RTTNews - Bay Street stocks have risen sharply in early trading on Tuesday as traders returned to work after a three-day weekend. Global stocks surged yesterday while Canadian markets were closed for Victoria Day.
The S&P/TSX Composite Index has added 258.42 points or 2.65% to move at 10,021.27.
Mining stocks have surged another 5.3% as copper has gained 1.95 cents to $2.0845 per pound. First Quantum (FM.TO), Thompson Creek (TCM.TO) and Teck Cominco (TCK.B.TO) have all gained about 7%, while FNX Mining (FNX.TO) is up 5.8% and Inmet (IMN.TO) has added 5.4%.
Coeur d'Alene Mines Corp. (CDM.TO) has slipped 1.9% after the company announced a one-for-ten reverse split of its common stock, which was approved by Coeur stockholders at the Annual Meeting of Stockholders on May 12. The reverse split will be effective from May 26.
Energy stocks have added 4% with crude oil reaching above $60 per barrel on the NYMEX. Crude has pared most of its gains, moving up 21 cents at $59.26. Earlier it had touched a multi-month intraday high of $60.48, adding to a sharp rally yesterday.
Among the big names, Canadian Oil Sands (COS.UN.TO) has added 6.1%, Canadian Natural Resources (CNQ.TO) is up 5.75% and Husky Energy (HSE.TO) is up 5.3%.
Financials are showing a 3.2% gain. The big six banks are all in the green with Scotiabank (BNS.TO) up 3.3% and National Bank (NA.TO) rising 3.2%.
Meanwhile, Toronto-Dominion Bank (TD.TO) is reportedly expected to submit a bid along with Goldman Sachs for Florida lender BankUnited Financial Corp., according to the Wall Street Journal. The stock is up 2.5%.
In other corporate news, agriculture giant Viterra (VT.TO) has added 1.8% after the company announced it has proposed to acquire ABB Grain Ltd. in a transaction valued at about C$1.4 billion. ABB's board has unanimously recommended shareholders accept the offer.
Rogers Wireless (RCI.B.TO) and Research In Motion (RIM.TO), Sunday launched the BlackBerry Curve 8900 smartphone in Canada. RIM shares are up 1.3% and Rogers is up 0.7%.
Erdene Resource Development Corp. (ERD.TO) has added 1.7% after the company reported first-quarter net income of C$681,000 or C$0.01 per share, compared to net loss of C$1.55 million or C$0.02 per share last year.
Across the border, Home Depot (HD) reported adjusted first-quarter net income of $587 million or $0.35 per share, down from $697 million or $0.41 per share earned in the same quarter of last year. Wall Street expected earnings of $0.29 per share.
In economic news, the U.S. Commerce Department announced that housing starts dropped 12.8 percent in April to an annual rate of 458,000 units. The result for March was revised to a rate of 525,000 units, a decline of 8.5 percent from the previous month. Analysts had expected starts to rise to a pace of 540,000 units from the rate of 510,000 units that was originally reported for March.
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