Mar. 25, 2009 (Baystreet.ca) --
12:40 pm EST
Stock markets moved higher this morning as surprisingly positive American economic data persuaded traders to extend the March rally well into a third week.
The S&P/TSX Composite Index resumed its upward mobility, picking up 101.71 by noon to 8,951.10
The TSX energy sector was flat, as the latest U.S. inventory figures showed crude supplies rose by 3.3 million barrels last week, about twice the amount expected. EnCana Corp. gave back 71 cents to $53.79.
The financial sector pulled ahead as TD Bank rose $1.26 to $44.99 and Royal Bank gained 54 cents to $37.64.
AGF Management Ltd. was ahead 19 cents to $8.48 after its first-quarter profit fell by 80% from a year earlier to $12.2 million.
The TSX base-metals sector moved ahead. Teck Cominco Ltd. added 60 cents to $7.38 and HudBay Minerals improved 21 cents to $6.21.
The Toronto gold sector was ahead, as Barrick Gold Corp. was up 78 cents to $40.30.
In corporate news, U.S. Sen. Charles Schumer says Magna International owner of upstate New York autoparts maker New Process Gear, has agreed to discuss a last-minute aid package that could keep the plant from closing. Magna shares rose $1.88 to $35.89.
CGI Group Inc. shares were up three cents to $9.78 after the company got a 10-year, $182-million contract to manage information technology infrastructure for the Foresters life insurance organization.
A Hong Kong-based company controlled by China National Nuclear Corp. is offering $31 million cash in a friendly takeover offer of Western Prospector Group Ltd. Western shares soared 17 cents or 46% to 54 cents.
The Canadian dollar surged 0.37 to 81.59 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, gainers dwarfed losers 11 to two. Metals and mining was the clear leader, advancing 4.2%, followed by real-estate, up 2.2% and gold, up 2%.
The two laggards were utilities, sliding 0.9% and health-care stocks, off 0.5%.
The TSX Venture Exchange had gained 9.56 points by noon to 933.85, while the Nasdaq Canada Index slid 5.57 to 452.42
ON WALLSTREET
The Dow Jones Industrials average careered 186.69 points to 7,846.66. The S&P 500 index gained 18.37 points to 824.49, while the Nasdaq gained 30.40 points to 1,546.92
In a primetime news conference Tuesday, U.S. President Obama said there would be no "quick fixes" for the recession and that it would take time for the economy to recover.
But he also insisted his administration has a strategy in place to "attack this crisis on all fronts."
Economically speaking, the U.S. Commerce Department reported that orders to U.S. factories for big-ticket goods rose 3.4% last month, much better than the 2% drop that had been expected. It was the first advance since July and the strongest one-month gain in 14 months.
The Commerce Department also said new-home sales rose 4.7% in February.
The stock market rally kicked off March 10 on reports of profitability at American financial services company Citigroup. The TSX main index and the Dow industrials have surged by about 17% from their March 9 trough.
Financials again led the charge, with Bank of America, Wells Fargo and JPMorgan Chase, among the gainers.
Treasury prices dipped, raising the yield on the benchmark 10-year note to 2.71% from 2.70% Tuesday. Treasury prices and yields move in opposite directions.
The May crude contract on the New York Mercantile Exchange fell $1.07 to $52.91 U.S. a barrel.
The April bullion contract on the Nymex was ahead $7 to $930.80 U.S. an ounce