May 17, 2016 - 5:00 AM EDT
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Toronto Stocks Resume Rise

Metals, Health-Care Lead Pack

Equities in Canada's biggest centre gained on Tuesday as the energy group rose on higher oil prices and Valeant Pharmaceuticals International surged after it said it would make required securities filings to Canadian regulators.

The S&P/TSX Composite Index picked up 81.26 points to greet noon at 13,974.75

The Canadian dollar pulled ahead 0.07 cents to 77.62 cents U.S.

Laval, Quebec-based Valeant, which is under scrutiny over its drug pricing, business practices and accounting, rose 4.5% to $36.41 after saying it planned to make the filings on or before June 10.

Canadian Natural Resources added 0.8% to $38.03 and Enbridge rose 1.6% to $52.96.

The TSX's energy group climbed, although some companies are facing renewed disruption to operations from a massive wildfire around the Fort McMurray oil sands hub.

Suncor Energy advanced 0.5% to $35.16, after saying it had started a staged shutdown of its base plant in the region.

Junior oil sands producer Connacher Oil and Gas Ltd filed for protection from creditors at an Alberta court on Monday, a victim of the two-year slump in global crude prices. Its shares are trading at 14 cents.

The materials group, which includes precious and base metals miners and fertilizer companies, added strength, with Potash Corp gaining 1.9% to $21.12.

Shares of Bombardier Inc, which is in talks with the federal government for financial backing, declined 2% to $1.92. A senior executive with Embraer SA told the media on Monday that the Brazilian plane maker may challenge the state funding received by its Canadian rival at the World Trade Organization

On the economic beat, Statistics Canada reported that manufacturing sales in this country fell 0.9% to $50.0 billion in March, a second consecutive monthly decline.


The TSX Venture Exchange eased 0.63 points to 685.78

Seven of the 13 TSX subgroups turned positive by noon, with metals and mining reversing gears and climbing 4.1%, while health-care was 3% higher, and materials strengthened 2.4%.

The half-dozen laggards were weighed most by consumer staples, down 1.3%, real-estate, sliding 1%, and utilities, off 0.4%.


Stocks south of the line held lower in choppy trade Tuesday, with declines in consumer staples and utilities offsetting gains in energy as oil prices climbed.

The Dow Jones Industrials remained lower 45.17 points to 17,665.54. Home Depot traded about 1.5% lower after briefly dipping 2.5%, for the greatest negative impact on the Dow as most member stocks declined.

The S&P 500 lost 5.07 points to 2,061.59. Consumer staples and utilities traded more than 1% lower to lead S&P 500 decliners.

Constellation Brands, Kraft Heinz and Hormel Foods were the greatest laggards in the staples sector with declines of about 2.5% or more. Only Archer-Daniels-Midland and Whole Foods traded higher.

The NASDAQ Composite faded 7.19 points to 4,768.27, as Apple tried for a third-straight day of gains.

TJX Cos, the owner of T.J. Maxx and Marshalls, reported a 9.9% rise in quarterly sales, while comparable sales rose 7%. Net income rose to $508.3 million U.S., or 76 cents per share, in the first quarter ended April 30 from $474.6 million U.S., or 69 cents per share, a year earlier.

On the economic board, industrial production rose 0.7% in April. Capacity utilization was 75.4%.

The U.S. Labor Department says the consumer price index rose 0.4% in April. Ex-food and energy, the index rose 0.2% last month, or 2.1% over the last 12 months. That compares with a 2.2% rise for the 12 months ending March.

Housing starts rose 6.6% in April to a seasonally-adjusted annual pace of 1.17 million units.

Prices for the 10-year Treasury gained ground, lowering yields to 1.74% from Monday's 1.75%. Treasury prices and yields move in opposite directions.

Oil prices added 52 cents a barrel to $48.24 U.S.

Gold prices gained $5.09 to $1,279.25 U.S. an ounce.

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Source: News (May 17, 2016 - 5:00 AM EDT)

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