Apr. 1, 2009 (Baystreet.ca) --
12:35 pm EST
Stock markets were positive late Wednesday morning as better-than-expected readings on U.S. manufacturing and construction helped balance other data suggesting bigger-than-expected American job losses last month.
The S&P/TSX Composite Index was on the march by noon hour, advancing 141.18 points to 8,861.57
The performance extended a rally that started just over three weeks ago and has lifted the TSX about 16% after the main index had sold off to 2004 levels.
Perhaps investors took some cheer from statements published Wednesday by the head of the Royal Bank of Canada. CEO Gordon said the worst of the financial crisis may be over.
"The financial services crisis has stabilized," Nixon said in an interview yesterday in New York. "The worst is over."
Nixon also went on record as saying Canada's biggest banks probably won't need to tap a $218-billion debt backstop program set up by the federal government because their finances are sound.
The Toronto market's energy sector was ahead even as U.S. crude inventories rose a more than expected 2.8 million barrels last week and gasoline stockpiles increased despite analysts' predictions for a steep drop
EnCana Corp. gained $1.35 to $52.95 and Suncor Inc. rose 42 cents to $28.56.
The financial sector improved as Royal Bank rose 57 cents to $37.35 and CIBC climbed $1.78 to $47.66.
The base metals sector rose as Teck Cominco Ltd. gained 34 cents to $7.39 and Ivanhoe Mines Ltd. rose 45 cents to $8.23.
The gold sector moved up as Barrick Gold Corp. gained $1.03 to $41.84.
AbitibiBowater Inc. said Wednesday it would pursue new restructuring options after an effort to refinance its U.S. subsidiary's $1.8-billion U.S. debt expired.
The Montreal-based newsprint producer said debt exchange offers meant to tackle Bowater's debt have been terminated, with all previously tendered notes being returned to their original holders and its shares fell 14 cents to 68 cents.
Shares in Research in Motion Ltd. were ahead $3.59 to $58.08 as the BlackBerry maker launched its one-stop shop for add-on applications. BlackBerry App World is available as a free download from RIM's website, with 1,000 applications. Users need an account with eBay Inc.'s PayPal payment service and a BlackBerry with a trackball or touch screen.
The Canadian dollar was down 0.18 cents to 79.11 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 10 were positive, led by metals and mining, up 4.4%, gold ahead 2.2% and financials, jumping 2%.
The three losing groups were health-care stocks, down 0.7%, industrials and consumer discretionaries, off 0.2% each.
The TSX Venture Exchange slid two points to 954.82 while the Nasdaq Canada Index added 20.17 points to 468.24
ON WALLSTREET
The Dow Jones Industrials average reversed early-day losses, to charge ahead 95.25 to 7,704.17
The S&P 500 index was gained back 7.7 points to 805.57, while the Nasdaq dropped picked up 16.20 points to 1,544.79
Economically, the ADP National Employment Report said private sector employment dropped by 742,000 in March. The figure was higher than anticipated, and a rattling sign ahead of the Labour Department's non-farm payrolls report coming out on Friday.
Economists had forecast a loss of about 650,000 jobs during the month.
Other economic data beat expectations.
The U.S. Commerce Department said February construction activity dropped 0.9%, better than the 1.5% decline economists expected. The weakness in February reflected a 4.3% drop in housing construction, which pushed the level down to the lowest in 11 years.
The U.S. industrial sector contracted for a 14th consecutive month in March as the Institute for Supply Management reported its manufacturing index rose to 36.3 in March from 35.8 in February. Economists expected the index to rise slightly to 36.
The future of General Motors Corp. was also in focus after the New York Times reported that the U.S. government may seek to push GM into what it calls a "controlled" bankruptcy by persuading at least some creditors to agree to a plan that would split the company in two.
On Tuesday, new GM CEO Fritz Henderson said that the pressure from the government pushed the automaker closer to bankruptcy. GM stock fell 13 cents to $1.81 U.S. in New York while Ford Motor Co. shares lost five cents to $2.58 U.S.
The American and Canadian governments on Monday both rejected the proposed restructuring plans put forward by GM and Chrysler LLC.
The automakers are releasing March sales figures during the day.
Investor attention is also fixed on the G20 summit of world leaders in London.
U.S. President Barack Obama said that he was "absolutely confident" that the meeting of rich and emerging countries would find consensus to reach a deal to help pull the world out of deep recession.
But French President Nicolas Sarkozy warned that neither his country nor Germany would align with "false compromises," suggesting that final agreement on what do to was still being worked out.
Washington has pushed for other governments to pump more money into economic stimulus programs, but many European countries have instead promoted a focus on tighter regulation to rein in financial market excesses.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.69% from 2.68% Tuesday. Treasury prices and yields move in opposite directions.
The May crude contract on the New York Mercantile Exchange declined $1.80 to $47.86 U.S. a barrel.
The June bullion contract moved down $1.70 to $923.30 U.S. an ounce