RTTNews - Bay Street have moved sharply higher on Tuesday, led by strength in the financial and technology sectors. With the rally, Toronto's main index in on target for its highest close since October.
The S&P/TSX Composite Index has rallied 202.76 points or 2.013% to move at 10,272.55. Stocks erased an early slide following an encouraging consumer confidence report from the U.S.
Financials have climbed nearly 4% as traders brace for earnings reports from the big banks. Bank of Montreal (BMO.TO) is up 4.7% despite reporting second-quarter adjusted net income of C$518 million or $0.91 per share, compared with C$614 million or $1.19 per share a year ago.
The company also declared a dividend for the third quarter that was unchanged from the year-ago period as well as the preceding second quarter.
Tech stocks are up 2.9% with Blackberry-maker Research in Motion (RIM.TO) jumping 4.7%.
Energy stocks are up 2% as crude oil has turned higher on the NYMEX. Canadian Natural Resources (CNQ.TO) is up 3.4%, Suncor (SU.TO) has added 2.7% and Encana (ECA.TO) has gained 1.5%.
Light sweet crude for July has added 73 cents to $62.40 per barrel. Prices had earlier touched as low as $59.53.
In other corporate news, Denison Mines Corp. (DML.TO) has dropped 10.9%. The company announced that it has entered into an agreement with a syndicate of investment dealers which have agreed to purchase, on a bought deal basis, 40 million common shares of Denison at a purchase price of C$2.05 per common share, for aggregate gross proceeds in the amount of C$82.0 million.
Biovail Corp. (BVF.TO) is up 0.3% after it announced the settlement of proxy contest with founder and former chief executive officer Eugene Melnyk in connection with the annual and special meeting of shareholders to be held on May 28.
Linear Gold Corp. (LRR.TO) has soared 19% after the company announced that it has signed a deal with GLR Resources to acquire a 100% interest in the Goldfields Project located near Uranium City, Saskatchewan. Linear will pay GLR US$5.0 million in cash and issue 727,273 Linear Gold Corp. shares with a deemed value of C$800,000.
Canadian Auto Workers members voted in favor of a new cost-cutting deal with General Motors Corp. (GM) a key condition for the automaker to receive billions in government loans from Canada and Ontario. GM still faces a June 1 deadline from President Obama to restructure outside of court or file for bankruptcy protection.
On the economic front, Statistics Canada reported employment insurance claims rose 10.6% to 65,300 in March. While the number of people receiving benefits climbed in March, the number of initial and renewal claims received during that month edged down 1.9%.
Across the border, a Conference Board report showed that the consumer confidence index rose to 54.9 in May from an upwardly revised 40.8 in April. Economists had expected the index to edge up to 42.6 from the 39.2 originally reported for the previous month.
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