Valeant, HudBay in Focus
Stocks in Canada's largest centre rose for a second day as commodity producers rallied amid increases in the prices for crude oil and gold, while gains in Valeant Pharmaceuticals International helped boost health-care companies.
The S&P/TSX Composite Index came off its highs of the day, but still added 23.61 points to close Tuesday at 13,917.10
The Canadian dollar fell behind 0.06 cents to 77.49 cents U.S.
Valeant climbed $2.72, or 7.8%, to $37.57, rising for a third session, while Concordia Healthcare Corp. surged 89 cents, or 2.4%, to $38.27, to lead health-care shares higher.
HudBay Minerals Inc. marched ahead 31 cents, or 6.1%, to $5.41, and Encana Corp. jumped 37 cents, or 4%, to $9.55, as energy and raw-materials producers climbed. Oil hit a seven-month high in New York on speculation that U.S. crude stockpiles declined last week while supply losses in Canada and Nigeria whittled away the global excess.
Penn West Petroleum Ltd. surged 12 cents, or 14.6%, to 94 cents, to lead all gainers in the S&P/TSX. In an earnings release Monday, the oil and natural gas producer said it exceeded production estimates in the first quarter, and reaffirmed its yearly forecast.
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.
ON BAYSTREET
The TSX Venture Exchange eased 0.24 points to 686.17
Eight of the 13 TSX subgroups proved negative on the day, as consumer staples moved downward 2%, real-estate was off 1%, and consumer discretionary issues slid 0.7%.
The five gainers were led by metals and mining, up 3%, materials, picking up 2%, and gold, better by 1.2%.
ON WALLSTREET
Equities south of the border closed sharply lower Tuesday, amid gains in oil prices, after renewed investor concerns about a U.S. Federal Reserve moving sooner rather than later.
The Dow Jones Industrials tumbled 180.73 points, or 1%, to 17,529.98, with Home Depot contributing the most to declines.
The stock traded more than 3% lower, but is up about 16% over the last 12 months. Early Tuesday, the home improvement retailer posted quarterly earnings and revenue that topped expectations and also raised its full-year guidance.
The S&P 500 surrendered 19.57 points, or 1%, to 2,047.09, erasing year-to-date gains in afternoon trade Tuesday, as consumer staples and utilities traded more than 2% lower to lead decliners. Kraft Heinz traded more than 4% lower and Hormel Foods declined more than 3.5% as the greatest laggards in the staples sector.
The NASDAQ Composite fell 59.72 points, or 1.3%, to 4,715.73,
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 sagged, raising yields to 1.76% from Monday's 1.75%. Treasury prices and yields move in opposite directions.
Oil prices added 71 cents a barrel to $48.43 U.S.
Gold prices gained $4.98 to $1,279.14 U.S. an ounce.
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