The bulls will look to run once again on Bay Street Tuesday, but earnings signals are pointing towards relatively lackluster open as market players geared up for another round of earnings results. Attention will also focus on Capitol Hill, where US Fed Chairman Ben Bernanke will testify on the prospects of recovery for the world's biggest economy.
Bay Street stocks soared on Monday and Toronto's main index finished at its best level in almost six months. The market was boosted by strong economic data out of the U.S. as well as rising commodity prices.
The S&P/TSX Composite Index added 373.31 points or 3.93% to end at 9,870.37.
Commodity prices have surged of late a recovery play, taking mining stocks and the Canadian dollar along for the rise. Earlier this morning, the loonie hit $1.1700 versus the dollar for the first time in months.
In corporate news, Magna International, Inc. (MGA, MG.A.TO), North America's largest auto parts maker, announced that it could buy a minority stake in Opel, the European unit of ailing automaker General Motors Corp. (GM) and one of Magna's customers in Europe. The offer would rival that of Italy's Fiat SpA.
From the oil patch, EnCana Corp. (ECA, ECA.TO) announced that it has completed public offering US$500 million notes with a coupon rate of 6.50% due May 15, 2019. The company intends to use offering net proceeds to repay portion of its existing bank and commercial paper indebtedness.
Meanwhile, earnings will take center stage with the release of results from supermarket operator Loblaw (L.TO) and gold producers Kinross (K.TO) and Yamana (YRI.TO).
Energy shares may be in play as the price of oil slipped a bit to $54 after hitting a 2009 high on Monday.
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