Feb. 17, 2010 (Baystreet.ca) --
Canadian stocks appeared to hold on to their recent gains early Wednesday morning on firm commodities prices.
The S&P/TSX Composite Index improved 87.41 points to 11,673.78
Encouraging domestic wholesales numbers and housing starts data from across the border may also help lift sentiment. However, any upside may be capped on profit taking after the main index moved higher for the past five sessions, adding over 4%.
In corporate news, New Gold said it purchased 70% interest in El Morro SCM and associated rights and assets from a subsidiary of Xstrata Plc for a total cash consideration of $463 million.
Iamgold Corp reported fourth-quarter net loss of $0.13 per share, compared to net loss of $0.33 per share last year.
Internet services provider Tucows Inc. reported net earnings of $0.17 per share for 2009, up from $0.03 per share in 2008 and announced that it will repurchase up to $10 million of its common stock.
Software solutions provider Intrinsyc Software International appointed Randy Moore as Vice President, Engineering Operations.
Communications services provider Rogers Communications Inc. reported fourth-quarter net income of $0.51 per share, compared to net loss of $0.22 per share in the year-ago period.
Country's largest food distributor Loblaw Companies said its fourth-quarter net earnings were $0.60 per share, down from $0.70 per share last year.
In brokerage updates, Thomas Weisel initiated coverage of Chariot Resources with an "overweight" rating.
In economic news, Statistics Canada said country's wholesales trade in current dollars increased by 0.7% to $42.80 billion in December, in line with forecasts. The machinery and electronic equipment sector contributed the most to the growth in December. Sales in this sector climbed 1.2% to $8.8 billion.
The Canadian dollar nipped ahead 0.02 cents to 95.80 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups were up to begin Wednesday. Metals and mining stocks surged 1.1%, followed by global base metals and consumer staples, up 1% each.
The two laggards were telecoms, down 0.7%, and information technology, off 0.4%.
The TSX Venture Exchange picked up 6.66 points to 1,526.80, while the Nasdaq Canada index skidded 5.40 points to 744.78.
ON WALLSTREET
In New York, equities gained Wednesday morning -- albeit not as sharply as in Toronto -- as encouraging reports on housing and corporate profits reassured investors about the strength of the burgeoning economic recovery.
The Dow Jones industrial average tacked on 30.83 points in the first hour of trading to 10,299.64. The S&P 500 index picked up 3.99 points to 1,098.86, and the Nasdaq composite gained 5.83 points to 2,220.02.
Stocks rallied Tuesday after Merck and Barclays released better-than-expected results and commodity prices rose. The Dow gained 1.7% or 170 points, for its biggest one-day point gain since Nov. 9.
Some experts said that Wall Street is getting a lift as overseas anxiety over Greek debt abates, as that country gets close to a resolution with the European Union.
Economically speaking, the National Association of Home Builders reported that housing starts jumped 2.8% in January to an annual rate of 591,000, which was more than expected.
Housing starts were expected to have reached an annual rate of 580,000 units in January, according to a Briefing.com consensus of economist forecasts.
Building permits, a measure of houses yet to be built, fell 4.9% to an annual rate of 691,000 units in January, which was better than expected. The rate of permits was expected to have slipped to 620,000 in January.
The U.S. Bureau of Labor Statistics reported import and export prices for January. Import prices rose 1.4% and export prices rose 0.8%, the government said.
Reports on industrial production and capacity utilization were also released before the bell.
Investors will also look to the minutes from the Federal Reserve's last meeting, due out at 2 p.m. ET.
Deere & Co. reported higher quarterly earnings that topped estimates on lower revenue that also topped estimates. The heavy equipment maker said that cost-cutting and the benefit of better currency rates helped offset the weak economic environment. Deere also boosted its 2010 sales forecast. Shares gained 7% in morning trading.
Dow component Hewlett-Packard is due to report results after the close of trade Wednesday. The tech behemoth is expected to have earned $1.06 U.S. per share, up 14% from a year ago.
Around 379 companies, or 76% of the S&P 500, have reported results. Currently, results are on track to have risen 208% from a year earlier, according to Thomson Reuters. Revenues are set to rise 8%. Stripping out the recharged financial sector, earnings are set to rise 16% and revenues 3%.
In other company news, Walgreens said it will buy rival drugstore Duane Reade in a deal valued at $1.08 billion U.S. including debt.
Finally, Toyota announced it would tighten controls on safety, including employing new quality control officers worldwide, following its massive recall.
Treasury prices dipped, raising the yield on the 10-year note to 3.68%, from 3.66% Tuesday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil increased a dime to $77.14 U.S.
Gold prices were unchanged at $1,120 U.S.
