from $176.6 million in the final three months of 2008.
The TSX energy sector advanced as a weakening U.S. dollar offset concerns about the strength of the global economic recovery. Suncor Energy gained 61 cents to $31.89.
Husky Energy Inc. shares crawled ahead six cents to $26.70 even as the company announced its third significant discovery in the South China Sea. The Calgary-based company said Monday that an exploration well in the waters south of Hong Kong tested natural gas at an equipment restricted rate of 57 million cubic feet per day, with indications the Liuhua 29-1 well could produce more than 90 million cubic feet of gas per day in the future.
And shares in Pacific Rubiales Energy Corp. climbed 35 cents to $14.43 after the company announced a new discovery at its Quifa-6 oil well in the Llanos Basin off Colombia and a successful appraisal at the nearby Quifa-18 well.
The gold index was up, as Goldcorp Inc. advanced $1.75 to $38.63 while Barrick Gold Corp. improved $1.21 to $38.25
The financial group moved up, with TD Bank ahead 72 cents to $63.64.
The industrials sector also made headway as Canadian National Railways moved up 94 cents to $53.85.
In other earnings news, Molson Coors says its fourth-quarter profit more than doubled to $218.2 million U.S. because of favourable tax benefits. Worldwide beer volume sold fell 4% as people cut back on their purchases but higher prices helped drive an 11% rise in revenue to $820.8 million U.S. Its shares in New York moved 91 cents lower to $40.40 U.S. while Molson Coors Canada shares were off $1.23 to $43.62.
Oilsands company Opti Canada Inc. had a loss of $212 million or 75 cents per share in its fourth quarter of 2009. That's a reduction from the year-earlier loss of $410 million or $2.09 per share. The Calgary-based oilsands company's revenue also fell, to $43 million in the final quarter of 2009 from $69 million a year earlier. Opti Canada shares slipped 12 cents to $1.79.
The Canadian dollar recouped 0.6 cents to 93.61 cents U.S.
ON BAYSTREET
On the day, all but three of the 14 TSX subgroups prospered, led by metals and mining stocks, galloping ahead 4.9%, global base metals, tacking on 4.2% and materials, adding 3.6%.
The three laggards were real-estate, off 1.3%, utilities, down 0.6%, and information technology issues, backpedaling 0.2%.
The TSX Venture Exchange gained 13.93 points to 1,474.53, while the Nasdaq Canada index gave back 1.16 points to 714.56.
ON WALLSTREET
In New York, stocks rallied Tuesday as growing bets that European officials will rescue Greece from its debt problems reassured investors after a four-week selloff.
The Dow Jones industrial average added 150.25 points, or 1.5%, to end the day at 10,058.64. It was the Dow's biggest one-day point advance since Jan. 4, when it gained 155.91.
The S&P 500 index rose 13.78 points to 1,070.52 and the Nasdaq composite leaped 24.82 points to 2,150.87.
After the close, Dow component Walt Disney reported higher-than-expected quarterly earnings and revenue. Shares rose 2% in extended-hours trading.
Financial shares bounced Tuesday, with the KBW Bank index rising 1.5%. The index has slipped nearly 5% since the stock market peaked on Jan. 19.
Big energy stocks including Exxon Mobil and Chevron rallied as the dollar slipped versus the euro. Barrick Gold, Goldcorp and Alcoa were among the other big commodity shares rising.
Caterpillar gained after it was reportedly upgraded to "overweight" from "underweight" by Morgan Stanley.
Following its recalls totaling 8.1 million vehicles for accelerator problems, troubled automaker Toyota Motor (TM) announced another global recall involving 437,000 hybrids, including the 2010 Prius, for problems in their anti-lock braking systems software.
Coca-Cola reported fourth-quarter earnings of $1.54 billion U.S. or 66 cents U.S. per share, up 55% from a year earlier and in line with analysts' estimates. The Dow component reported revenue of $7.51 billion U.S., up 5% from a year ago and better than expected.
Shares of Coca-Cola rose 2.6%.
Stocks have fallen for four weeks straight on worries about China curbing bank lending, Washington cracking down on bank trading practices, and more recently, Europe's debt woes.
Since peaking at a rally high on Jan. 19, the Dow has lost 7.6%, the S&P 500 has lost 7.3% and the Nasdaq has lost 8.4%.
The threat of a default in Greece has sparked fears of a broader crisis that could impact Portugal, Spain, Ireland, Italy and other debt-challenged European nations. U.S. investors have been trying to gauge what kind of impact such a crisis would have on financial institutions as well as the still-fragile global economic recovery.
News that European Union leaders will meet Thursday to discuss how to manage a growing debt crisis reassured investors. Additionally, Greece said it's raising the retirement age and asking civil servants to accept bonus cuts.
European Central Bank president Jean-Claude Trichet is reportedly leaving a conference in Australia early to join the Thursday meeting. And the Wall Street Journal reported Germany is considering a plan to work with other EU members to offer loan guarantees to Greece and other troubled eurozone countries.
Economically speaking, investors shrugged off a report released after the start of trading that showed wholesale inventories fell 0.8% in December after rising 1.5% in November. Economists surveyed by Briefing.com thought inventories would edge up 0.5%.
Treasury prices tumbled, raising yields on the benchmark 10-year note to 3.63% from Monday's 3.59%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil prospered $2.11 to $74.00 U.S.
Gold prices gained six dollars to $1,072 U.S.