Toronto stocks have moved higher in Tuesday afternoon trading, recovering some of yesterday's sharp losses. The mining sector has seen further strength, while banks have gained on encouraging comments from Treasury Secretary Timothy Geithner.
The S&P/TSX Composite Index has climbed to 83.17 or 0.9% to move at 9,208.79. Investors mulled over a slew of corporate news as well as an unexpected rate-cut from the Bank of Canada.
Mining stocks have surged 9.3%. Teck Cominco (TCK-B.TO) has soared 29% after the company said that it has entered into a commitment letter to amend its existing US$4 billion senior term loan facility and US$5.81 billion senior bridge loan facility.
Earlier, Teck Cominco announced its first-quarter net earnings were C$241 million or C$0.50 per share, down from C$345 million or C$0.78 per share, hurt by lower copper prices. The company reported an 11% rise in sales for the first quarter.
Duluth Metals Limited (DM.TO) has jumped 6.9% after the company announced the acquisition of 5,142 acres of prospective mineral leases within the Duluth Complex.
Financials are showing a 2.4% gain, led by a 4.9% jump for Scotiabank (BNS.TO) and a 4.7% increase for CIBC (CM.TO). Bank of Montreal (BMO.TO) is up 3.6%.
Geithner assured the Congressional Oversight Panel Tuesday that there is enough money left in the Troubled Asset Relief Program, the $700 billion financial rescue program, to stabilize the financial system. There is at least $134.4 billion in TARP funds left, Geithner said, while over $590 billion has already been committed.
Energy stocks are up 1.6% as crude oil has turned higher on the NYMEX, adding 76 cents to $46.64. Canadian Natural Resources (CNQ.TO) has rallied 2.7% and Canadian Oil Sands (COS.UN.TO) is up 2.1%.
Tech stocks are up 1.6%. Blackberry maker Research in Motion (RIM.TO) has added 2.5% after Texas Instruments (TXN) reported adjusted first-quarter earnings per share and revenue exceeded analysts expectations.
On the downside, gold stocks have lost 2.9% and materials stocks have lost 1.5% as the precious metal gave back early gains on the Comex. Royal Gold (RGL.TO) has dropped 6.8%, Goldcorp (G.TO) has declined 5% and Eldorado (ELD.TO) has declined 4.7%.
Agrium Inc. (AGU.TO) is up 0.6% as the company reaffirmed its interest in acquiring CF Industries Holdings (CF).
In other corporate news, Canadian National Railway Company (CNR.TO) has added 2.2%. The company announced its first-quarter net income rose to C$424 million or C$0.90 per share for the quarter, up from C$311 million or C$0.64 per share in the prior-year period. Quarterly revenues declined to C$1.859 billion, down 4% from C$1.927 billion in the prior-year period, but exceeded Street estimate of C$1.68 billion.
The BoC announced Tuesday morning that it is lowering its target for the overnight rate by one-quarter of a percentage point to 0.25 percent. Most economists were predicting that the Bank would stand pat.
The Bank now expects the recovery to be delayed until the fourth quarter and to be more gradual. The economy is projected to grow by 2.5 percent in 2010 and 4.7 percent in 2011, and to reach its production capacity in the third quarter of 2011.
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