An unexpectedly positive report on manufacturing activity in the United States drove investor sentiment on Tuesday, when many world markets were closed for the May Day holiday.

Here are the closing numbers

TSX — 12332.79 +0.33% +40.10

S&P 500 — 1405.82 +0.57% +7.91

Dow — 13279.32 +0.5% +65.69

Nasdaq — 3050.44 +0.13% +4.08

In Toronto, the benchmark S&P/TSX composite index rose 40.09 points, or 0.33%, to 12,332.79. Six of the 10 sub-indexes advanced, led by energy, up 0.96%, and health care, which rose 0.94%.

Shares in Suncor rose 0.95% to $32.94 after the energy giant hiked its dividend and reported earnings that topped estimates after the market closed on Monday. Talisman Energy fell 3.10% to $12.52 after that company forecast flat production for the rest of the year.

The price of oil rose US$1.29 to US$106.16 a barrel on Tuesday, while gold fell US$1.80 to US$1,662.40 an ounce.

Purchasing managers index figures for a number of countries were released on Tuesday — in China, the official number was 53.3, above the previous reading of 53.1 but slightly below expectations for 53.6; in the U.K. the PMI fell to 50.5 from 52.1 the previous month, missing estimates of 5.15. In Canada, the RBC PMI rose nearly a point in April to 53.3, with all four regions of the country reporting growth.

“Depending on where your business is and where your customers are, global manufacturing isn’t faring too badly. Activity in April actually picked up in certain parts of the world, but Europe continues to be a deepening area of concern. The recession will not help the sector, either,” said Jennifer Lee, an economist with BMO Capital Markets.

It was a bigger-than-expected increase in the Institute for Supply Management’s manufacturing index that gave markets a real boost on Tuesday, with the numbers showing manufacturing activity in April increased at its fastest pace in 10 months.

“Economic data for March had raised questions about whether the U.S. economy was slowing,” said analyst Colin Cieszynski of CMC Markets. “(Tuesday’s) PMI number suggests that March may have been a normal pause and that upward momentum may have resumed again in April.”

The Dow Jones industrial average rose 65.69 points, or 0.50%, to 13,279.32, while the Nasdaq pared earlier gains to close at 3,050.44, up 4.08 points, or 0.13%.

Canada’s junior Venture exchange rose 7.64 points, or 0.54%, to 1,431.68.

The Canadian dollar rose 22 basis points to US$1.0114.

“Positive developments for the U.S. economy are going to help the Canadian dollar,” Greg Anderson, the North American head of G-10 currency strategy at Citigroup Inc. in New York, told Bloomberg. “The Canadian dollar is attractive and we can move below 98 cents in dollar-Canada and somewhat decisively if the Bank of Canada continues to make hawkish noises.”

Speaking in Toronto on Tuesday, Bank of Canada governor Mark Carney said once again that higher interest rates “may become appropriate.”

Here’s the news investors were watching today:

RIM puts BlackBerry 10 testing devices in hands of developers

WestJet chooses Bombardier Q400 for regional fleet as earnings soar

Sell in May and … miss a nice rally

ON DECK WEDNESDAY

ECONOMIC NEWS

UNITED STATES

8:15 a.m.

• ADP National Employment Report (April): Economists expect 170,000 jobs, down from the month before

10 a.m.

• Factory orders (March): Economists expect a decline of 1.7%

CORPORATE NEWS

CANADA

• Barrick Gold Corp Q1 earnings: Analysts expect US$1.11 a share
• Loblaw Cos Q1 earnings: Analysts expect 50¢
• Maple Leaf Foods Inc Q1 earnings: Analysts expect 17¢
• Fortis Inc Q1 earnings: Analysts expect 67¢
• DragonWave Q4 earnings: Analysts expect 23¢
• Fortis Q1 earnings: Analysts expect 67¢

UNITED STATES

• Clorox Q3 earnings: Analysts expect US$1.04
• Comcast Corp Q1 earnings: Analysts expect 42¢
• Devon Energy Corp Q1 earnings: Analysts expect US$1.43
• Hartford Financial Services Q1 earnings: Analysts expect 90¢
• MasterCard Inc Q1 earnings: Analysts expect US$5.29
• MetLife Q1 earnings: Analysts expect US$1.24
• Prudential Financial Inc Q1 earnings: Analysts expect US$1.68
• Time Warner Inc Q1 earnings: Analysts expect 65¢
• Visa Inc. Q2 earnings: Analysts expect US$1.50
• Whole Foods Market Q2 earnings: Analysts expect 59¢

Canada’s benchmark stock index broke out of a near-global slump in the markets on Monday, rising ahead of the North American close as Energy Transfer Partners LP’s $5.3-billion deal to buy Sunoco Inc. fuelled speculation about more energy-sector merger activity.

Here are the closing numbers

TSX — 12292.69 0.45% +54.94

S&P 500 — 1397.91 -0.39% -5.45

Dow — 13213.63 -0.11% -14.68

Nasdaq — 3046.36 -0.74% -22.84

The S&P/TSX composite index rose 54.95 points, or 0.45%, to 12,292.69, a decline of 0.8% for the month. Seven of the 10 sub-indexes advanced, led by energy, which rose 1.45%.

“There’s merger and acquisition speculation in that sector,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ont., told Bloomberg. “Shares are already down pretty significantly across the board” among energy shares, “so there may be some relative value there that people are finding.”

The price of crude oil trimmed earlier losses to close at US$104.87 a barrel, down six cents.

The energy sector was one bright spot in a day when disappointing economic news started with Spain, which entered its second recession since 2009 after a first-quarter decline in gross-domestic product; data showing business activity in the U.S. grew at a slower-than-expected pace in April; and a 0.2% drop in Canadian GDP in February, where analysts had been forecasting a 0.2% gain.

“The decline in February left Canadian GDP up just 1.6% year over year, the slowest annual gain in more than two years,” said Douglas Porter, deputy chief economist at BMO Capital Markets. “While at least some of the drop will be reversed in March, we have chopped our first-quarter growth estimate to 1.75% (from 2.1%), and don’t expect much better from Q2. Meanwhile, the U.S. economy managed to grind out 2.2% growth in Q1, and is now up 2.1% year-over-year — nudging ahead of Canada on a year-over-year basis, for one of the few times in the past seven years.”

The Canadian dollar, which came close to closing two cents above par with the U.S. greenback on Friday, slipped 72 basis points to US$1.0122 at the start of the week as Canada’s GDP data seemed to work against the possibility of imminent rate hikes from the Bank of Canada.

The price of gold also erased some of its earlier losses, to end the day at US$1,664.20 an ounce, down 60 US cents.

In the U.S., the Dow Jones industrial average fell 14.68 points, or 0.11%, to 13,213.63, and the Nasdaq composite lost 22.84 points, or 0.74%, to 3,046.36.

“The economic doldrums in Europe are casting a shadow over any progress we’re making,” Jack Ablin, chief investment officer of Harris Private Bank in Chicago, told Bloomberg.

Canada’s junior Venture exchange rose 11.28 points, or 0.80%, to 1,424.04.

Here’s the news investors were watching today:

Canada’s GDP miss may put rate hike on hold

Was Canadian banks’ ‘secret’ bailout really a secret?

No end in sight to global jobs crisis

Spain is staggering under two fresh blows

ON DECK TUESDAY

ECONOMIC NEWS

• Bank of Canada governor Mark Carney receives Canadian of the Year award from The Canadian Club of Toronto
• Reserve Bank of Australia announces interest rate decision

CANADA

9:30 a.m.

• RBC Manufacturing PMI (April)

UNITED STATES

10 a.m.

• ISM index (April): Economists expect a reading of 53, almost flat with last month
• Construction spending (March): Economists expect a 0.5% rise

CORPORATE NEWS

CANADA

• Talisman Energy Q1 earnings: Analysts expect 22¢ a share
• Thomson Reuters Corp Q1 earnings: Analysts expect 41¢
• WestJet Q1 earnings: Analysts expect 37¢
• Open Text Q3 earnings: Analysts expect $1.18
• MacDonald Dettwiler and Associates Q1 earnings: Analysts expect 87¢
• Cott Corp Q1

UNITED STATES

• Pfizer Q1 earnings: Analysts expect 56¢
• Office Depot Inc. Q1 earnings: Analysts expect 5¢
• Broadcom Q1 earnings: Analysts expect 55¢ a share
• CBS Corp Q1 earnings: Analysts expect 43¢
• Chesapeake Energy Q1 earnings: Analysts expect 33¢
• Marathon Oil Corp. Q1 earnings: Analysts expect 84¢

North American markets were higher at midday Friday as investors shrugged off a disappointing report on first-quarter U.S. economic growth, choosing to focus instead on positive earnings reports.

At midday in Toronto the benchmark S&P/TSX composite index was up about 24 points, or 0.20%, to 12,170.

The price of crude oil had slipped 35 cents US to $104.20 US a barrel, while gold was up $4.50 US to $1,665.00 US an ounce.

The Canadian dollar was up 29 basis points to $1.0192 US in late-morning trading.

The U.S. Commerce Department reported Friday that gross domestic product in the U.S. grew at a 2.2% pace in the first quarter, below expectations of 2.5% growth, despite a jump in consumer spending in the quarter.

Meanwhile, Amazon.com Inc. and Expedia Inc. beat estimates with their first-quarter earnings, overshadowing less-positive results from Starbucks Corp. as well as Procter & Gamble’s announcement that it has cut its profit estimate.

At midday the Dow Jones industrial average was up about 31 points, or 0.23%, to 13,235, while the Nasdaq had gained 13 points, or 0.41%, to 3,063.

European markets advanced: London’s FTSE rose 0.49%, the CAC in Paris climbed 1.14% and Frankfurt’s DAX gained 0.82%. In Asia, Tokyo’s Nikkei edged down 0.43% while Hong Kong’s Hang Seng slipped 0.33%.

Canada’s benchmark stock index on Thursday posted its second straight positive close after three consecutive losses as a light economic calendar focused a spotlight on earnings reports and mixed economic reports from the U.S.

Here are the closing numbers

TSX — 12145.85 0.29% +34.79

S&P 500 — 1399.98 0.67% +9.29

Dow — 13204.62 0.87% +113.90

Nasdaq — 3050.61 0.69% +20.98 The S&P/TSX composite index rose 34.78 basis points, or 0.29%, to close at 12,145.85. Six of the 10 sub-indexes advanced, led by technology, up 1.39% and industrials, which rose 1.36%. Materials led the decliners after Goldcorp Inc., which reported first-quarter earnings after the close on Wednesday, and Potash Corp. of Saskatchewan both missed analysts’ estimates. Goldcorp shares dropped 6.03% to $38.05 on Thursday, while Potash fell 3.21% to $42.25.

The price of crude oil rose 43 US cents to US$104.55 a barrel in New York, while gold jumped US$18.20 to US$1,660.50 an ounce.

The Canadian dollar slipped five basis points to US$1.0163 after hitting a seven-month high against the U.S. greenback the previous day.

Futures markets are “starting to price in the probability of a Bank of Canada rate hike by the fall, and that’s really driving the Canadian dollar’s strength,” Shane Enright, executive director at Canadian Imperial Bank of Commerce’s CIBC World Markets unit in Toronto, told Bloomberg.

“The fact that we’re outperforming the other commodity currencies is a function of the rate story.”

In the U.S., initial jobless claims for the previous week came in higher than expected, but so did pending home sales for March, injecting some optimism into the U.S. housing market.

“The 4.1% jump in U.S. pending home sales in March to two-year highs flags a bounce in existing home sales this spring, even if many buyers renege on their offers (a major drawback of lower house prices is that banks want larger deposits to backstop equity),” said Sal Guatieri, an economist with BMO Capital Markets. “While the warmest March on record no doubt pulled forward some sales, the trend is likely improving.”

There was choppy trading on U.S. markets Thursday morning after the jobless claims report and after a number of large U.S. companies, including UPS and Exxon Mobile missed estimates with their quarterly earnings reports. Still, the Dow Jones industrial average gained 113.90 points, or 0.87%, on the day, closing at 13,204.62, and the Nasdaq composite rose 20.98 points, or 0.69%, to 3,050.61.

“We’re more confident,” Andrew Milligan, the Edinburgh-based head of global strategy at Standard Life Investments Ltd., told Bloomberg. “The market got into this earnings season a little too pessimistic. The economy has surprised a little more positively. The underlying concept of an economy moving forward is pretty much accepted by people.”

Canada’s junior Venture exchange closed at 1,393.24, a gain of 22.12 points, or 1.61%.

Here’s the news investors were watching today:

Canada’s banking watchdog to oversee housing agency

RIM turnaround could take three to five years, says Fairfax CEO

Potash Corp. misses expectations as demand slumps

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

• Bank of Canada governor Mark Carney speaks in Ottawa
• Ottawa’s fiscal monitor

UNITED STATES

8:30 a.m.

• Real GDP (Q1): Economists expect 2.5% growth annualized
• Employment cost index: Economists expect 0.5% rise

9:55 a.m.

• University of Michigan Consumer Sentiment index: Economists expect a reading of 75.7, flat with last month

CORPORATE NEWS

CANADA

• TransCanada Q1 earnings: Analysts expect 56¢ a share
• Agnico-Eagle Q1 earnings: Analysts expect 53¢
• Canfor Corp Q1 earnings: Analysts expect 10¢

UNITED STATES

• Chevron Q1 earnings: Analysts expect US$3.14 a share
• Merck & Co Q1 earnings: Analysts expect 97¢
• The Procter & Gamble Group Q1 earnings: Analysts expect 93¢
• Weyerhaeuser Co Q1 earnings: Analysts expect 0¢
• Corning Q1 earnings: Analysts expect 28¢

Canada’s benchmark stock index posted its first positive close in four sessions, driven by solid earnings from U.S. companies including Caterpillar, and Apple Inc., which reported after the close on Tuesday.

Here are the closing numbers

TSX — 12111.06 1.09% +130.96

S&P 500 — 1390.69 1.36% +18.72

Dow — 13090.72 0.69% +89.16

Nasdaq — 3029.63 2.3% +68.03

“What you’re generally seeing is a bit of a bounceback after a few days of selling,” Brian Huen, a managing partner at Red Sky Capital Management Ltd. in Toronto, told Bloomberg. “Earnings season seems to be in decent shape. The majority of companies are coming in better than expected, which is certainly helping sentiment today.”

The S&P/TSX had been in a positive holding pattern, along with U.S. indexes, while investors awaited statements from the U.S. Federal Reserve’s Open Market Committee, followed by a quarterly briefing. All markets continued to advance following the releases, in which the Fed essentially held its line on the state of the economy, saying it is growing gradually. Chairman Ben Bernanke said, however, that the central bank is “entirely prepared” to add more stimulus to the economy if necessary.

“The Fed sees the economy as making progress, and is prepared to embark on more unconventional monetary easing, but only if the unemployment rate starts to stray from its downward path,” said TD Economics economist Chris Jones in an afternoon note.

“The bar has been set high. Given that the labour market is making decent progress, risking higher inflation for faster gains in economic growth — gains that Bernanke views as ‘doubtful’ at best — would, in the chairman’s own words, be ‘reckless’ and put the central bank’s credibility at stake.”

The Dow Jones increased its gains for the day following the Fed statements, closing at 13,090.72, up 89.16 points, or 0.69%, while the Nasdaq composite rose 68.03 points, or 2.30%, to 3,029.63.

“The Fed is providing an insurance policy to the economy,” Ann Miletti, senior portfolio manager for Wells Fargo Advantage Funds in Menomonee Falls, Wisc., told Bloomberg. “There’s a sense that things are improving, yet there’s some instability. The Fed is saying that it will be there to help keep things going. Earnings have been strong. The market likes it.”

The price of crude oil rose Wednesday to US$104.12 a barrel, an increase of 57 US cents a barrel, while gold fell US$1.50 to US$1,642.30 an ounce.

The Canadian dollar continued its advance, rising for the fourth consecutive session to close at US$1.0165, a gain of 47 basis points — a seven-month high against the U.S. greenback as investors embraced risk assets.

Canada’s junior Venture exchange eked out a small gain on Wednesday, rising 5.35 points or 0.39%, to 1,371.12.

Here’s the news investors were watching today:

Top 4 takeaways from the U.S. Fed’s rate decision

Britain slammed by first double-dip recession since 70s

Encana blows past earnings estimates

Apple surges as earnings defy expectations yet again

ON DECK THURSDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Survey of employment, payrolls and earnings (Feb)

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 375,000, down from the week before
• Real GDP by industry (2011)

10 a.m.

• Pending home sales: Economists expect 1% rise on the month, 7.3% rise year over year

CORPORATE NEWS

CANADA

• Shoppers Drug Mart Q1 earnings: Analysts expect 57¢ a share
• Imperial Oil Q1 earnings: Analysts expect 95¢
• Husky Energy Q1 earnings: Analysts expect 52¢
• Potash Corp Q1 earnings: Analysts expect 65¢
• TransAlta Q1 earnings: Analysts expect 27¢
• Precision Drilling Corp Q1 earnings: Analysts expect 45¢
• Inmet Mining Q1 earnings: Analysts expect $1.23
• Lundin Mining Q1 earnings: Analysts expect 8¢

UNITED STATES

• Starbucks Q2 earnings: Analysts expect 39¢ a share
• The Dow Chemical Company Q1 earnings: Analysts expect 58¢
• Exxon Mobil Corp Q1 earnings: Analysts expect US$2.01
• PepsiCo Q1 earnings: Analysts expect 67¢
• Goodrich Corp Q1 earnings: Analysts expect US$1.64
• Kellogg Co Q1 earnings: Analysts expect 99¢
• Lockheed Martin Q1 earnings: Analysts expect US$1.70
• Moody’s Corp Q1 earnings: Analysts expect 68¢
• Occidental Petroleum Corp Q1 earnings: Analysts expect US$1.96
• Safeway Inc Q1 earnings: Analysts expect 30¢
• Time Warner Cable Inc Q1 earnings: Analysts expect US$1.24
• United Parcel Service Q1 earnings: Analysts expect US$1.01

North American markets made small gains at midday on Wednesday as investors awaited a policy statement from the Federal Reserve Open Market Committee meeting in Washington.

In Toronto, the S&P/TSX composite was on a positive track after three consecutive negative sessions, up about 57 points, or 0.48%, to 12,037 at midday.

The price of crude oil was down 21 US cents to US$103.34 a barrel in midday trading in New York, and gold had fallen US$4.80 to US$1,639.00 an ounce.

The Canadian dollar was ahead 35 basis points to US$1.0156 US in late-morning trading, its highest point in about eight months.

Wednesday was another day short on economic data to move the markets. In Canada, the Teranet-National Bank home price index showed prices edged down slightly in February, though they were still 6.1% above the levels a year earlier. In the U.S., a report showed durable goods orders dropped 4.2% in March — much worse than the 1.5% decline analysts had expected.

“The next major turning point would be if (Federal Reserve chair Ben Bernanke) were to talk about the recovery doing much better and taking away a bit of the punch bowl,” Paul Hand, managing director at RBC Capital Markets, told Reuters. “People will dissect his comments, and it could jiggle the market.”

At midday the Dow Jones industrial average was up about 71 points, or 0.54%, to 13,072.06, while the Nasdaq had gained 55 points, or 1.87%, to 3,017.

Asian markets were mixed, with Tokyo’s Nikkei gaining 0.98% and Hong Kong’s Hang Seng falling 0.15%. In Europe, markets rose across the board: London’s FTSE gained 0.16%, the CAC in Paris rose 2.02% and Frankfurt’s DAX advanced 1.73%.

Canada’s benchmark stock index slid for a third straight session on Tuesday, following up the previous day’s sharp decline with a small dip on a day largely lacking in strong economic data to sway investor sentiment.

Here are the closing numbers

TSX — 11980.10 -0.07% -8.85

S&P 500 — 1371.97 0.37% +5.03

Dow — 13001.56 0.58% +74.39

Nasdaq — 2961.60 -0.3% -8.85

The S&P/TSX composite index erased earlier gains to close at 11,980.10, a drop of 8.85 points, or 0.07%. The 10 sub-indexes were evenly split between gainers and losers, with the latter group led by consumer goods, down 1.01%, and technology, off 0.81%.

The price of crude oil rose 44 US cents to US$103.55 a barrel, while gold advanced US$11.20 to US$1,643.80 an ounce.

The Canadian dollar rose for the third straight session, gaining 30 basis points to close at US$1.0120.

Most global markets fell sharply on Monday on renewed fears of a eurozone debt crisis after the French president lost the first round of elections there and the Dutch government collapsed amid a revolt over austerity measures in the budget.

Canada’s only piece of economic data on Tuesday was a disappointing report from Statistics Canada showing that retail sales declined in February, causing some analysts to revise downward their forecasts for economic growth for the quarter.

Scotia Capital economists Derek Holt and Dov Zigler say the report “more than undoes the positive effects from (Monday’s) strong wholesale trade data.” Moreover, they add, “consumption is expected to be the major driver of Canada GDP over the next number of quarters, so a weak showing there would be a significant impediment to accelerating growth.”

Economic news from the U.S. on Tuesday included better-than-expected earnings from companies such as AT&T and 3M Co., and a positive report on new home sales suggesting cheaper borrowing costs are helping the country’s embattled housing market to stabilize.

The Dow Jones industrial average rose 74.93 points, or 0.58%, to 13,001.56 on Tuesday, while the tech-heavy Nasdaq fell 8.85 points, or 0.30%, to 2,961.60 as Apple Inc. shares slipped ahead of the close, but rose after reporting second-quarter revenue of US$39.2-billion, beating estimates of US$36.8-billion, according to Thomson Reuters I/B/E/S.

“Stocks have room to move higher,” David Kelly, chief market strategist at JPMorgan Funds in New York, told Bloomberg. “Earnings are healthy. The bar has been lowered so far that you can just walk over it. Housing is on the mend. A sign of a market top is when people are exuberant. There’s no exuberance as witnessed (Monday).”

Some Canadian companies reporting better-than-expected earnings saw those positive reports reflected in their stock prices, including Celestica, which rose 5.86% to $8.85, Teck Resources, which gained 1.47% to $35.85, and Canadian National Railway, which reported after the market closed Monday and whose share price climbed 2.33% to $81.24 on Tuesday.

Canada’s junior Venture exchange closed at 1,365.77, a dip of 5.26 points, or 0.38%.

Here’s the news investors were watching today:

How to trade on Apple’s earnings

U.S. housing rebound could take an entire generation: Shiller

Google launches long-rumoured online storage service Google Drive

Why REITs are roaring despite rate threat

ON DECK WEDNESDAY

ECONOMIC NEWS

• U.S. Federal Reserve interest rate announcement at 12:30 p.m. followed by press conference with chairman Ben Bernanke at 2:15 p.m.

UNITED STATES
8:30 a.m.

• Durable goods orders (March): Economists expect a decline of 1.7%

CORPORATE NEWS

CANADA

• EnCana Corp Q1 earnings: Analysts expect 17¢ a share
• Cenovus Energy Q1 earnings: Analysts expect 50¢ a share
• Goldcorp Inc Q1 earnings: Analysts expect 53¢ a share
• Nexen Inc Q1 earnings: Analysts expect 44¢ a share
• Sherritt Intl Q1 earnings: Analysts expect 16¢ a share
• CGI Group Q2 earnings: Analysts expect 41¢ a share

UNITED STATES

• The Boeing Company Q1 earnings: Analysts expect 92¢ a share
• Dr Pepper Snapple Group Inc Q1 earnings: Analysts expect 48¢ a share
• Harley-Davidson Q1 earnings: Analysts expect 72¢ a share
• Eli Lilly and Co Q1 earnings: Analysts expect 78¢ a share
• Motorola Solutions Inc Q1 earnings: Analysts expect 54¢ a share
• Sprint Nextel Corp Q1 earnings: Analysts expect a loss of 41¢ a share
• The Nasdaq OMX Group Q1 earnings: Analysts expect 64¢ a share

There was some rebound on North American stock markets early Tuesday following steep losses a day earlier as attention was again centred on Europe.

Shortly after the open, the Toronto Stock Exchange’s S&P/TSX composite index was up 27.58 points, or 0.23%, 12,016.53. On Monday, the TSX was down 158.33 points, or 1.3%.

Amid various other issues in Europe, the Netherlands government resigned Monday after failing to reach an agreement with opposition lawmakers on austerity measures.

On Tuesday, investors could at least be encouraged by some higher commodity prices on the New York Mercantile Exchange. Crude oil was up 46 cents US to $103.57 US a barrel. Gold was ahead $13.20 US to $1,645.80 US an ounce.

The Canadian dollar was up six basis points to $1.0097 US.

In Canadian economic news, it was learned that retail sales were down 0.2% in February, the first decline in seven months and coming short of the 0.1% gain anticipated by economists.

Meanwhile, the S&P/Case-Shiller index of home prices in 20 major areas of the U.S. was down 3.5% from a year earlier, a slightly higher decline than the 3.4% expected by economists in a Bloomberg poll. But it was the smallest drop in a year, indicating some stability was returning to the U.S. housing market.

On the U.S. stock market, the Dow Jones industrial average was up 47.22 points, or 0.37%, to 12,974.39 in early trading Tuesday. The Nasdaq composite index was relatively flat with a gain of 0.88 point, or 0.03%, to 2,971.33. A day earlier, the Dow fell 102.09 points, or 0.78%, while the Nasdaq was down 30 points, or 1%.

Overseas markets were mixed Tuesday.

The United Kingdom’s FTSE index was down 6.02 points, or 0.11%, to 5,659.55. France’s CAC was up 16.57 points, or 0.53%, to 3,114.94. In Germany, the DAX fell 10.64 points, or 0.16%, to 6,512.36.

Japan’s Nikkei index was down 74.13 points, or 0.78%, to 9,468.04. In Hong Kong, the Hang Seng was up 52.77 points, or 0.26%, to 20,677.16. Mainland China’s Shanghai composite rose a quarter-point, or 0.01%, to 2,388.83.

Renewed fears of a European debt crisis, which have been quietly simmering for the last few weeks, started to boil over on Monday as the backlash against austerity measures agreed to by eurozone countries in December intensified, spreading to France and the Netherlands.

Here are the closing numbers

TSX — 11988.95 -1.3% -158.33

S&P 500 — 1366.94 -0.84% -11.59

Dow — 12927.17 -0.78% -102.09

Nasdaq — 2970.45 -1.0% -30.00

In Toronto, the benchmark S&P/TSX composite index fell 158.33 points, or 1.30%, to 11,988.95. All 10 of the sub-indexes declined, led by materials, down 2.94%, and technology, which lost 2.55%.

The price of crude oil fell US77 cents to US$103.11 a barrel on Monday, and gold fell US$10.20 to US$1,632.60 an ounce.

The Canadian dollar dipped in morning trading but by afternoon had erased its losses, and closed the day with a gain of 16 basis points to US$1.0091.

“Political wrangling over budget cuts in the Netherlands unsettled markets Monday, as investors worried about that nation’s ability to retain a triple-A credit rating. But a shrinking pool of safe-haven countries is music to the Canadian dollar’s ears, as it generally outperformed, despite weak commodity prices,” said BMO Capital Markets economist Sal Guatieri.

“After France and Austria were downgraded earlier this year by S&P, Canada is among a select group of about a dozen countries that are deemed triple-A by all three major rating agencies.”

Markets around the world dipped sharply on Monday as the bad news piled up, including a bigger-than-expected contraction in eurozone services and manufacturing data, and a forecast that data will show China’s production has contracted for a sixth month.

“The preliminary reading for the euro-area PMIs fell sharply in April, suggesting the region remained in recession in Q2,” said Benjamin Reitzes, an economist with BMO Capital Markets. “Somewhat worryingly, much of the manufacturing weakness was in Germany, which has been the region’s pillar of strength through the debt turmoil. . . . If the German manufacturing index doesn’t rebound, the euro area could be in for a deeper recession than expected. That could open the door to further ECB easing in the second half of the year.”

Also on Monday, French President Nicolas Sarkozy lost the first round of the presidential elections to Francois Hollande, and the Dutch prime minister offered to resign amid a revolt against austerity measures planned for that country.

“Politics will undoubtedly provide the pepper in this week’s financial melting pot,” said Bill Blain, co-head of the special situations group at Newedge Group Ltd. in London, told Bloomberg. “A turnover in the Dutch government, and the inevitable swing toward more skeptical anti-Europe politics could well generate increased uncertainty.”

The Dow Jones industrial average lost 102.09 points, or 0.78%, closing at 12,927.17 on Monday, while the Nasdaq composite fell 30.00 points, or one%, to 2,970.45.

Canada’s junior Venture exchange slipped 28.91 points, or 1.92%, to 1,371.03.

Here’s the news investors were watching today:

World stocks fall as European fears grip investors

Facebook to buy US$550-million in AOL patents from Microsoft

RIM hires law firm to handle restructuring

ON DECK TUESDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Retail sales (Feb): Economists expect 0.1% rise

UNITED STATES

• U.S. Federal Reserve’s policy meeting begins

9 a.m.

• S&P Case-Shiller Home Price Index (Feb): Economists expect a 0.2% rise from the month before, 3.40% decline year over year

10 a.m.

• New home sales: Economists expect 1.6% rise
• House price index: Economists expect 0.1% rise
• Conference Board consumer confidence index (April): Economists expect a reading of 69.6, down slightly from the month before

CORPORATE NEWS

CANADA

• Rogers Communications Q1 earnings: Analysts expect 79¢ a share
• Teck Resources Q1 earnings: Analysts expect 92¢ a share
• Celestica Inc Q1 earnings: Analysts expect 22¢ a share
• FirstService Q1 earnings: Analysts expect 19¢ a share

UNITED STATES

• 

  Apple Inc Q2 earnings: Analysts expect US$9.86 a share

• The Hershey Company Q1 earnings: Analysts expect 80¢ a share
• 3M Company Q1 earnings: Analysts expect US$1.48 a share
• AT&T Q1 earnings: Analysts expect 57¢ a share
• The McGraw-Hill Companies Q1 earnings: Analysts expect 47¢ a share
• Western Union Co Q1 earnings: Analysts expect 40¢ a share
• United States Steel Corp Q1 earnings: Analysts expect 44¢ a share
• T Rowe Price Group Inc Q1 earnings: Analysts expect 75¢ a share
• Life Technologies Corp Q1 earnings: Analysts expect 15¢ a share

Canada’s benchmark stock index bucked a near-global trend on Thursday, posting a modest gain while other major indexes lost ground due to disappointing economic data releases and renewed fears of a eurozone debt crisis.

Here are the closing numbers

TSX — 12153.69 +0.2% +24.80

S&P 500 — 1376.92 -0.59% -8.22

Dow — 12964.10 -0.53 -68.65

Nasdaq — 3007.56 -0.79% -23.89

In Toronto the S&P/TSX composite index rose 24.81 points, or 0.20%, to 12,153.69. Six of the 10 sub-indexes advanced, led by technology, which gained 2.19% thanks in part to Research in Motion, which rose 2.6% to $13.42 on speculation the beleaguered tech giant is ready to hire a financial adviser.

The price of crude oil fell US40 cents to US$102.27 a barrel, while gold, having pared earlier gains, closed at US$1,641.40 an ounce, up US$1.80.

“We’re in a general uptrend economically and we do expect that to continue,” Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, told Bloomberg. “Canada is a lot more on the resources side. When resources do well, that’s what drives the Canadian market.”

The Canadian dollar fell 40 basis points to US$1.0048.

A “vague rumour” of a sovereign downgrade in France, combined with disappointing U.S. initial jobless claim for the previous week, was enough to bring European markets lower on Thursday, said CMC Markets UK analyst Michael Hewson.

“The fact is given the current economic backdrop in Europe investors appear reluctant to take on too much risk, with the end result that we get sharp moves higher and then lower, without too much indication of an overall long term directional bias,” Hewson said in an afternoon note.

Street-beating earnings reports from companies such as EBay and Morgan Stanley were overshadowed by disappointing economic data from the U.S. on Thursday, including a lower-than-estimated Federal Reserve Bank of Philadelphia manufacturing index, and an unexpected drop in existing home sales.

While investors may have seen the drop in sales as a sign that the economic recovery in the U.S. is slowing, BMO Capital Markets economist Jennifer Lee points out that the U.S. housing market is still in recovery mode.

“The early spring likely brought sales forward and now, we’re seeing a pause in sales activity. But record high affordability and very low prices are still an attractive combination for potential buyers, both domestic and foreign. Bottom Line: The housing recovery is coming along, but in fits and starts,” Lee said.

The Dow Jones industrial average closed at 12,964.10, down 68.65 points, or 0.53%, after a choppy trading day. The Nasdaq composite dropped 23.89 points, or 0.79%, to 3,007.56.

Canada’s junior Venture exchange fell 15.06 points, or 1.07%, to 1,396.77.

While markets in Asia were mixed, European indexes were lower across the board: London’s FTSE was just below flat with a dip of 0.01%, the CAC in Paris fell 2.05% and Frankfurt’s DAX slipped 0.90%.

Here’s the news investors were watching today:

Canada to keep AAA rating despite coming downgrade wave: Citi

CP Rail shareholders favour Pershing: poll

RIM said to be near choosing JPMorgan to handle review

Bank of America, Morgan Stanley beat earnings expectations

ON DECK FRIDAY

• G20 finance ministers and central bankers meet in Washington
• IMF and World Bank hold meetings in Washington

ECONOMIC NEWS

CANADA

8:30 a.m.

• Consumer Price Index (March): Economists expect 0.5% rise on the month, 2% rise on the year
• Leading indicators (March): Economists expect 0.5% rise from the month before

CORPORATE NEWS

UNITED STATES

• General Electric Co Q1 earnings: Analysts expect 33¢ a share
• Honeywell Q1 earnings: Analysts expect 99¢ a share
• McDonald’s Corp Q1 earnings: Analysts expect US$1.23 a share
• Kimberly-Clark Q1 earnings: Analysts expect US$1.17 a share

With little in the way of economic data to move the markets on Wednesday, influences on investor sentiment included an increase in the percentage of bad debts held by Spanish banks and disappointing earnings reports from two U.S. tech giants.

Here are the closing numbers

TSX — 12128.89 -0.07% -8.05

S&P 500 — 1385.14 -0.41% -5.64

Dow — 13032.75 -0.63% -82.79

Nasdaq — 3031.45 -0.37% -11.37

In Toronto, the benchmark S&P/TSX composite index fell by a modest 8.05 points, or 0.07%, to 12,128.89. Only two of the 10 sub-sectors declined: materials, down 0.90%, and energy, which fell 0.46%.

The price of crude oil fell to US$102.67 a barrel, a drop of US$1.53, while gold slipped US$11.50 to US$1,639.60.

“Basic materials stocks had a bit of a bounce (Tuesday) but they’re giving some of that back, especially in gold,” Bob Decker, a money manager at Aurion Capital in Toronto, told Bloomberg on Wednesday. “At the same time, retail stocks are stronger today. Financials are getting a little bit of a bid as well, as fund flows are looking for dividend-paying stocks.”

The Canadian dollar lost 11 basis points after gaining nearly a full cent the previous session, closing Wednesday at US$1.0088.

Although the Canadian dollar tends to rise and fall with commodity prices, oil in particular, Bank of Canada governor Mark Carney said Wednesday that treating the loonie as a commodity currency could be a “recipe for losing money.”

Delivering the central bank’s quarterly economic outlook on Wednesday, Carney said it is “simplistic” to talk about the dollar as a commodity currency, “let alone a currency that moves consistent with one commodity.”

Still, BMO Capital Markets deputy chief economist Douglas Porter notes that the charts tell a different story.

“By at least one measure, commodity prices have accounted for 93% of the move in the Canadian dollar in the past decade … leaving 7% for the non-simplistic to explain,” Porter wrote in an afternoon commentary.

Market movers on Wednesday included a report that bad debt held by Spanish banks grew between March and April, renewing fears of a eurozone debt crisis. Also, IBM earnings came in well short of analysts’ expectations, while Intel Corp. forecast gross margins that disappointed analysts, weighing on U.S. markets.

The Dow Jones industrial average fell 82.79 points, or 0.63%, to 13,032.75, while the Nasdaq composite slipped 11.37 points, or 0.37%, to 3,031.45.

Canada’s junior Venture exchange closed at 1,411.82, a dip of 10.47 points, or 0.74%.

Two Canadian companies making big jumps on Wednesday were Montreal-based Alimentation Couche-Tard and Vancouver’s Ivanhoe Mines.

Couche-Tard shares rose 15.45% to $39.60 after the convenience store company announced it would buy Norway’s Statoil Fuel and Retail ASA for $2.8 billion US.

Ivanhoe Mines rose 15.49% to $13.49 after striking a $6-billion deal with majority shareholder Rio Tinto Group to fund its copper mine in Mongolia.

Here’s the news investors were watching today:

Canada caught in oil price pinch, BoC warns

Couche-Tard enters Europe with $2.8B Norway buy

Friedland resigns from Ivanhoe Mines in Rio Tinto shake-up

Chesapeake shares tumble 10%

ON DECK THURSDAY

ECONOMIC NEWS

• Finance Minister Jim Flaherty takes part in panel discussion on kick-starting economic growth in Washington at 1:30 p.m.
• IMF head Christine Lagarde and World Bank president Robert Zoellick hold press conferences Thursday morning in Washington, ahead of Friday’s G20 meeting

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 370,000 claims, down from week before

10 a.m.

• Existing housing sales (March): Economists expect 0.7% rise from month before
• Philadelphia Fed index (April): Economists expect a reading of 12, down slightly from month before
• Leading indicators (March): Economists expect 0.2% rise from the month before

CORPORATE NEWS

UNITED STATES

• Bank of America Corp Q1 earnings: Analysts expect 12¢ a share
• Morgan Stanley Q1 earnings: Analysts expect 43¢
• DuPont Q1 earnings: Analysts expect US$1.55
• Microsoft Q3 earnings: Analysts expect 57¢
• Verizon Q1 earnings: Analysts expect 58¢
• The New York Times Company Q1 earnings: Analysts expect 2¢
• Sherwin-Williams Q1 earnings: Analysts expect 72¢
• Capital One Finance Corp. Q1 earnings: Analysts expect US$1.38
• Peabody Energy Corp Q1 earnings: Analysts expect 55¢

Canadian stocks bounced back after two losing sessions to post strong gains Wednesday after the Bank of Canada and the International Monetary Fund boosted their outlook for growth.

Here are the closing numbers

TSX — 12136.94 0.83% +99.35

S&P 500 — 1390.78 1.55% +21.21

Dow — 13115.54 1.5% +194.13

Nasdaq — 3042.82 1.82% +54.42

The TSX closed the trading day ahead 99.35 points, or 0.83%, to 12,136.94. All of its 10 subindexes and 176 of 253 member companies gained value.

The world’s major markets all rose sharply.

Energy stocks led the Canadian advance after oil gained US$1.27 to US$104.20 a barrel on expectations that stronger global growth will increase demand.

The International Monetary Fund forecast Tuesday in its World Economic Outlook that the global economy will expand 3.5% in 2012 and 4.1% in 2013, up from previous estimates of 3.3% for 2012 and four% for 2013.

Meanwhile the Bank of Canada upwardly revised its forecast for growth in Canada to 2.4% from 2% in January.

It did so in announcing that it was maintaining its key lending rate at 1%, while cautioning that “some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.”

Those words sent the loonie almost one cent higher, up 96 basis points to US$1.0099 on expectations rate hikes will come sooner than later.

Gold was little changed Tuesday, adding US$1.40 to US$1,651.10 an ounce.

“Stock markets on both sides of the Atlantic have been rallying today, propelled by a number of positive indicators,” said CMC Markets analyst Colin Cieszynski.

“In Europe, Spain had a successful T-bill auction, raising 3.18 billion euros, which was more than its 2-3 billion target range.

“Most significantly for markets, however, was the news that the IMF raised its forecast for global economic growth for this year.”

Markets also warmed to a report out of Germany showing investor confidence unexpectedly rose to a two-year high.

South of the border, the more positive economic outlook, and what seems to be shaking up to be a strong earnings season, paced markets to strong gains.

On Tuesday earnings from Goldman Sachs, Coca-Cola and Johnson & Johnson all beat analyst estimates, creating optimism for the remainder of the quarterly profit reports.

“People were very pessimistic, marking down earnings expectations so there was plenty of room for the market to be positively surprised,” Paul Zemsky, the New York-based head of asset allocation at ING Investment Management, told Reuters.

Of the 39 S&P 500 companies that have reported earnings, 74.4% beat estimates, Reuters reported.

The Dow Jones industrial average climbed 194.13, or 1.5%, to 13,115.54 while the Nasdaq rose 1.82%, or 54.42 points, to 3,042.82.

European shares all rose sharply. London’s FTSEadded 1.78% to 5,766.95, while the Paris CAC surged 2.72% to 3,292.51 and Frankfurt’s DAX added 2.65% to 6,801.00.

Canada’s Venture composite index slipped 10.16 points, or 0.71%, to 1,422.30.

Here’s the news investors were watching today:

Bank of Canada warns it may have to hike rates

Top 6 takeaways from the Bank of Canada’s decision

Sino-Forest founder Chan resigns in corporate shakeup

Huge beat by Goldman Sachs

ON DECK WEDNESDAY

ECONOMIC NEWS

CANADA

10:30 a.m.

• Bank of Canada monetary policy report

CORPORATE NEWS

CANADA

• Metro Inc Q2 earnings: Analysts estimate 92¢ a share

UNITED STATES

• eBay Q1 earnings: Analysts estimate 52¢ a share
• Yum! Brands Inc. Q1 earnings: Analysts estimate 73¢ a share
• Abbott Q1 earnings: Analysts estimate 99¢ a share
• American Express Q1 earnings: Analysts estimate US$1 a share
• BNY Mellon Q1 earnings: Analysts estimate 52¢ a share
• Haliburton Co Q1 earnings: Analysts estimate 86¢ a share
• Marriott International Q1 earnings: Analysts estimate 29¢ a share
• Stanley Black & Decker Inc Q1 earnings: Analysts estimate US$1.13 a share
• Textron Inc. Q1 earnings: Analysts estimate 37¢ a share

North American markets rose for a second day on Thursday despite a mixed bag of economic news.

Here are the closing numbers

TSX — 12214.65 +1.56% +187.89

S&P 500 — 1387.57 +1.38% +18.86

Dow — 12986.58 +1.41% +181.19

Nasdaq — 3055.55 +1.3% +39.09

In Toronto, the benchmark S&P/TSX composite index jumped 187.89 points, or 1.56%, to 12,214.65. Eight of the 10 sub-indexes advanced, led by materials, up 3.04%, and energy, up 1.88%.

The price of crude oil rose US94 cents to US$103.64 a barrel, and gold gained US$20.30 to close at US$1,680.60 an ounce.

“One of the catalysts for the strong market conditions seems to have been accelerating domestic loan growth in China: domestic loans grew by 1,011-billion yuan ($159.5 billion), the second-highest number on record for March (the highest ever March new loan number was recorded in March 2009, when the government encouraged banks to stimulate the economy with a whopping 1,891-billion yuan in new loans),” wrote Scotia Capital economists Derek Holt and Dov Zigler in a note. “This implies that there will be ample credit in China during 2012 after slow loan growth during January and February had sent jitters that 2011’s reserve ratio requirement cuts had been too severe.”

The situation in China gave Canadian resource companies a boost on Wednesday: copper-producer Teck Resources rose 4.41% to $36.93. Eldorado Gold gained 11.31% to $14.37 after it forecast output will double in five years and costs will be lower than estimated. Goldcorp rose 2.40% to $41.79.

Economic data on Thursday included February trade figures for both Canada and the U.S. Canada posted its fourth consecutive trade surplus, but sharply lower than the $2.2-billion analysts had forecast, at $292-million. The U.S. reported a narrower trade deficit than analysts had forecast, but it was also disappointing, in that both imports and exports declined in February. The U.S. Labor Department also announced initial jobless claims from the previous week were higher than expected.

Still, comments from U.S. Federal Reserve officials suggesting that the central bank is in no hurry to raise interest rates overcame the disappointing economic data.

The Dow Jones industrial average rose 181.19 points, or 1.41%, to 12,986.58 on Thursday, while the Nasdaq gained 39.09 points, or 1.30%, to 3,055.55.

“We have the ingredients for a better tone to the market,” Keith Wirtz, chief investment officer for Fifth Third Asset Management in Cincinnati, told Bloomberg. “There’s less of an overbought condition and we might have a good earnings season and a couple of Fed officials are providing some rhetoric. If we see erosion of economic conditions, it’s likely we’re going to see action by the Fed.”

Canada’s junior Venture exchange gained 37.37 points, or 2.60%, to 1,472.50.

The Canadian dollar jumped nearly a cent on Thursday, rising 97 basis points to US$1.0055.

“The market is comfortable in selling the U.S. dollar today, buying equities and commodities,” Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto, told Bloomberg. “The Canadian dollar . . . has been an outperformer.”

Here’s the news investors were watching today:

Go long on natural gas, prices won’t stay down forever

Why Apple will probably win its e-book legal battle

Canadians still piling on debt

ON DECK FRIDAY

ECONOMIC NEWS

• China releases data on gross domestic product, industrial output, urban investment and retail sales

UNITED STATES

8:30 a.m.

• Consumer price index (March): Economists expect 0.3% rise on the month, 2.7% on the year

9:55 a.m.

• University of Michigan consumer sentiment index: Economists expect reading of 76.2, unchanged from last month

CORPORATE NEWS

CANADA

• Shaw Communications Inc. Q2 earnings: Analysts expect 38 cents a share

UNITED STATES

• JPMorgan Chase & Co. Q1 earnings: Analysts expect US$1.16 a share
• Wells Fargo & Co Q1 earnings: Analysts expect 72 cents a share

Canada’s benchmark stock index rose for the first time in six sessions on Wednesday, halting a slide that took the index to its lowest point since the end of December 2011.

Here are the closing numbers

TSX — 12026.76 0.77% +91.47

S&P 500 — 1368.71 0.74% +10.12

Dow — 12805.39 0.7% +89.46

Nasdaq — 3016.46 0.84% +25.24

The S&P/TSX composite index closed at 12,026.76, a gain of 91.47 points, or 0.77%. Eight of the 10 sub-indexes advanced, led by industrials, up 1.79%, and consumer services, which gained 1.52%.

The S&P/TSX had risen 3.7% in the first quarter of the year, but had been slowly giving back those gains ever since the first of March, and on Tuesday closed 0.16% below its close on the last trading day of 2011.

The price of crude oil gained US$1.68 to US$102.70 a barrel, while gold slipped 40 US cents to US$1,660.30 an ounce.

Wednesday’s positive close was a “normal trading bounce” which “may be more related to bargain hunting and profit taking on short trades than renewed enthusiasm,” said analyst Colin Cieszynski of CMC Markets.

“It’s a technical bounce off a pretty oversold market in the last few days,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ont., told Bloomberg.

“It’s exactly what we’ve seen the last two years: A crescendo into April in terms of risk rally for a few months, and then economic data starts a sell-off.”

Contributing to positive investor sentiment on Wednesday were better-than-expected first-quarter earnings released by Alcoa after the market close on Tuesday, which started off earnings season on a high note. As well, a member of the European Central Bank’s executive board ignited speculation that the central bank could be willing to step in to slow the eurozone’s renewed debt crisis — possibly by restarting bond purchases for Spain. Surging bond yields in Spain and Italy in the past few days have renewed concerns about the region’s debt.

The U.S. Federal Reserve’s Beige Book released Wednesday afternoon was encouraging, but contained nothing market-moving, as it concluded that the U.S. economy is expanding at a “modest-to-moderate pace.”

The Dow Jones industrial average rose 89.46 points, or 0.70%, to 12,805.39, and the Nasdaq composite ended the day at 3,016.46, a gain of 25.24 points, or 0.84%.

“The environment is still very positive for stocks,” Robert Hagstrom, fund manager at Legg Mason Capital Management Inc., said in an interview on Bloomberg Television. Bull markets “need corrections, need a pullback, in order to be sustainable. We think about that all the time. Until we actually go through it,” he said. Then “it’s the risk-off traders, or Chicken Little, maybe, that the world is coming to an end. But it’s not coming to an end.”

The Canadian dollar slipped one basis point to 99.58 US cents.

Canada’s junior Venture exchange edged up 4.02 points, or 0.28%, to 1,435.12.

Here’s the news investors were watching today:

Canada’s condo craze continues

Does Microsoft want a piece of RIM?

Nokia forced to give its ‘iPhone killer’ away because of software bug

Best Buy CEO resigned over personal conduct investigation, company says

ON DECK THURSDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Merchandise trade balance (Feb): Economists expect $2.2-billion
• New housing price index (Feb): Economists expect 0.2% gain from the month before

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 355,000 claims, down slightly from the week before
• Goods and services trade balance (Feb): Economists expect a deficit of $51.8-billion
• Producer price index (March): Economists expect 0.3% gain on the month, 3.1% on the year

2 p.m.

• Treasury Budget (March)

CORPORATE NEWS

CANADA

• Cogeco Cable Q2 earnings: Analysts expect $1.02 a share
• Cogeco Inc. Q2 earnings: Analysts expect 96 cents a share
• Corus Entertainment Inc Q2 earnings: Analysts expect 37 cents a share

UNITED STATES

• Google Q1 earnings: Analysts expect US$9.65 a share

Canada’s benchmark stock index fell for the fifth consecutive session on Tuesday, erasing its gains for the year and dipping 0.16% below its close on the last trading day of 2011.

Here are the closing numbers

TSX — 11935.29 -0.69% -83.21

S&P 500 — 1358.59 -1.71% -23.61

Dow — 12715.93 -1.65% -213.66

Nasdaq — 2991.22 -1.83% -55.86

The S&P/TSX composite index fell 83.21 points, or 0.69%, to 11,935.29 as the fallout from Friday’s disappointing U.S. jobs report continued to hit the markets; surging Spanish and Italian bond yields fuelled worries of a renewed eurozone debt crisis; and concerns over Chinese trade figures also weighed on investor sentiment.

Nine of the 10 sub-indexes declined, led by energy, down 1.74%, and industrials, off 1.67%. The sole gainer was materials, which rose 1.33% as the price of gold advanced US$16.80 to US$1,660.70 an ounce.

The price of crude oil fell US$1.44 to US$101.02 a barrel.

“It’s no surprise investors are selling off risk assets,” Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, told Bloomberg. “The market in general is due for a pause. We’ve had six months of pretty good financial returns in the stock markets around the world, and we’ve hit a little bit of a wall here.”

The Dow Jones industrial average tumbled 213.66 points, or 1.65%, to close at 12,715.93, while the Nasdaq lost 55.86 points, or 1.85%, to 2,991.22.

“U.S. indices were stable off the open but selling accelerated off of a disappointing wholesale inventories report (0.9% versus street 0.5%),” said analyst Colin Cieszynski of CMC Markets in an afternoon note. “That a statistic which is usually resoundingly ignored could have such an impact indicates that traders on this side of the pond were grasping for any excuse to take some money off the table.”

Trade data from China “added to the brew of caution” even though export figures were better than had been expected, Cieszynski noted.

“Although the headline number ($5.35-billion surplus versus street $3.15-billion deficit) and export growth exceeded expectations, the street chose to focus in on slower import growth (5.3% versus street 9%) as a sign of a slowing economy.”

The Canadian dollar fell below par with its U.S. counterpart for the first time since March 6, losing 76 basis points to close at 99.59 US cents as investors sold off risk assets.

Canada’s junior Venture exchange dipped 17.54 points, or 1.21%, to 1,431.10.

Canadian gold miners benefited from the rising gold price on Tuesday: Barrick Gold’s shares rose 2.23% to $41.71, and Goldcorp shares gained 1.76% to $41.65.

Also in the materials sector, First Quantum Minerals’ share price rose 8.81% to $21.11 on takeover speculation.

Canadian Pacific Railway Ltd.’s share price rose briefly after the railway said it expected first-quarter earnings to far exceed expectations, but by market close it had dropped 1.88% to $73.26. Canadian National Railway shares also fell on Tuesday, losing 2.14% to $76.05.

Here’s the news investors were watching today:

Why Spain is in much worse shape than anyone thinks

Is it time to buy or sell Canadian stocks?

How Instagram became a US$1-billion company in two years

Best Buy CEO resigns

ON DECK WEDNESDAY

ECONOMIC NEWS

CANADA

8:15 a.m.

• Housing starts (March): Economists predict 200,000 starts, down slightly from last month

UNITED STATES

8:30 a.m.

• Import price indices (March): Economists predict 0.8% rise on month, 3.4% rise on year

2 p.m.

• Beige Book

CORPORATE NEWS

CANADA

• Astral Media Q2 earnings: Analysts estimate 67 cents a share

With little other economic data to guide markets on Monday, the first day of trading following the Easter long weekend, investor sentiment was led downward by a disappointing jobs report released in the U.S. on Good Friday.

Here are the closing numbers

TSX — 12018.50 -84.61 -0.7

S&P 500 — 1382.20 -15.88 -1.1

Dow — 12929.59 -130.55 -1.0

Nasdaq — 3047.08 -33.42 -1.1

In Toronto, the S&P/TSX was at its lowest level since January, down 84.61 points, or 0.70%, to 12,018.50. Eight of the 10 sub-indexes declined, led by health care and consumer products, but the most heavily valued decliners were financials and energy issues. Manulife Financial shares fell 3.12% to $12.73 on Monday, and Sun Life Financial dropped 3.31% to $22.77. Cenovus Energy saw its share price dip 1.19% to $33.92.

“It’s a bit of a knee-jerk reaction to the Friday news in the face of very thin markets,” Irwin Michael, a money manager at ABC Funds in Toronto, told Bloomberg. “A good deal of the negativity in the market is a function of the fact that U.S. employment numbers disappointed people.”

The U.S. economy added 120,000 jobs in March — about 85,000 short of expectations following on economic data showing a slow-but-steady improvement in the country’s economic situation.

“The economy does continue to grow, but slowly,” John Carey of Pioneer Investments in Boston told Bloomberg. “That’s been the source of frustration for a lot of investors, that we haven’t had the big forward movement in the economy like we have in the past.”

Also weighing on the markets Monday was a report showing China’s consumer price inflation came in higher than expected.

The Dow Jones industrial average fell 130.55 points, or one%, to 12,929.59 on Monday, while the Nasdaq composite fell 33.42 points, or 1.08%, to 3,047.08.

Canada’s junior Venture exchange lost 32.39 points, or 2.19%, to close at 1,448.65.

The price of crude oil pared some of its earlier losses on Monday, closing at US$102.46 a barrel, down US85 cents. The price of gold rose US$13.80 to US$1,643.90 an ounce.

The Canadian dollar slipped 27 basis points, closing at $1.035 US.

There was some good news for Canadian business on Monday. The Bank of Canada’s Business Outlook and Senior Loan Officer surveys provided an upbeat picture of the country’s business sector.

“On the heels of a robust Canadian jobs print that stood up to our scrutiny on the details and which cannot be explained away by either weather or sampling error, businesses signalled upbeat expectations for sales growth by the widest margin since the first quarter of 2010,” said Scotia Capital economists Derek Holt and Dov Zigler in an afternoon commentary.

“This is a trend-busting result that fully reverses what had been a disconcerting swing lower throughout last year. There is typically little if any discernible market effect stemming from these reports, but they feed into BoC thinking on the forward looking state of the economy.”

Here’s the news investors were watching today:

Facebook buys Instagram for US$1-billion

Apple downgraded as iPhone subsidy model in doubt

Goldman’s 20 best stocks in the world

China’s inflation heats up

ON DECK TUESDAY

ECONOMIC NEWS

UNITED STATES

7:30 a.m.

• FNIB small business economic survey (March): Economists expect a reading of 95, up slightly from the month before

7:45 a.m.

• Same-store sales

10 a.m.

• Wholesale trade (Feb): Economists expect 0.5% gain

CORPORATE NEWS

UNITED STATES

• Alcoa Inc. Q1 earnings: Analysts expect a loss of 4 cents a share

North American markets, already in negative territory on Tuesday, fell further after minutes of the last U.S. Federal Reserve Open Market Committee were released, showing central bankers think the U.S. economy will get along fine without any further monetary stimulus.

Here are the closing numbers

TSX —12323.61 -1.47% -183.45

S&P 500 — 1413.38 -0.4% -5.66

Dow — 13199.55 -0.49% -64.94

Nasdaq — 3113.57 -0.2% -6.13

In Toronto, the S&P/TSX composite index closed at 12,323.61, a drop of 183.44 points, or 1.47%. In the U.S., the Dow Jones industrial average fell 64.94 points, or 0.49%, to 13,199.55, and the Nasdaq composite index dipped 6.13 points, or 0.20%, to 3,113.57.

“The minutes suggested that FOMC members recognized that economic, employment and financial market conditions improved since the previous meeting with moderate improvement projected going forward,” said analyst Colin Cieszynski of CMC Markets. “Because of this, it appears that the Fed sees no need for additional stimulus (read a third round of quantitative easing) unless things turn south again, although it still plans to maintain current accommodation with interest rates expected to remain at low levels through the end of 2014.”

Following the release, Cieszynski said, “U.S. indices immediately nosedived . . . as hopes for QE3 were dashed on the rocks of reality once again. With an election coming and the economy improving it was pretty much now or never for QE3 in order to avoid monetary policy and the existence of the Fed becoming an election issue.”

Nine of the S&P/TSX’s 10 sub-indexes fell. Materials led the decliners, falling 3.12%; followed by technology, down 2.05%; energy, which dipped 1.32%; and financials, which lost 1.24%.

A $7.70 drop in the price of gold, to $1,672.00 US an ounce, accounted for some of the decline in the materials sub-index, as did a dip in the share price of Ivanhoe Mines Ltd., which fell 7.88% to $14.37 after both Toronto-Dominion and Bank of Montreal downgraded the Vancouver-based company’s stocks over concerns about rising development costs.

Energy issues lost ground after the price of crude oil fell $1.22 to $104.01 US a barrel. In the technology sector, Research In Motion was responsible for the lion’s share of the losses, after it was accused Tuesday of infringing a Dutch semiconductor company’s patents. Investors were also speculating that, despite comments from CEO Thorsten Heins last week that the company was open to forming partnerships, there were few companies out there that would be willing to take RIM on. The BlackBerry-maker’s shares fell 9.4% to $12.91 on Tuesday.

The financials sector could trace its losses Tuesday to a lawsuit brought by the U.S. Commodity Futures Trading Commission that said Canada’s biggest bank had engaged in illegal trades to garner tax benefits. Royal Bank shares dipped 2.79 points, or $57.10 per cent.

The Canadian dollar slipped one basis point to $1.0097 US.

Canada’s junior Venture exchange lost 24.16 points, or 1.54% to 1,545.63.

Here’s the news investors were watching today:

Royal Bank shares hit amid allegations of illegal trading

Research in Motion sued by NXP over patents

Loonie should climb higher if BoC takes more hawkish tone

Why Apple will hit US$1,001 within year

ON DECK WEDNESDAY

ECONOMIC NEWS

• European Central Bank decides on interest rates

CANADA

11:55 a.m.

• Bank of Canada deputy governor Jean Boivin speaks at Economic Club of Canada in Toronto

UNITED STATES

8:15 a.m.

• ADP National employment report (March): Economists expect a gain of 206,000 jobs, fewer than last month

10 a.m.

• Non-manufacturing ISM Index (March): Economists expect a reading of 56.8, down from the month before

CORPORATE NEWS

UNITED STATES

• Monsanto Co Q2 earnings: Analysts expect US$2.11 a share

Resources and energy led the gains on Canada’s benchmark stock index on Monday after better-than-expected manufacturing data from China and the U.S. supported confidence in a strengthening global economy.

Here are the closing numbers

TSX — 12507.06 +0.93% +114.88

S&P 500 — 1419.04 +0.75% +10.57

Dow — 13264.49 +0.4% +52.45

Nasdaq — 3119.70 +0.91% +28.13

The S&P/TSX composite index gained 114.88 points, or 0.93%, at 12,507.06. Nine of the 10 sub-indexes advanced, led by materials, up 1.55%, health, which rose 1.41%, and energy, which gained 1.11%.

“The numbers that came out (Monday) are surprisingly better than most people were thinking,” Gerry Brockelsby, a money manager at Marquest Asset Management Inc. in Toronto, told Bloomberg. “This is just confirmation that China is OK, and if concerns fade, people will get more and more positive about the global economy, which we think is in great shape and improving.”

Manufacturing data from China was a split decision of sorts, with the official purchasing managers index number at 53.1, beating expectations for a reading of 50.8, while the HSBC PMI was 48.3, down from the previous reading of 49.6, “keeping the street uncertain over the health of that economy,” analyst Colin Cieszynski of CMC Markets said in a note. A number below 50 signals a contraction.

“Curiously, China’s official PMI lined up almost precisely with the U.S. figure for March, while the private-sector metric was much closer to the euro result. Reality likely is somewhere between the two,” said BMO Capital Markets deputy chief economist Douglas Porter, referring to data showing the eurozone’s manufacturing sector contracting for an eighth straight month in March.

“Continued sluggishness in the Eurozone (was) offset by better than expected results out of the U.K. and South Korea and an improvement from Ireland,” Cieszynski said. “The U.S. result tipped the scales in favour of the bullish camp.”

In the U.S., the Institute for Supply Management manufacturing index rose to 53.4 in March from 52.4 the previous month. While it had lesser impact on the markets, Canada’s own manufacturing sector also gained strength in March, with the RBC manufacturing purchasing managers index rising to 52.4 from 51.8 in February.

“All in all, this was a solid report and shows that the manufacturing sector remains a key contributor to U.S. economic growth,” said Alistair Bentley, an economist with TD Economics, of the U.S. numbers. “In March, the employment sub-index posted its strongest reading since June 2011, which adds to the encouraging list of leading indicators (including lower initial jobless claims and a solid ‘labor differential’ in last week’s Consumer Confidence report) heading into Friday’s job report.”

The Dow Jones industrial average rose 52.45 points, or 0.40%, to 13,264.49, and the Nasdaq composite gained 28.13 points, or 0.91%, to 3,119.70.

The Canadian dollar rose 73 basis points to US$1.0098.

Canada’s junior Venture exchange edged up 3.39 points, or 0.22%, to 1,569.79.

Here’s the news investors were watching today:

Malaysia plans Canadian gas acquisition topping $5-billion

Why, when and how QE3 is coming

Ivanhoe sells SouthGobi stake to China for $889-million

Ackman adds veteran railroader to CP Rail board nominees

ON DECK TUESDAY

ECONOMIC NEWS

• Australia sets interest rate

CANADA

• Nova Scotia Budget
• Spring report of the Auditor-General

UNITED STATES

7:45 a.m.

• ICSC Same-store sales

10 a.m.

• Factory orders (Feb): Economists expect 1.5% rise from the month before

2 p.m.

• U.S. Fed monetary policy minutes

Canada’s benchmark stock index was on the rise for the first time in four sessions on Friday, boosted by gains in the prices of oil and gold.

At midday in Toronto, the S&P/TSX composite index was up about 60 points, or 0.49%, to 12,399.

The price of crude oil had gained 54 cents to $103.32 US a barrel in midday trading in New York, and gold rose $8.10 to $1,663.00 US an ounce.

The Canadian dollar was down 15 basis points to $1.0015 US.

Stronger-than-expected growth in personal spending in the U.S. in February helped push the gains in the markets on Friday.

“Durable goods continue to lead spending growth, highlighting the degree of unmet pent-up demand in these sectors,” says TD Economics economist Chris Jones.

“But the real bright spot in today’s report was services spending, which surged to its highest level in real terms since May 2010. Since services make up over 60% of consumer expenditures, the hope is that this nascent strength is evidence of spending growth that is becoming more diffuse as the recovery gains momentum.”

Still, Jones cautions that “with incomes actually falling in real terms, consumer purchasing power is eroding. The divergence between spending and income growth is unsustainable. Something ultimately has to give.”

The Dow Jones industrial average was up about 53 points, or 0.41%, to 13,199.17 at midday, and the Nasdaq composite index had risen four points, or 0.13%, to 3,099.

Tokyo’s Nikkei slipped 0.31% on Friday, and Hong Kong’s Hang Seng fell 0.26%. London’s FTSE rose 0.46%, the CAC in Paris gained 1.26% and Frankfurt’s DAX advanced 1.04%.

Canada’s benchmark stock index fell for a third day on Thursday along with the price of crude oil, which dropped as governments considered releasing strategic reserves in response to high gasoline prices and threats of supply disruptions.

Here are the closing numbers:

TSX — lost 74.50 points, or 0.60%, to 12,339.36

S&P 500 — lost 2.26 points, or 0.16%, 1,403.28

Dow — gained 19.61 points, or 0.15%, to 13,145.82

Nasdaq — lost 9.60 points, or 0.31%, to 3,095.36

At the close in Toronto the S&P/TSX composite index was down 74.50 points, or 0.60 per cent, to 12,339.36.

The price of crude oil fell $2.63 US to $102.78 US a barrel, while gold was down $5.60 US to $1,659.90 US an ounce.

The Canadian dollar had erased its earlier losses and was up nine basis points to $1.0030 US in late-afternoon trading.

The Dow Jones industrial average, had also erased its earlier losses and was ahead by 18.55 points, or 0.14 per cent, to 13,144.76 at the closing bell, while the Nasdaq composite continued to trade in negative territory, down 9.60 points, or 0.31 per cent, to 3,095.36.

In Tokyo, the Nikkei slipped 0.67 per cent, and the Hang Seng in Hong Kong was down 1.32 per cent. London’s FTSE dropped 1.15 per cent, the CAC in Paris fell 1.43 per cent and Frankfurt’s DAX declined 1.77 per cent.

Research In Motion reports after the bell. Get live coverage here

Get Federal Budget coverage here

Here’s the news investors were watching today:

Why investors hate junior golds

Canada, U.S. lead G7 recovery while Europe falters

What commodities will do this year and next

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• GDP (Jan): Economists expect 0.1 gain on the month before, 1.7% rise year over year

UNITED STATES

8:30 a.m.

• Personal income and consumption (Feb): Economists expect 0.4% rise in income, 0.6% gain in spending

9:45 a.m.

• Chicago purchasing managers index (Feb): Economists expect a reading of 63, down from month before

9:55 a.m.

• University of Michigan Consumer Sentiment index (March): Economists expect a reading of 74.5, unchanged from month before

The Toronto Stock Exchange was leaning toward a third straight day of declines early Thursday as oil prices fell and U.S. jobless claims came in higher than expected.

Shortly after the open, the S&P/TSX composite index was down 99.08 points, or 0.80%, to 12,314.78. That followed Wednesday’s decline of 98.18 points, or 0.78%.

In the U.S., it was learned that initial jobless claims were down 5,000 to 359,000 last week. While it was the lowest level since April 2008, it was still higher than the 350,000 that economists polled by Bloomberg were expecting.

The third and final reading on U.S. gross domestic product in 2011’s fourth quarter confirmed the previous estimate that the economy grew at an annualized rate of three per cent. That compared to 1.8 per cent in the third quarter.

In Europe, Standard & Poor’s warned that Greece might once again have to restructure its debt.

The Canadian dollar declined 30 basis points to 99.91 US cents, its first time below parity with the U.S. greenback in about three weeks.

On U.S. stock markets early Thursday, the Dow Jones industrial average was down 56.68 points, or 0.43%, to 13,069.53. The Nasdaq composite index fell 16.6 points, or 0.53%, to 3,088.36. On Wednesday, the Dow fell 71.52 points, or 0.54%, while the Nasdaq dropped 15.39 points, or 0.49%.

The United Kingdom’s FTSE index was down 46.55 points, or 0.8%, to 5,762.44 on Thursday. France’s CAC fell 33.3 points, or 0.97%, to 3,396.85. In Germany, the DAX was down 89.15 points, or 1.27%, to 6,909.65.

Japan’s Nikkei index was down 67.78 points, or 0.67%, to 10,114.79. In Hong Kong, the Hang Seng fell 276.03 points, or 1.32%, to 20,609.39. Mainland China’s Shanghai composite was down 32.72 points, or 1.43%, to 2,252.16.

Falling commodity prices led Canada’s benchmark stock index to its second straight decline on Wednesday, and also weighed on markets south of the border.

Here are the closing numbers

TSX — 12413.86 -0.78% -98.18

S&P 500 — 1405.54 -0.49% -6.98

Dow — 13126.21 -0.54% -71.52

Nasdaq — 3104.96 -0.49% -15.39

The S&P/TSX composite index closed at 12,413.86, a drop of 98.18 points, or 0.78%. Nine of the 10 sub-indexes declined, led by materials, off by 1.89%, and energy, which fell 1.21%. Technology was the sole gainer.

The price of crude oil fell US$1.92 to US$105.41 a barrel in New York trading, while gold tumbled US$27.20 to US$1,660.50 an ounce.

“Crude oil has been under pressure from both sides of the Atlantic with reports suggesting that the U.S., U.K. and France may all release crude from emergency stockpiles into the market in a combined effort to knock oil prices back down,” analyst Colin Cieszynski of CMC Markets said in an afternoon note.

The last time the U.S. released oil from the strategic reserves, in June 2011, the price for West Texas Intermediate crude fell US$2, then settled at around US$100 a barrel, where it stayed “throughout July until the combination of the European crisis, U.S. budget-ceiling wrangling, slower China economic growth, and significant second-quarter 2011 economic underperformance formed a quadruple-whammy for markets, causing U.S. equities as well as crude prices to fall rapidly and meaningfully over the subsequent six weeks,” wrote Scotia Capital economists Derek Holt and Dov Zigler in an afternoon note.

Cieszynski notes other factors helped move markets lower Wednesday, including weaker-than-expected durable goods orders in the U.S. in February.

“In Canada, energy and materials are two of the most economically sensitive sectors,” Pat McHugh, senior managing director and Canadian equity strategist at Manulife Financial Corp.’s asset-management unit, told Bloomberg. “Anything that indicates a weakness in the economy, whether consumer or capital goods related, would impact them negatively.”

The Dow Jones industrial average fell 71.52 points, or 0.54% to 13,126.21, while the Nasdaq composite slipped 15.39 points, or 0.49%, to 3,104.96.

The Canadian dollar lost 30 basis points to close at US$1.0021. Weak U.S. data, combined with comments from U.S. Federal Reserve chairman Ben Bernanke that call into question the strength of the U.S. economic recovery, didn’t help the loonie.

“It’s been a rough day for Canada as a black cloud hangs over the market with optimism about a recovery starting to fade,” Steve Butler, managing director in Toronto at Bank of Nova Scotia’s Scotia Capital unit, told Bloomberg. “Risk currencies have taken a big hit of late as the data has been less than stellar and Ben Bernanke threw water on the idea that the U.S recovery is gaining much ground.”

Canada’s junior Venture exchange fell 24.81 points, or 1.58%, to 1,550.25.

Here’s the news investors were watching today:

Mortgage rates have nowhere to go but up

Apple offers refund to Australian buyers of new iPad

The behind-the-scenes banking crisis that is brewing in Europe

Wall Street investors wary of Zuckerberg’s absence

ON DECK THURSDAY

ECONOMIC NEWS

• Canada Federal Budget released at 4 p.m.

CANADA

8:30 a.m.

• Industrial product price index (Feb): Economists expect 0.5% rise
• Raw materials price index (Feb): Economists expect 0.5% rise

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 350,000 claims, up from last week
• Real GDP (Q4): Economists expect 3% gain annualized
• Corporate profits (Q4)

CORPORATE NEWS

CANADA

• Research In Motion Ltd Q4 earnings: Analysts expect 82 cents a share
• Richelieu Hardware Ltd Q4 earnings

UNITED STATES

• Best Buy Co. Inc Q4 earnings: Analysts expect US$2.16 a share
• Paychex Inc Q4 earnings: Analysts expect 37 cents a share

Canada’s benchmark stock index fell for the first time in three sessions on Tuesday, as energy issues lost ground following an announcement that the U.S. could release oil from its strategic reserve.

Here are the closing numbers

TSX — 12512.04 -0.5% -62.75

S&P 500 — 1412.52 -0.28% -3.99

Dow — 13197.73 -0.33% -43.90

Nasdaq — 3120.35 -0.07% -2.22

Centerra Gold saw its share price fall 15.07% to $13.70 after it announced production cuts at its Kyrgyz mine because ice movements were restricting access.

The price of crude oil erased earlier losses and closed at US$107.33 a barrel, a gain of 30 US cents. Gold fell 50 US cents to US$1,687.70 an ounce.

“(Canadian) financials have shown some improvement, but we counter that against weakness we continue to see in oil and gas,” Andrew Pyle, an associate money manager on a Bank of Nova Scotia team, told Bloomberg. “For the last couple of weeks we’ve been seeing decent movements in the price of oil without really a commensurate improvement in the oil and gas sector.”

Canada’s junior Venture exchange fell 6.33 points, or 0.40% to 1,575.06.

Markets in the U.S. also fell on Tuesday following a number of minor disappointments — March consumer confidence dipped slightly, and the monthly Case-Shiller index showed housing prices flat in January.

The Dow Jones industrial average lost 43.90 points, or 0.33%, to 13,197.73, and the Nasdaq composite edged down 2.22 points, or 0.07%, to 3,120.35.

“Indications that the U.S. Federal Reserve may remain accommodative for some time even if it doesn’t bring in any more quantitative easing has helped to provide support, but a lack of positive news and some small negatives created enough headwinds to put a cap on advances for now,” said analyst Colin Cieszynski of CMC Markets.

“Overall, it appears that with the end of the month and quarter approaching, markets continue to mark time as traders take stock and position for next week’s flurry of economic data followed by the start of earnings season farther into April.”

The Canadian dollar fell 38 basis points to close at US$1.0051 on Tuesday.

“Equity markets rallied (Monday), and we did see the Canadian dollar a little stronger, but it really hasn’t followed through much — which has been a theme,” Blake Jespersen, director of foreign exchange at Bank of Montreal in Toronto, told Bloomberg. “We need some kind of catalyst to break this market out of its funk.”

The loonie has gained 2.8% this quarter, according to Bloomberg calculations.

“I don’t think there’s much reason for the Canadian dollar to be much stronger than where it is now,” Jespersen told Bloomberg. “The Canadian dollar is comfortable trading right around parity.”

Here’s the news investors were watching today:

Europe’s debt crisis far from over, OECD warns

CP chief Fred Green defends his track record

Enbridge venture plans oil pipes to Gulf as Keystone blocked

ON DECK WEDNESDAY

ECONOMIC NEWS

UNITED STATES

8:30 a.m.

• Durable goods orders (Feb): Economists expect a 3% gain from month before

CORPORATE NEWS

CANADA

• AGF Management Ltd Q1 earnings: Analysts expect 27 cents a share

UNITED STATES

• Red Hat Inc. Q1 earnings: Analysts expect 27 cents a share

U.S. Federal Reserve chairman Ben Bernanke gave markets a boost on Monday when he suggested accommodative monetary policy might be necessary to get U.S. employment growth back on track.

Here are the closing numbers

TSX — 12574.79 0.88% +109.13

S&P 500 — 1416.51 1.39% +19.40

Dow — 13241.63 1.23% +160.90

Nasdaq — 3122.57 1.78% +54.65

In Toronto, the benchmark S&P/TSX composite index rose for a second session, gaining 109.13 points, or 0.88%, to 12,574.79.

The junior Venture exchange gained 25.87 points, or 1.66%, to 1,581.39.

South of the border, the Dow Jones industrial average advanced 160.90 points, or 1.23%, to 13,241.63, and the Nasdaq composite was up 54.65 points, or 1.78%, to 3,122.57.

Speaking in Arlington, Virginia, Bernanke said the job market won’t improve without faster economic growth, which in turn would be supported “by continued accommodative policies.”

“What Bernanke means by ‘continued accommodative policies,’ however, is very much open to interpretation,” say Scotia Capital economists Derek Holt and Dov Zigler, noting that Bernanke says nothing about the likelihood of a third round of quantitative easing. What he did say, is that the country’s employment problems are cyclical, and not structural — a key point, say Holt and Zigler.

“If the problems facing the U.S. economy and U.S. job markets were structural, then accommodative monetary policy would not necessarily be effective. Bernanke is saying otherwise, that it’s a problem stemming from insufficient aggregate demand that can be fixed if monetary (stimulus) ‘primes the pump’ of the economy. He also noted that the improvement in job markets to date has not been driven by this year’s economic growth, but rather the re-hiring of workers who were excessively fired during the crisis. As evidence, he pointed to the divergence between economic growth and job gains year to date. He signalled that he believes this effect may now have shaken out such that ‘further significant improvements in unemployment will likely require faster economic growth than we experienced during the past year’.”

Commodities gained on Monday on Bernanke’s comments, and on speculation that the European Union would be increasing the size of its bailout fund.

The price of crude oil rose 16 US cents to US$107.03 a barrel, and gold gained US$23.30 to US$1,688.20 an ounce.

The Canadian dollar rose 76 basis points to US$1.0089.

All 10 of the S&P/TSX’s sub-indexes advanced on Monday, led by industrials, which rose 2.22%, due in large part to gains in the share price of SNC-Lavalin, Canada’s largest engineering and construction company.

The Montreal-based firm reversed an earlier loss after it reported a 52% drop in quarterly profits, issued guidance calling for earnings-per-share in 2012 to be flat with 2011, and announced chief executive Pierre Duhaime was stepping down following an investigation into incorrectly booked payments totalling $56-million. The company’s share price ended the day at $41.31, a gain of 5.19%, after earlier rising as much as 6.7%.

Here’s the news investors were watching today:

SNC-Lavalin shares spike after CEO resigns

Air Canada labour fight spills over onto flyers

How Thorsten Heins can impress with less in his RIM earnings debut

RBC axes 2.99% discount mortgage

ON DECK TUESDAY

ECONOMIC NEWS

UNITED STATES

9 a.m.

• S&P Case-Shiller home price index (Jan): Economists expect a 0.3% decline from the month before, 3.8% drop from the year before

10 a.m.

• Conference Board consumer confidence index (March): Economists expect a reading of 70, unchanged from the month before

CORPORATE NEWS

UNITED STATES

• Apollo Group Inc. Q2 earnings: Analysts expect 38 cents a share

Disappointing manufacturing data from Europe and China set the tone for North American markets on Thursday, sending commodity prices lower as investors’ fears of a global economic slowdown were reignited.

Here are the closing numbers

TSX — 12361.81 -0.6% -74.68

S&P 500 — 1392.78 -0.72% -10.11

Dow — 13046.14 -0.6% -78.48

Nasdaq — 3063.32 -0.39% -12.00

Canada’s benchmark stock index fell for the third of four sessions this week, closing at 12,361.81, a drop of 74.68 points, or 0.60%. Eight of the 10 sub-indexes declined, led by energy, which dropped 1.32%, and materials, down 1.05%.

The price of crude oil dropped sharply on Thursday, falling US$1.92 to US$105.35 a barrel. Gold, normally a safe haven for investors in troubled times, also lost ground. It fell US$7.80 to US$1,642.50.

The Canadian dollar fell 75 basis points to US$1.0003.

Canada’s junior Venture exchange dropped 36.85 points, or 2.34%, to 1,540.75.

“The correlation between commodities and the Canadian market is very high,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ont., told Bloomberg. “This is not only because we’re fairly overweight in that sector, but also because of this whole perception of Chinese demand fuelling commodity-based countries.”

Energy and raw-materials companies make up 46% of Canadian stocks by market value, according to Bloomberg data.

“China’s recently announced lower growth target for the next five years (7.5%) caused some consternation in global markets. Recent data, including monthly surveys of purchasing managers, also show that China’s manufacturing sector has slowed,” wrote BMO Capital Markets economist Christy Chen in an afternoon commentary, suggesting that the slowing likely reflects the country’s “structural shift” from exports to consumption.

“Although this shift may entail significant challenges for the manufacturing sector and the global markets it influences, this structural re-balancing of the second-largest economy is positive for the long-term health of the global economy.”

Another report Thursday showed manufacturing output shrinking in Germany and France where growth had been expected.

The overseas data weighed on U.S. markets despite some good economic news there, including data showing initial jobless claims for the previous week at their lowest level since March 2008. The Dow Jones industrial average lost 78.48 points, or 0.60%, closing at 13,046.14, while the Nasdaq fell 12.00 points, or 0.39%, to 3,063.32.

The headline jobless claim number doesn’t tell the whole story, wrote Derek Holt and Dov Zigler, economists with Scotia Capital, who point out that the duration of unemployment is at a record-high 40 weeks, meaning “the long-term unemployed are not being pulled back in to the workforce as yet. Second, just because claims are low doesn’t automatically mean that accelerated hiring lies around the corner as opposed to just stopping the firings at a fairly mild pace of job growth.”

As well, they say, the decline could be seasonal, which means it could be reversed later on.

Here’s the news investors were watching today:

Canada stands ready to tighten mortgage rules: Flaherty

BlackBerry loses top spot at home

Markets take fright as China stalls

Obama orders agencies to fast-track Keystone XL’s southern leg

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

7 a.m.

• Consumer price index (Feb): Economists expect 0.4% rise from the month before, up 2.7% year over year

UNITED STATES

10 a.m.

• New home sales (Feb): Economists expect 1.3% gain from the month before

Canada’s benchmark stock index eked out a small gain on Wednesday, its first of the week, after a morning in negative territory led to an afternoon of choppy trading.

Here are the closing numbers

TSX — 12436.49 0.05% +5.79

S&P 500 — 1402.89 -0.19% -2.63

Dow — 13124.62 -0.35% -45.57

Nasdaq — 3075.32 0.04% +1.17

The S&P/TSX composite index closed at 12,436.49, up 5.78 points, or 0.05%. Seven of the 10 sub-indexes advanced, led by consumer services, up 1.26%, and industrials, which rose 1.16%, boosted by a deal between Bombardier and Commercial Aircraft Corp. of China that is expected to grow the Canadian company’s sales and cut its costs. Bombardier shares rose 3.21% to $4.18. Canadian railways also had a good day — Canadian National Railway shares rose 1.82% to $78.88, and Canadian Pacific shares gained 2.09% to $78.53.

Energy issues had weighed on the S&P/TSX earlier in the day, falling despite the rising price of oil — up US$1.20 to US$107.27 a barrel in New York trading on Wednesday. Gold gained US$3.30 to US$1,650.30 an ounce.

“For the past couple of weeks this market has been predominantly driven off the commodity space, but you’re not seeing a lot of movement on it today,” Gareth Watson, vice-president of investment management and research at Richardson GMP Ltd. in Toronto, told Bloomberg. “It’s a reflection of the fact that there really hasn’t been a great deal of news or development overnight from an economic standpoint.”

The Canadian dollar slipped five basis points to US$1.0078.

Canada’s junior Venture exchange also made a small gain on Wednesday, up 6.86 points, or 0.44%, to 1,577.56.

Markets in the U.S. were mixed on Wednesday. Data showing existing home sales for February fell, where analysts had been expecting an increase, weighed on the Dow. There was also the sense, however, that markets are overvalued as a result of their steady rise since December, and that it was time to take a break.

“People won’t play real hard at these levels,” Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Fla., told Bloomberg. “I don’t think you should get bearish. Yet the market’s energy seems to be used up after the strong rally.”

Also on Wednesday, Federal Reserve chairman Ben Bernanke raised concerns about inflationary pressures building due to higher gasoline prices in response to questions from the House Committee on Oversight and Government Reform.

“Higher energy prices would probably slow growth, at least in the short run,” Bernanke said. Rising fuel prices “create at least short-term inflation pressures, and moreover, they act as a tax on household purchasing power and reduce consumption spending, and that also is a drag on the economy.”

The Dow Jones industrial average slipped 45.57 points, or 0.35%, to 13,124.62, and the Nasdaq composite was just above flat with a gain of 1.17 points, or 0.04%, to 3,075.32.

Here’s the news investors were watching today:

Goldman tells investors to buy stocks, dump bonds

New Apple iPad runs hotter than previous model, tests confirm

Spain never so close to default, economist warns

Buffett winning bet that hedge funds can’t beat market

ON DECK THURSDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Retail sales (Jan): Economists expect 1.8% rise from the month before

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 350,000 new claims, down slightly from week before

10 a.m.

• FHFA House price index (Jan): Economists expect 0.3% rise from month before
• Leading indicators (Feb): Economists expect 0.6% rise from month before

CORPORATE NEWS

CANADA

• Silver Wheaton Corp Q4 earnings: Analysts expect 39 cents a share

UNITED STATES

• Nike Q3 earnings: Analysts expect US$1.16 a share
• ConAgra Foods Inc Q3 earnings: Analysts expect 49 a cent

• Fed Ex Q3 earnings: Analysts expect US$1.35 a share
• Gamestop Corp Q4 earnings: Analysts expect US$1.72 a share

Canadian stocks edged lower Monday as oil prices rose in anticipation that U.S. economic growth will continue to accelerate but gold stocks fell.

Here are the closing numbers

TSX — 12479.70 -0.14% -17.26

S&P 500 — 1409.75 0.4% +5.58

Dow — 13239.13 0.05% +6.51

Nasdaq — 3078.32 0.75% +23.06

The S&P/TSX composite index slipped into negative territory late in the session, closing down 17.27 points, or 0.14%, to 12,479.70 as U.S. crude futures rose US$1.03 a barrel to US$108.09 a barrel.

Suncor Energy rose 1.55%, or 51 cents, to $33.46 while Canadian Natural Resources climbed 1.31%, or 46 cents, to $35.50.

The Canadian dollar, meanwhile, rose close to its highest point in the past eight months — up 45 basis points to US$1.0127 — as the benchmark S&P 500 index climbed to its highest level since 2008 on broad hopes for a continuing U.S. economic recovery.

“We’ve been moving higher over the last few months, but it makes sense for the market to pause from time to time,” Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, told Bloomberg.

“In terms of oil stocks, there’s still a bit of a disconnect between their prices and the lofty price for crude. They still have more room to climb to catch up, and you’re seeing that a bit today.”

Gold prices rose US$11.50 to US$1,667.30 an ounce, although the TSX materials sector still posted the worst performance of the benchmark index’s 10 sub-indexes, falling 0.84%.

Shares in grain Viterra Inc. fell 24 cents, or 1.48%, to $15.97 in a halt-shortened session after the grain handler confirmed it’s in exclusive discussions with a third party about a possible sale. Speculation is that the purchasing group would comprise Swiss commodity trader Glencore International, Calgary-based Agrium and Winnipeg’s Richardson International.

Viterra didn’t name the company it’s in talks with but said last week it was aware of media reports speculating that there had been expressions of interest of about $16 a share.

In the U.S., the Dow Jones industrial average edged up 6.51 points, or 0.05%, to 13,239.13 while the Nasdaq composite index climbed 0.75%, or 23.06 points, to 3,078.32.

Shares in Apple Inc. rose US$15.53, or 2.65%, to US$601.10 in trading on the Nasdaq after the tech giant announced a share buyback and that it would begin paying a dividend for the first time since 1995.

“There’s plenty of room for dividends to increase,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, told Bloomberg. His firm oversees US$160-billion. “Paying dividends is a sign of health in the companies and the economy. That plays well in terms of investors’ confidence.”

In Europe, London’s FTSE edged down 0.07% to 5,961.11 while the Paris CAC lost 0.47% to 3,577.88 and Frankfurt’s DAX slipped 0.05% to 7,154.22.

Here’s the news investors were watching today:

Apple launches dividend, share buy-back

TD upgrades Canadian economic outlook

Air Canada repair firm Aveos files for creditor protection as employees protest ‘savage shutdown’

Viterra in exclusive acquisition talks

ON DECK TUESDAY

ECONOMIC NEWS

• Chairman Ben Bernanke gives first of four lectures on the role of the U.S. Federal Reserve

UNITED STATES

8:30 a.m.

• Housing starts (Feb): Economists expect 0.1% rise
• Building permits (Feb): Economists expect 0.6% rise

8:55 a.m.

• Redbook

CORPORATE NEWS

UNITED STATES

• Oracle Q3 earnings: Analysts expect 56 cents a share
• SAIC Inc Q4 earnings: Analysts expect 34 cents a share
• Cintas Corp. Q3 earnings: Analysts expect 52 cents a share
• Tiffany and Co Q4 earnings: Analysts expect US$1.42 a share

Some good economic news out of the U.S. on Thursday helped put Canada’s benchmark stock index back into positive territory after its steep drop the previous day.

Here are the closing numbers

TSX — 12455.82 0.63% +77.92

S&P 500 — 1402.60 0.6% +8.32

Dow — 13252.76 0.44% +58.66

Nasdaq — 3056.37 0.51% +15.64

The S&P/TSX composite index gained 77.92 points, or 0.63%, to 12,455.82, recovering about half of Wednesday’s loss. All 10 of the sub-indexes advanced, led by consumer goods, up 2.25%, and health care, which gained 1.57%.

“Economic data released Thursday were generally positive. U.S. jobless claims data … showed positive momentum in labour markets, with initial jobless claims falling to 351,000 — a level consistent with private payroll gains in excess of 200,000. The U.S. has not seen that low of a level of initial jobless claims since February 2008,” noted economists Derek Holt and Dov Zigler of Scotia Capital. “It is undoubtedly cause for optimism and implies that one of the most stubbornly depressed segments of the U.S. economy is rebounding — somewhat.”

That is not, however, the end of the story, say Holt and Zigler in an afternoon commentary.

“A pair of manufacturing surveys released Thursday highlighted the divergence between economic growth and improvements in the labour market. The March Philadelphia Fed and Empire State manufacturing surveys showed acceleration in employment but weakness in manufacturing new orders and shipments. This is broadly in line with other economic data released of late in the U.S.: mediocre January durable goods orders and retail sales that look as though they were fairly weak in real terms.”

The Dow Jones industrial average rose 58.66 points, or 0.44%, to 13,252.76 on Thursday, and the Nasdaq composite gained 15.64 points, or 0.51%, to 3,056.37.

Canada’s junior Venture exchange rose 7.17 points, or 0.45%, to 1,601.52.

In Canadian economic news, Statistics Canada reported Thursday that the ratio of credit market debt to personal income fell in the fourth quarter of 2011, as income growth outpaced increases in debt. Canadians now spend about $1.50 for every dollar they earn, down from a record-high $1.52 in the previous quarter.

Also on Thursday, Quebec’s securities regulator said it intends to approve Maple Group’s $3.8-billion takeover offer for TMX Group, clearing a key hurdle for the bidding group in its effort to acquire Canada’s largest stock market operator, which helped pushed financials issues forward.

“The approval of the TMX deal is certainly a plus,” Stephen Gauthier, a money manager at Fin-XO Securities in Montreal, told Bloomberg. “Strength in the U.S. market, especially in financials, is also having a positive effect on the Canadian market today. It’s definitely helped the banks.”

The price of oil fell another 32 cents on Thursday, to US$105.11 a barrel, and gold, which hit eight-week lows the previous day, regained US$16.60 to US$1,659.50 an ounce.

The Canadian dollar rose nine basis points to close at US$1.0079.

Here’s the news investors were watching today:

Apple shares top $600 for first time ahead of new iPad launch

Canada’s home sales back on the rise

Viterra shares jump as sale process confirmed

Canadian household debt declines as disposable income increases

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Manufacturing sales and orders (Jan): Economists expect 0.2% rise from the month before
• International securities transactions (Jan): Economists expect $9-billion, up from the month before

UNITED STATES

8:30 a.m.

• Consumer price index (Feb): Economists expect 0.4% gain on month, 2.9% year over year

9:15 a.m.

• Industrial production and capacity utilization (Feb): Economists expect 0.4% rise in production and 78.8% capacity

9:55 a.m.

• University of Michigan Consumer sentiment index (March): Economists expect a reading of 76, up from the month before

One of the more bearish economic shops in the world is feeling more optimistic about the global economy, but not enough to think equity markets are headed for more gains.

Capital Economics raised their year-end targets for the S&P 500, German DAX and FTSE 100 to reflect an improved forecast for U.S. economic growth this year of 2% from 1.5% and reduced fears of contagion from further problems in the euro zone, including the possibility of a euro break-up.

But in all cases, the firm still believes stock indexes will fall from current levels.

“The uncertainty that would be created by the break-up of the euro is also one reason why we remain cautious on the prospects for US equities,” economist Julian Jessop said.

“Nonetheless, this needs to be set against the stronger-than-previously-anticipated economic recovery, especially when the economic and financial linkages between the U.S. and the euro-zone are not that strong.”

Mr. Jessop said the results of the U.S. Federal Reserve’s latest bank stress tests released on Tuesday, were also reassuring, but anticipate occasional periods of volatility and renewed weakness in US equities as the crisis in Europe continues

“What’s more, the prospects for US equities remain clouded by valuations that are unfavourable from a historical perspective, he said.

“Finally, owner unemployment combined with higher core inflation will further reduce the chances of additional monetary support. That should prevent the S&P 500 from making much further headway, even if the index doesn’t fall outright.”

Gold lost some of its shine on Wednesday as a resurgence of confidence in the state of the global economy made the precious metal less attractive as a safe haven for investors.

Here are the closing numbers

TSX — 12377.90 -1.27% -159.79

S&P 500 — 1394.28 -0.12% -1.67

Dow — 13194.10 0.12% +16.42

Nasdaq — 3040.73 0.03% +0.85

The precious metal tumbled US$51.30 to US$1,642.90 an ounce on Wednesday, and oil prices slipped US$1.28 to US$105.43 a barrel, causing a sharp drop for Canada’s benchmark stock index on a day when most other world markets managed at least small gains.

The S&P/TSX composite index fell 159.80 points, or 1.27%, to 12,377.90 on Wednesday. Nine of the 10 sub-indexes declined, led by materials, which fell 3.45%, and energy, which dropped 1.89%.

Canada’s junior Venture exchange fell 33.03 points, or 2.03%, to 1,594.35.

On the other hand, in the U.S., the Dow Jones industrial average managed a slight gain, rising 16.42 points, or 0.12%, to 13,194.10, and the Nasdaq composite, after spending the day in negative territory, closed just above flat at 3,040.73, with a gain of less than one point, or 0.03%.

“The gap between the Dow and the TSX widened sharply further on Wednesday, moving out above 800 points from a level position just three months ago,” BMO Capital Markets deputy chief economist Douglas Porter wrote in an afternoon note. “The divergence is even starker going back a year — this week in 2011 saw the TSX more than 2,000 points above the Dow. The very different paths are due to many factors: the wildly differing performances of tech, weakness in Canadian energy and resource shares, and the recovery in U.S. financial and consumer stocks, to name a few.”

The decline on the S&P/TSX on Wednesday wiped out the gains made the previous day when markets surged following U.S. Federal Reserve chair Ben Bernanke’s statements pointing to a slow but steady improvement in that country’s economy. Those comments were good for equities on Tuesday, but removed some of gold’s appeal a day later.

“With the Fed statements (Tuesday) and the data coming out of the U.S., the market is getting a lot better,” Greg Taylor, a money manager at Aurion Capital Management in Toronto, told Bloomberg. “With that happening, people don’t need their insurance policy, which has been gold.”

Financials were the only sub-sector to advance in Toronto on Wednesday, and that sector also led the gains in the U.S., after the Fed released the largely positive results of its stress tests on U.S. banks.

“You have the Fed putting an approval rating on a lot of these banks saying: we’re comfortable with their financial position,” Andrew Slimmon, managing director of global investment solutions at Morgan Stanley Smith Barney, told Bloomberg. “Then, you look at their valuation and boy, these stocks are very cheap. It certainly furthers the willingness to put money to work.”

Here’s the news investors were watching today:

Goldman Sachs insider slams firm for ripping off clients

China warns of property ‘chaos’

RIM shorts surge to 8-year high

ON DECK THURSDAY

Join our live chat on executive compensation starting at noon

ECONOMIC NEWS

CANADA

• Existing home sales (Feb)

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 357,000 claims, down from the week before
• Producer price index (Feb): Economists expect 0.5% rise from month before, 3.3% year over year
• Empire State manufacturing survey (Mar): Economists expect a reading of 17.5, down from the month before

9 a.m.

• Foreign purchases of U.S. securities (Jan)

10 a.m.

• Philadelphia Fed Index (Mar): Economists expect a reading of 12, up from the month before

CORPORATE NEWS

CANADA

• Quebecor Inc Q4 earnings: Analysts expect 54 cents a share
• Transat AT Inc Q4 earnings: Analysts expect 58 cents a share
• Crescent Point Energy Corp Q4 earnings: Analysts expect 17 cents a share

UNITED STATES

• Ross Stores Inc Q4 earnings: Analysts expect 86 cents a share

The U.S. Federal Reserve’s Open Market Committee delivered an economic outlook on Tuesday that according to one analyst was just “grudgingly more upbeat,” but it was enough to boost markets that had earlier risen on the possibility that there might be some policy change in the statement.

Here are the closing numbers

TSX — 12537.69 0.88% +109.68

S&P 500 — 1395.95 1.81% +24.86

Dow — 13177.68 1.68% +217.97

Nasdaq — 3039.88 1.88% +56.22

“Expectations for (Tuesday’s) FOMC meeting were low, and expectations were met, although the overall tone of the statement was consistently less dour than in January,” said Douglas Porter, deputy chief economist for BMO Capital Markets.

Danielle Park, a money manager at Venable Park Investment Counsel Inc., in Barrie, Ont., said the statement on the whole was neutral for investors who might have hoped the Fed would inject more stimulus into the economy.

“Stocks rallied this morning supposedly on hope for some message, but I wouldn’t say (Fed chair Ben Bernanke) delivered it,” Park told Bloomberg on Tuesday. “He’s saying that global market stresses have eased and that higher oil is going to push up inflation temporarily. That would suggest to me that he would be on hold for (quantitative easing).”

Canada’s junior Venture exchange fell 8.72 points, or 0.53%, to 1,627.37 on Tuesday, but it was an exception.

Canada’s benchmark S&P/TSX composite index posted its fourth positive finish in five sessions, rising 109.68 points, or 0.88%, to 12,537.69.

The Dow Jones industrial average gained 217.97 points, or 1.68%, to close at 13,177.68 — its highest level since 2007 — and the Nasdaq rose 56.22 points, or 1.88%, to 3,039.88, its highest level since 2000.

“What appears to have made the street so excited is that this time around the Fed acknowledged the improving economy, reduced strain in financial markets and falling unemployment rate,” said analyst Colin Ciezynski of CMC Markets. “By essentially staying the course (one member dissented on leaving rates low for so long) and improving its economic assessment,” the Fed has essentially erased the prospect of a third round of quantitative easing “once and for all, as an improving economy doesn’t need quantitative easing.”

The price of crude oil rose 37 cents to US$106.71 a barrel in trading in New York on Tuesday, while gold fell US$5.60 to US$1,694.20 an ounce.

The Canadian dollar rose 35 basis points to US$1.0109, boosted by a more optimistic global economic outlook which has helped push up the price of oil.

Seven of the 10 sub-indexes on the S&P/TSX advanced on Tuesday, led by consumer goods, up 1.92%, industrials, which gained 1.56%, and financials, up 1.46%.

Trading in Viterra, Canada’s biggest grain-handler, helped push gains in the consumer goods sector. Shares in that company rose 1.94% to $14.73 on Tuesday, for a total gain of 32.03% since Friday, when Viterra announced it had received “expressions of interest” from companies interested in a takeover.

Here’s the news investors were watching today:

Fed keeps rate hikes on hold

China’s rare earth monopoly challenged

Why the loonie will stay strong

Android to overtake iPad in tablet market by 2015: IDC

ON DECK WEDNESDAY

ECONOMIC NEWS

• U.S. Fed chairman Ben Bernanke speaks to community bankers

CANADA

8:30 a.m.

• Capacity Utilization (Q4): Economists expect 81.6%, flat with the month before

UNITED STATES

8:30 a.m.

• Current account (Q4): Economists expect deficit of US$114.9-billion

• Import price indices (Feb): Economists expect 0.6% gain over the month before, 5.9% year over year

CORPORATE NEWS

CANADA

• Power Financial Corp Q4 earnings: Analysts expect 17 cents a share
• Power Corp of Canada Inc Q4 earnings: Analysts expect 54 cents a share
• GMP Capital Q4 earnings: Analysts expect 9 cents a share

Oil and gold prices tumbled on Monday, dragging Canada’s benchmark index with them after China reported a worse-than-expected trade deficit for February, while U.S. stocks were in a holding pattern ahead of this week’s Federal Reserve open market committee meeting.

Here are the closing numbers

TSX — 124828.01 -0.6% -75.61

S&P 500 — 1371.09 0.02% +0.22

Dow — 12959.71 0.29% +37.69

Nasdaq — 2983.66 -0.16% -4.68

In Toronto, the S&P/TSX composite index fell 75.61 points, or 0.60%, to 12,428.01 on Monday. Five of the 10 sub-indexes also declined, led by materials, down 1.35%, health care, which was off by 1.33%, and energy, down 1.28%.

The price of crude oil dropped US$1.06 to US$106.34 a barrel in New York on Monday, while gold fell US$11.70 to US$1,699.80 an ounce. Those declines were reflected in the share prices of energy companies such as Canadian Natural Resources, which dropped 3.13% to $34.40 and Suncor, down 3.07% to $33.19; and metals producers such as Goldcorp, which dipped 1.39% to $46.25. Teck Resources saw its share price slip 2.85% to $35.49 as the price of copper fell.

“China’s trade balance swung to a record $31.5-billion deficit in February, as the gain in imports (+39.6%) more than doubled the rise in exports (+18.4%),” BMO Capital Markets economist Benjamin Reitzes said in a note Monday.

The soft export figure reinforces “the view of slowing global economic momentum. Weakness in Europe and generally sluggish developed economy demand are weighing on Chinese exporters. The trade figures, taken with slowing inflation, retail sales and industrial production, suggest that another reserve requirement cut or an interest rate cut could come within the next month or two.”

The Canadian dollar fell 18 basis points to US$1.0074 on Monday on the disappointing Chinese trade report.

“The Canadian dollar has been consistently weakening in sympathy with the commodity currencies after a disappointment in the Chinese data,” Stewart Hall, senior currency strategist at Royal Bank of Canada’s RBC Capital unit in Toronto, told Bloomberg. “Markets have slipped into a Fed-induced slumber — you get the sense no one wants to step in front of the Fed bus.”

Markets in the U.S. were mixed on Monday, but overall seemed to be in a holding pattern ahead of the FOMC meeting on Tuesday. While the interest rate announcement is not expected to hold any surprises — the Fed has committed to holding its overnight rate at its current levels into next year — “the street will likely focus on the commentary more than usual for indications on the potential for additional quantitative easing in light of the strengthening U.S. economy and employment situation,” said analyst Colin Cieszynski of CMC Markets.

The Dow Jones industrial average rose 37.69 points, or 0.29%, to 12,959.71 on Monday, while the Nasdaq composite was just below flat with a dip of 4.68 points, or 0.16%, to 2,983.66.

Here’s the news investors were watching today:

China eyes freer yuan after trade sinks into the red

New Apple iPad pre-order shipments delayed as customer demand ‘off the charts’

Glencore targets Viterra

Spain throws down new challenge to eurozone

ON DECK TUESDAY

ECONOMIC NEWS

• U.S. Federal Reserve announces interest rate decision at 2:15 p.m.

CANADA

• Manpower survey (Q2)

UNITED STATES

7:30 a.m.

• NFIB Small business economic trends survey (Feb): Economists expect a reading of 94.5%, up from the month before

8:30 a.m.

• Retail sales (Feb): Economists expect a 1.1% gain

8:55 a.m.

• Redbook (March 10)

10 a.m.

• Business investories (Jan): Economists expect a 0.5% gain
• Manpower survey (Q2)

CORPORATE NEWS

CANADA

• Empire Co Ltd. Q3 earnings: Analysts expect $1.10 a share
• Transcontinental Inc. Q1 earnings: Analysts expect 36 cents a share

A majority of investors signed on to Greece’s debt swap on Thursday, a prospect that had factored into the day’s trading, boosting markets that had dropped earlier in the week on fears that investors would balk at the terms.

Here are the closing numbers

TSX — 12461.93 0.91% +111.77

S&P 500 — 1365.91 0.98% +13.28

Dow — 12907.94 0.55% +70.61

Nasdaq — 2970.42 1.18% +34.73

In Toronto, the benchmark S&P/TSX composite index rose 111.77 points, or 0.91%, to 12,461.93. Nine of the 10 sub-indexes advanced, led by industrials, up 1.26%, and consumer goods, up 1.18%.

The price of crude oil rose 42 cents to US$106.58 a barrel in New York, while gold advanced US$14.80 to US$1,698.70 an ounce.

Most of Greece’s pension funds and more than 30 European banks and insurers, including BNP Paribas and Commerzbank AG, had signed on for the swap ahead of Thursday’s deadline, reports suggested.

“Recent reports suggest that 70-80% of bonds have been tendered depending on who you listen to,” said Colin Cieszynski, an analyst with CMC Capital Markets. “This, combined with (Thursday’s) market action suggests that traders now expect the deal to go through. If so, it could remove a significant overhang from markets and enable traders to refocus on the prospects for the global economy.”

“Greece pulling it off by the skin of their teeth will still reassure the markets,” Dirk Becker, an analyst with Kepler Capital Markets in Frankfurt, told Bloomberg.

The Canadian dollar gained 72 basis points to close at $1.0090 after the Bank of Canada announced it was leaving its overnight rate unchanged but signalled that interest rate hikes could come sooner rather than later.

“With some of the hawkish tones from the Bank of Canada, the Canadian dollar is climbing,” Dean Popplewell, head analyst in Toronto at the online currency-trading firm Oanda Corp., told Bloomberg. “The Greek bond-debt takedown is looking good. If we get a high percentage of investors, risk will be applied yet again and that should also help the Canadian currency.”

Canada’s junior Venture exchange rose 12.67 points, or 0.78%, to 1,634.34.

The market rebound of the past two days essentially clears the decks for a load of economic data releases on Friday, including consumer and producer prices from China, and the final results of the bond swap in Greece. Also on tap are employment reports from the U.S. and Canada.

“The U.S. number could give an indication of the momentum in the US economy and give an indication of whether or not the U.S. Federal Reserve is likely to increase monetary liquidity any time soon,” Cieszynski said. “For Canada, the employment number may confirm or contradict the Bank of Canada’s more optimistic comments on the global economy from (Thursday) morning.”

The Dow Jones industrial average rose 70.61 points, or 0.55%, to 12,907.94 on Thursday, while the Nasdaq composite index advanced 34.73 points, or 1.18%, to 2,970.42.

Here’s the news investors were watching today:

Greece bond swap set to pass

BoC turning hawkish? What the analysts say

Dell takes on iPad with new Windows tablet

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

7 a.m.

• Employment report (Feb): Economists expect a gain of 15,000 jobs and the jobless rate to remain unchanged at 7.6%

8:30 a.m.

• Merchandise Trade Balance (Jan): Economists expect $2-billion
• Labour productivity (Q4): Economists rise of 0.6%

UNITED STATES

8:30 a.m.

• Employment Report (Feb): Economists expect gain of 210,000 jobs and the jobless rate to stay at 8.3%
• Goods and services trade balance (Jan): Economists expect a deficit of $49-billion

10 a.m.

• Wholesale inventories (Jan): Economists expect 0.6% rise

Most global markets bounced back Wednesday after their worst trading day so far in 2012, but failed to erase the previous day’s losses.

Here are the closing numbers

TSX — 12350.16 0.42% +51.53

S&P 500 — 1352.63 0.69% +9.27

Dow — 12837.33 0.61% +78.18

Nasdaq — 2935.69 0.87% +25.37

In Canada, the benchmark S&P/TSX composite index posted its first positive close in four sessions, rising 51.53 points, or 0.42%, to 12,350.16. Nine of the 10 sub-indexes advanced, led by consumer goods, up 1.08%, and energy, up 0.98%. Financials was the only decliner, dropping 0.22% as all seven of Canada’s banks lost ground, including Laurentian Bank, which slipped 0.69% to $44.74 after its first-quarter earnings, excluding some items, missed estimates.

The price of crude oil rose US$1.46 to US$106.16 a barrel, while gold, which has lost more than US$100 in the past week, clawed back just over one-third of the previous day’s losses, gaining US$11.80 to US$1,683.90 an ounce.

Asian markets slid again on Wednesday, but European and North American indexes advanced as more banks signed on as voluntary participants in the Greek debt swap ahead of Thursday’s deadline. So far the participants represent investors holding 58% of the bonds eligible for the swap.

“There’s a lot of blind optimism and hope on the part of the people that are trading this market,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ont., told Bloomberg. “Each leg of news that comes out of the Greek deal, they have a euphoric blast.”

While most eyes will be on Greece ahead of the Thursday evening deadline for the debt swap, five central banks are scheduled to make interest rate announcements before North American markets open again, including the Bank of Canada, as well as the Reserve Bank of New Zealand, the Bank of Korea, the Bank of England and the European Currency Board.

“While no changes are expected to interest rates or (quantitative easing) programs comments from central bankers could highlight the trend in monetary policy for some time to come,” says analyst Colin Cieszynski of CMC Markets. Other economic news expected Thursday that could have a bearing on investor sentiment includes gross domestic product and trade data from Japan; industrial production figures from Germany; and initial jobless claims for the previous week in the U.S., ahead of Friday morning’s employment reports in both the U.S. and Canada.

The Canadian dollar was once again trading above par on Wednesday after following below in the previous day’s rout. It closed at US$1.0018, up 24 basis points.

The Dow Jones industrial average gained 78.18 points, or 0.61%, to 12,837.33 after a private report showed payrolls increased slightly more last month than had been expected. The Nasdaq composite index rose 25.37 points, or 0.87%, to 2,935.69.

Canada’s junior Venture exchange rose 16.80 points, or 1.05%, to 1,621.67.

Here’s the news investors were watching today:

Apple unveils ‘new iPad,’ coming to Canada March 16

Greek prospects lifted by swap pledges

Canada’s top 25 billionaires

Canadian energy shares gain, banks fall

ON DECK THURSDAY

ECONOMIC NEWS

• European Central Bank interest rate decision
• Bank of England rate decision

CANADA

8:30 a.m.

• Housing starts (Feb): Economists expect 200,000, up from the month before
• New housing index (Jan): Economists expect 0.1% rise on the month, 2.5% year over year

9 a.m.

• Bank of Canada interest rate decision: Economists expect the bank to hold rates at 1%

UNITED STATES

7:30 a.m.

• Challenger Layoff Report (Feb)

8:30 a.m.

• Weekly jobless claims: Economists expect 351,000

Noon

• Flow of funds (Q4)

CORPORATE NEWS

CANADA

• Canadian Imperial Bank of Commerce Q1 earnings: Analysts expect $1.92 a share
• Canadian Natural Resources Q4 earnings: Analysts expect 86 cents a share
• Viterra Inc Q1 earnings: Analysts expect 19 cents a share

UNITED STATES

• Altera Corp. Q1 earnings: Analysts expect 37 cents a share

A possible hitch in the momentum of China’s economy sent global markets tumbling on Monday.

Here are the closing numbers

TSX — 12523.95 -0.95% -119.87

S&P 500 — 1364.33 -0.39% -5.30

Dow — 12962.81 -0.11% -14.76

Nasdaq — 2950.48 -0.86% -25.71

“(The) market was already somewhat sensitive to the potential for disappointments, having seen Chinese officials cut back growth expectations to 7.5% from the current year’s growth rate of 8.9%,” said Stewart Hall, senior currency strategist for RBC Dominion Securities, in an afternoon note. “Forget that this is purely optics as the bar to growth is set to be beat. Nonetheless, the forecast served as a reminder that while China is expected to engineer a soft landing, it remains a decelerating growth story. In a world starved for growth this is an unwelcome forecast.”

In Toronto, the benchmark S&P/TSX composite index fell 119.87 points, or 0.95%, to 12,523.95 after China cut its forecast. Seven of the 10 sub-indexes declined, with commodities the hardest-hit sectors — materials fell 2.6% and energy dropped 1.42%.

Canadian gold producers took a hit on Monday as the price of gold fell US$5.90 to US$1,703.90 an ounce. Barrick Gold Corp. shares fell 1.05% to $46.38 and Goldcorp lost 1.89%, closing at $47.65.

“It’s an open question how much China is going to grow for three or four years,” Todd Johnson, a money manager at BCV Asset Management in Winnipeg, told Bloomberg. “It’s important to the commodity sector because they’re the net price-setter on lots of materials: copper, iron ore, even oil.”

The price of crude oil rose two US cents to US$106.72 a barrel, but Canadian energy producers lost ground on worries about the implications of the cut in China’s forecast. Energy giant Suncor saw its share price drop by 1.81% to $34.81, while Canadian Natural Resources lost 1.98% to $35.61.

Copper producers Teck Resources Ltd. and First Quantum Minerals both tumbled on Monday. Teck fell 6.02% to $36.20, while First Quantum dropped 5.35% to $21.95.

Potash Corp. of Saskatchewan slipped 3.18% to $44.72.

The Canadian dollar slipped 57 basis points to $1.0058 as investors fled risky assets.

Canada’s junior Venture exchange fell 23.07 points, or 1.37%, to 1,655.83.

Economic data in the U.S. on Monday, though mixed, helped soften the blow from China’s announcement there. A report that factory orders fell in January for the first time in three months was outweighed by another report showing the non-manufacturing sector growing more than expected in February.

“The momentum that we’ve been generating in the economy is starting to broaden,” Robert Dye, chief economist at Comerica Inc. in Dallas, told Bloomberg. “As we get stronger job growth, we’ll see more lift to the economy in the second half of the year.”

The Dow Jones industrial average slipped 14.76 points, or 0.11%, to 12,962.81 on Monday, while the Nasdaq composite fell 25.71 points, or 0.86%, to 2,950.48.

Here’s the news investors were watching today:

Canada on track fiscally: Flaherty

China cuts growth target to 8-year low

TSX seen lagging Wall St for 2nd year in 2012

ON DECK TUESDAY

• Reserve Bank of Australia announces interest rate decision

ECONOMIC NEWS

CANADA

• The Prospectors and Developers Association of Canada conference continues until Wednesday

10 a.m.

• Ivey Purchasing Managers’ index (Feb): Economists expect a reading of 62, down from the previous month

UNITED STATES

8:55 a.m.

• Redbook

CORPORATE NEWS

CANADA

• Bank of Nova Scotia Q1 earnings: Analysts expect $1.14 a share
• Linamar Corp Q4 earnings: Analysts expect 40 cents a share

Confident consumers in the U.S. made for positive market momentum on Tuesday, giving Canada’s benchmark stock index its first positive close in three sessions.

Here are the closing numbers:

TSX — gained 40 points, or 0.32%, to 12, 740.47
S&P 500 — gained 4.59 points, or 0.34%, to 1,372.18
Dow — gained 23.61 points, or 0.18%, to 13,005.12
Nasdaq —gained 20.60 points, or 0.69%, to 2,986.76

The S&P/TSX composite index finished at 12,740.47, up 40.10 points, or 0.32 per cent. Five of the 10 sub-indexes advanced, led by materials, up 1.28 per cent as the price of gold rose, boosting producers of the precious metal.

Industrials led decliners, falling 1.92 per cent largely due to a 20.55 per cent in the share price of SNC-Lavalin, which fell to $38.43 after the Montreal engineering giant warned that its stalled projects in Libya will take an $80-million bite out of its earnings for the year, about 18 per cent.

The price of crude oil slipped $2.01 to $106.55 US a barrel, while gold gained $13.50 to $1,788.50 US an ounce.

U.S. consumer confidence levels shot up in February to 70.8 from 61.1 in January, according to the Conference Board, blowing away expectations for a rise to 63.0.

“It’s giving people a little bit of confidence that the economy will gradually improve and the recent run over the past four months in the stock market was not a fake out,” Irwin Michael, a money manager at ABC Funds in Toronto, told Bloomberg. “With good earnings, more mergers and acquisitions — because we see a lot of that happening — we expect the market to be higher than where it is now at the end of the year.”

The confidence numbers managed to overshadow durable goods orders for January, which declined four per cent, when analysts had expected a drop of one per cent. Also on Tuesday, the Case/Shiller housing price index also showed a disappointing 1.1 per cent drop.

The Dow Jones industrial average closed above 13,000 on Tuesday for the first time since May 2008, rising 23.61 points, or 0.18 per cent, to 13,005.12. The Nasdaq composite index rose 20.60 points, or 0.69 per cent, to 2,986.76.

“Amid all the recent attention on the Dow’s quest for the 13,000 level, an equally noteworthy fact is how incredibly stable the index has been recently. So far this year, only two sessions have seen moves in excess of one per cent (Jan. 3 was +1.5 per cent in the first session of the year and Feb 3 was +1.2 per cent after the jobs report),” notes BMO Capital Markets deputy chief economist Douglas Porter. “In recent days, it has barely moved, recording two days in a row of less than two-point moves. This contrasts heavily with last summer and fall, when daily changes of two per cent to four per cent were the norm. And we won’t conjure up memories of late 2008, when daily swings of more than six per cent were not uncommon.”

The Canadian dollar jumped 38 basis points to $1.0046 US.

Canada’s junior Venture exchange advanced 13.69 points, or 0.82 per cent, to 1,693.19.

Postmedia News

Here’s the news investors were watching today:

SNC-Lavalin plunges on profit outlook, accounting probe

What really saved the day for BMO

German court raises hurdle to bailouts

Maple Leaf Q4 profit slides 70% on higher costs

ON DECK WEDNESDAY

ECONOMIC NEWS

CANADA

• Teranet-National composite housing index: Economists expect a 0.2% decline from month before

8:30 a.m.

• Capital spending intentions (2012)

UNITED STATES

• Federal Reserve Chairman Ben Bernanke delivers semi-annual testimony on monetary policy before the House Financial Services Committee

8:30 a.m.

• Real GDP (Q4): Economists expect 2.8% gain annualized

9:45 a.m.

• Chicago Purchasing Managers’ index (Feb): Economists expect a reading of 61, up from the month before

2 p.m.

• Beige Book

CORPORATE NEWS

CANADA

• Torstar Corp. Q4 earnings Analysts estimate 54 cents a share

UNITED STATES

• Costco Wholesale Corp. Q2 earnings: Analysts estimate 87 cents a share
• Edison International Q4 earnings: Analysts estimate 45 cents a share
• ITT Corp Q4 earnings: Analysts estimate 36 cents a share
• Staples Inc Q4 earnings: Analysts estimate 40 cents a share

Canada’s benchmark stock index declined for the second straight session on Monday, a day with little economic data to detract from IMF director Christine Lagarde’s warnings that the global economy is still in the “danger zone.”

TSX — 12700.38 -0.2% -25.39

S&P 500 — 1367.59 +0.14% +1.85

Dow — 12981.51 -0.01% -1.44

Nasdaq — 2966.16 +0.08% +2.41

The S&P/TSX closed at 12,700.38 down 25.39 points, or 0.20%. Six of the 10 sub-indexes advanced, led by health care, whose five per cent growth was due to Valeant Pharmaceuticals. Stocks in the acquisition-hungry pharmaceutical company gained 5.62% to $50.71 after the company reported better-than-expected fourth-quarter earnings.

The price of oil fell $1.21 to US$108.56 a barrel on Monday, and gold also fell, losing $1.50 to $1,774.90.
The Canadian dollar pared some of its earlier gains but closed the day at US$1.0008, a gain of five basis points.

“(Monday) has essentially been another day of consolidation for the markets,” analyst Colin Cieszynski said in an afternoon note. “Stocks started out a bit soft but have bounced back into the afternoon after Germany’s lower house passed the Greek bailout agreement. U.S. and U.K. crude oil have been backing off . . . in a normal trading correction, dragging gold and silver back down with them as inflation pressures ease somewhat.”

Lagarde said in a statement on Sunday that given fragile financial systems and rising oil prices, the world’s economy is “not out of the danger zone.” Also on the weekend, G20 finance ministers meeting in Mexico City told European Union leaders they wouldn’t offer up more rescue funds for until the EU antes up more itself.

Still, Cieszynski sees signs of “cautious optimism” in Monday’s markets.

“While moves toward resolving Europe’s financial crisis may not be coming as fast as some would like, progress continues to be made. The global economy also continues to recover although the street may now wait for the manufacturing PMI numbers due Thursday morning to see how much momentum has been building. As such, we may see traders take a wait-and-see approach for the next couple of days.”

In the U.S., better-than-expected pending home sales helped buoy the Dow Jones industrial average for most of the day, though it slipped just below flat in late afternoon, closing at 12,981.51, down 1.44 points, or 0.01%, while the Nasdaq composite index ended with a slight gain, up 2.41 points, or 0.08%, at 2,966.16.

The day’s results help prove the resilience of the markets, Timothy Ghriskey, chief investment officer at Solaris Group LLC in Bedford Hills, New York, told Bloomberg. “The U.S. home data has helped the market,” he said. “We don’t see a lot of aggressive buyers, but there are not many aggressive sellers.”

Canada’s junior Venture exchange slipped 10.02 points, or 0.59%, to 1,679.50.

Here’s the news investors were watching today:

Germany approves second Greek bailout

TransCanada to build southern leg of Keystone XL as ‘standalone’ project

Buffett buys more IBM, would consider selling J&J

Canada’s banks face big tests in 2012: PwC

ON DECK TUESDAY

ECONOMIC NEWS

UNITED STATES

8:30 a.m.

• Durable goods orders (Jan): Economists expect a decline of 0.4% from the month before

8:55 a.m.

• Red Book

9 a.m.

• S&P Case-Shiller home price index (Dec): Economists expect a decline of 0.4% from the month before, down 3.6% year over year

10 a.m.

• Conference Board consumer confidence index (Feb): Economists expect a reading of 63, up from month before

CORPORATE NEWS

CANADA

• Bank of Montreal Q1 earnings: Analysts estimate $1.37 a share
• Maple Leaf Foods Inc Q4 earnings: Analysts estimate 27 cents a share
• MacDonald Dettwiler and Associates Q4 earnings: Analysts estimate 84 cents a share
• Quadra Q4 earnings: Analysts estimate 7 cents a share

UNITED STATES

• First Solar Inc Q4 earnings: Analysts estimate US$1.55 a share
• Office Depot Inc Q4 earnings: Analysts estimate 0 cents a share
• Sempra Energy Q4 earnings: Analysts estimate US$1.06
• Tenet Healthcare Corp. Q4 earnings: Analysts estimate 14 cents a share

With files from Financial Post

Canada’s benchmark stock index posted its second straight weekly gain on Friday even as it dipped slightly on the day due a drop in the price of gold.

The S&P/TSX composite index closed at 12,725.77, a loss of 5.52 points, or 0.04% on the day. It was up 2.15% for the week. Seven of the 10 sub-indexes advanced on Friday, led by consumer goods, up 2.26%, and technology, up 1.31%.

Auto-parts supplier Magna International drove the gains in the consumer goods sector, rising 5.36% to $47.36 after its fourth-quarter earnings topped estimates.

The price of oil rose US$1.94 to US$109.77 a barrel on Friday, while gold fell US$9.90 to US$1,776.40 an ounce.

“Canada’s S&P TSX, which is up a solid three per cent over the past two weeks, is ending February like a lion,” economists from TD Economics wrote in a weekly note on Friday. “The Canadian dollar is also benefiting from an improving global risk appetite, hovering at or above parity for its longest stretch since the autumn.”

The Canadian dollar closed the week at US$1.0003, a loss of 21 basis points on Friday. It closed below parity once this week after trading above par with the greenback since the first of the month.

“U.S. stock markets have been on a tear over the past several weeks reflecting new-found optimism in the economic outlook,” the TD economists said. “The housing market is leading the improvement in economic indicators and showed continued momentum this week. Existing home sales rose to levels last seen during the homebuyer tax credit of early 2010. Supported by continued job gains, the housing market looks to be turning a corner.

“The one caveat to rising optimism is rising gas prices. As tensions with Iran push up crude oil prices, consumers are feeling it at the pumps. A sustained gain in oil prices presents a key downside risk to recent economic momentum.”

That warning was borne out on Friday. Markets which had surged earlier in the day on news of rising U.S. consumer confidence levels, and news that January home sales were better than had been expected, dipped sharply as the rising price of oil weighed on consumer and manufacturing issues.

The Dow Jones industrial average closed just below flat at 12,982.95, a dip of 1.74 points, or 0.01%. The Nasdaq composite advanced 6.77 points, or 0.23%, to 2,963.75.

“Energy prices are getting to the level where you would expect to start to see consumer spending slow,” Barry Knapp, head of equity strategy at Barclays Capital Inc. in New York, told Bloomberg. “And we’re seeing that in the stock market in a sense.”

Canada’s junior Venture exchange fell 4.62 points, or 0.27%, to 1,689.52.

The Toronto Stock Exchange looked like it might pull off a fourth-straight day of gains early Friday, though it’s initial rise was modest.

Shortly after the open, the S&P/TSX composite index was up 10.44 points, or 0.08%, to 12,741.72.

Oil prices were helping, as the going rate in New York rose 56 US cents to US$108.39 a barrel. Such gains were seen as the joint effect of signals of an improving U.S. economy and rising tension between western countries and Iran, a major oil producer.

Gold in New York was down US$7.60 to US$1,778.70 an ounce, while the Canadian dollar declined 16 basis points to US$1.0008.

On U.S. markets, the Dow Jones industrial average was ahead 19.52 points, or 0.15%, to 13,004.21 in early trading. The Nasdaq composite index rose 7.1 points, or 0.24%, to 2,964.08.

Such market activity proceeded meetings being held in Mexico this weekend of G20 finance ministers, including Canada’s Jim Flaherty. A big part of the discussions were expected to be financial support for struggling European countries through the International Monetary Fund. Flaherty has repeatedly said that, given the relative wealth in Europe, money put into the IMF by other industrialized countries should not be used to bail out European countries.

European markets were mostly up Friday. The United Kingdom’s FTSE was an exception, declining 3.2 points, or 0.05%, to 5,934.69. In France, the CAC rose 14.62 points, or 0.42%, to 3,461.93. Germany’s DAX was ahead 31.35 points, or 0.46%, to 6,840.81.

Japan’s Nikkei index was up 51.81 points, or 0.54%, to 9,647.38. In Hong Kong, the Hang Seng rose 25.87 points, or 0.12%, to 21,406.86. Mainland China’s Shanghai composite jumped 30.07 points, or 1.25%, to 2,439.63.

On Thursday, the TSX was up 30.03 points, or 0.24%, to 12,731.28. The Dow Jones gained 46.02 points, or 0.36%, to 12,984.69, while the Nasdaq was ahead 23.81 points, or 0.81%, to 2,956.98.

Markets continued to advance Thursday ahead of the North American close, as commodities rallied and investor sentiment rose with positive economic data.

Here are the closing numbers

TSX — 12731.28 +0.24% +30.03

S&P 500 — 1363.46 +0.43% +5.80

Dow — 12984.69 +0.36% +46.02

Nasdaq — 2956.98 +0.81% +23.81

The S&P/TSX composite index rose 30.03 points, or 0.24 per cent, to 12,731.28. Six of its 10 sub-indexes advanced, led by health care, up 1.65 per cent, and technology, up 1.31 per cent.

After falling earlier in the day, the price of crude oil closed at $107.83 US a barrel, a gain of $1.55, while gold gained $15.00 to close at $1,786.30 US an ounce.

The Canadian dollar rallied with the commodity price gains, after slipping below parity with its U.S. counterpart the previous day. It gained 28 basis points to close at $1.0024 US. Initial jobless claims for the previous week in the U.S., which came in lower than expected, also helped the loonie advance.

“The continued improvement in the trend in initial claims is helping the mood a little bit today,” Benjamin Reitzes, senior economist and foreign exchange strategist at BMO Capital Markets, told Reuters.

“You’re seeing broad U.S. dollar weakness across the board so there’s a somewhat risk-on environment with stocks modestly higher. That’s of course helping the Canadian dollar.”

Canada’s junior Venture exchange rose 9.18 points, or 0.54 per cent, to 1,694.13.
Economic data that helped lift markets on Thursday included reports showing gains in German business confidence and in industrial orders in the U.K. In the U.S., initial jobless claims for the previous week came in lower than expected, and there were also signs of life in the country’s beleaguered housing market.

“The second best measure of U.S. home prices bounced higher than expected in December,” Scotia Capital economists Derek Holt and Dov Zigler wrote in an afternoon note.

“The Federal Housing Finance Agency’s measure isn’t as useful as the S&P/Case Shiller repeat sales measure, but it rose by more than expected (0.7 per cent m/m versus consensus 0.1 per cent).

“Some of this was due to a lower-than-expected base effect as the prior month’s gain was revised lower from one per cent to 0.7 per cent, but that’s quibbling. The main point is that this measure of house price changes has posted the strongest two back-to-back gains since 2005.”

The Dow Jones industrial average rose 46.02 points, or 0.36 per cent, to 12,984.69, and the Nasdaq gained 23.81 points, or 0.81 per cent, to close at 2,956.98.

Some Canadian companies saw movement in their share prices after reporting earnings on Thursday, including Yamana Gold, the company’s fourth-largest gold producer, which rose 3.11 per cent to $17.90 after its earnings beat estimates. Doughnut-maker Tim Hortons, whose fourth-quarter earnings were also better than expected, gained 3.57 per cent to $52.47.

Grocery store giant Loblaw Cos., however, fell 5.65 per cent to $35.25 after it missed estimates and lowered its earnings forecast.

Here’s the news investors were watching today:

Brace for debt shock, BoC warns

Tim Hortons profit falls, raises dividend

Loblaws misses estimates, warns of pressures to come

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

9:45 a.m.

• Bank of Canada governor Mark Carney speaks in New York at U.S. monetary policy forum

UNITED STATES

9:55 a.m.

• University of Michigan Consumer Sentiment Index (Feb): Economists expect a reading of 73, slightly up from last month

10 a.m.

• New home sales (Jan): Economists expect a 2.6% rise from the month before

CORPORATE NEWS

CANADA

• Eldorado Gold Corp. Q4 earnings: Analysts estimate 18 cents a share
• Enerplus Corp Q4 earnings

UNITED STATES

• jcpenney Co Inc Q4 earnings: Analysts estimate 67 cents a share
• Newmont Mining Corp Q4 earnings: Analysts estimate US$1.27 a share
• Pepco Holdings Inc Q4 earnings: Analysts estimate 18 cents a share
• The Washington Post Company Q4 earnings: Analysts estimate US$5.36 a share

While some markets stumbled on Wednesday, rising metal prices helped Canada’s benchmark stock index to its second strong finish this week.

TSX — 12701.26 +0.62% +77.90

S&P 500 — 1357.66 -0.33% -4.55

Dow — 12938.67 -0.21% -27.02

Nasdaq — 2933.17 -0.52% -15.40

The S&P/TSX composite rose 77.90 points, or 0.62%, to close at 12,701.26. Seven of the 10 sub-indexes advanced, led by materials, up 1.90%, and telecommunications, which rose 1.38%.

“Canada again rose to the top of the class and outperformed almost all other major global equity markets (on Wednesday),” wrote Scotia Capital economists Derek Holt and Dov Zigler in an afternoon note. The two pointed to a number of factors that could have been behind the weakness on global equity markets, including disappointing economic data out of China and Europe; sabre-rattling by Russia’s Foreign Minister over Iran, and the departure of UN nuclear inspectors from that country, which led to speculation that a confrontation is building and sent investors to safe havens, including gold.

“A third factor is persistent concern that the latest Greek aid package has solved nothing in the face of Greece’s deep structural challenges. Fourth, there may be an element of consolidation sweeping through markets following a strong rally in global equities since last fall that has run ahead of other asset classes.”

A report showing existing home sales in the U.S. rose less than expected in January also weighed on sentiment, particularly in the U.S., where the Dow Jones industrial average fell 27.02 points, or 0.21%, to 12,938.67, and the Nasdaq composite slipped 15.40 points, or 0.52%, to 2,933.17.

Canada’s junior Venture exchange rose 6.32 points, or 0.38%, to 1,684.95.

“On balance, things are slowly but surely improving,” Irwin Michael, a money manager at ABC Funds in Toronto, told Bloomberg. “There are a lot of investors who are chomping at the bit wanting to get invested. They’ll buy on weakness; they’ll stick their toe in the water and the market will sawtooth its way upwards.”

Commodity prices erased earlier losses to post positive results for the day, even though the gain for oil was slight — just three US cents, to US$106.28 a barrel in the April contract. Gold jumped $12.80 US to US$1,771.30 an ounce.

Gold producers benefited from the rise in the price of the precious metal, including Barrick Gold, which saw its share price rise 2.55%, to $49.48. Goldcorp shares rose 2.28% to $49.26, and Eldorado Gold went up 3.21% to $14.80.

The Canadian dollar had its first below-par close since the first of the month, falling 38 basis points to 99.96 US cents.

“Risk-seeking sentiment has been pared back in recent days, which is likely holding back some of the higher-beta currencies like the Canadian dollar and Australian dollar,” Brian Kim, a currency strategist at Royal Bank of Scotland Group PLC’s RBS Securities unit in Stamford, Conn., told Bloomberg.

Here’s the news investors were watching today:

Eurozone teeters on brink of recession

Rogers hikes dividend, launches $1B buy-back

Obama urges corporate tax cut

ON DECK THURSDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Survey of employment, payrolls and earnings

10:30 a.m.

• Bank of Canada review

UNITED STATES

8:30 a.m.

• Weekly jobless claims: Economists expect 355,000 claims, up from the week before

10 a.m.

• FHFA house price index (Dec, Q4): Economists expect 0.1% rise from the month before, 0.2% from the same quarter last year

CORPORATE NEWS

CANADA

• Tim Hortons Q3 earnings: Analysts’ estimate 62 cents a share
• Loblaw Companies Ltd. Q4 earnings: Analysts’ estimate 67 cents a share
• Rona Inc Q4 earnings: Analysts’ estimate 16 cents a share
• Onex Corp Q4 earnings

• Cascades Inc. Q4 earnings: Analysts’ estimate 7 cents a share
• Centerra Gold Inc Q4 earnings: Analysts’ estimate 35 cents a share
• Iamgold Corp. Q4 earnings: Analysts’ estimate 34 cents a share
• Lundin Mining Corp Q4 earnings: Analysts’ estimate 12 cents a share
• Stantec Inc Q4 earnings: Analysts’ estimate 57 cents a share

UNITED STATES

• American International Group Q4 earnings: Analysts’ estimate 59 cents a share
• Gap Inc Q4 earnings: Analysts’ estimate 42 cents a share
• Kohl’s Corp Q4 earnings: Analysts’ estimate US$1.80 a share
• Safeway Inc Q4 earnings: Analysts’ estimate 64 cents a share
• Target Corp Q4 earnings: Analysts’ estimate US$1.40 a share

The Dow Jones industrial average rose above 13,000 in early trading on Tuesday, but erased most of its gains after retail giant Walmart reported low prices hurt its margins and investors took a second look at the implications of the Greek bailout deal that caused the initial advances.

TSX — 12623.36 +1.32% +165.06

S&P 500 — 1362.21 +0.07% +0.98

Dow — 12965.69 +0.12% +15.82

Nasdaq — 2948.57 -0.11% -3.21

While the Dow dropped in later trading, Canada’s benchmark stock index held on to its gains, thanks to jumps in the prices of oil and gold. The S&P/TSX composite index closed the day at a five-month high of 12,623.36, up 165.06 points, or 1.32%. Seven of its 10 sub-indexes advanced, led by materials, which gained 3.03%, and energy, which rose 1.33%.

The Dow Jones industrial average swung between gains and losses in afternoon trading, ending with a gain of 15.82 points, or 0.12%, at 12,965.69, while the Nasdaq edged downward by 3.21 points, or 0.11%, to 2,948.57.

“U.S. equities put in a largely flat performance on the day, discarding any cause for optimism in the first day of trading in a shortened week that might have stemmed from China’s decision to cut its required reserve ratio on Saturday, and the announcement of the latest Greek aid deal,” Scotia Capital economists Derek Holt and Dov Zigler wrote in an afternoon note, adding there are two possible rationales for the performance of U.S. equities.

“One relates to disappointing U.S. earnings led by Walmart that swung the market bias from a gentle bid to equities toward red ink,” while the second could be that “the Dow has rallied 21% since the early October level and may have therefore priced in the relatively good news that is landing of late by way of upside surprises to U.S. indicators and policy moves in Europe and China.”

European finance ministers may have approved a 130-billion-euro ($172-billion) bailout for Greece, but observers say that doesn’t address the country’s long-term problems.

“The Greek bailout keeps the wheels on the bus,” James Dunigan, chief investment officer in Philadelphia for PNC Wealth Management, told Bloomberg. “The ride is a little smoother, but it doesn’t solve the longer-term issues.”

The price of crude oil closed Tuesday at US$105.50 a barrel, up $2.26 for the expiring March contract, and gold shot up US$32.60 to US$1,758.50 an ounce.

Canada’s junior Venture exchange rose 20.49 points, or 1.24%, to 1,678.63.

The Canadian dollar slipped 43 basis points to $1.0034 after Statistics Canada reported a decline in retail sales for December.

“The downtick in retail sales is instilling a bearish outlook for the Canadian dollar as it dampens the prospects for future growth,” David Song, a currency analyst in New York at DailyFX.com, the research unit of FXCM Inc., an online currency-trading service, told Bloomberg.

Here’s the news investors were watching today:

Europe seals Greek bailout, but …

BlackBerry PlayBook finally gets email

Fortis to buy CH Energy for $1-billion

Canada housing prices won’t crash: poll

ON DECK WEDNESDAY

ECONOMIC NEWS

UNITED STATES

8:55 a.m.

• Redbook

10 a.m.

• Existing home sales (Jan): Economists expect a 1% rise from the month before

CORPORATE NEWS

CANADA

• Rogers Communications Inc. Q4 earnings: Analysts expect 28 cents a share
• Sherritt International Corp Q4 earnings: Analysts expect 20 cents a share
• Yamana Gold Inc Q4 earnings: Analysts expect 24 cents a share

UNITED STATES

• Hewlett Packard Co. Q1 earnings: Analysts expect 87 cents a share
• The TJX Companies Inc Q4 earnings: Analysts expect 63 cents a share

North American stocks rallied Thursday on strong U.S. economic data and a sudden dose of optimism that a bailout package for debt-ridden Greece will be approved Monday.

TSX — 12485.59 +1.0% +123.56

S&P 500 — 1358.05 +1.1% +14.82

Dow — 12904.08 +0.96% +123.13

Nasdaq — 2959.85 +1.51% +44.02

The benchmark S&P/TSX composite index gained 123.57 points, or one per cent, to 12,485.59 after starting the day in retreat.

The gains came as oil and gold both reversed earlier losses, putting fresh wind in the sails of the heavily weighted TSX materials and energy sectors.

Gold closed up 30 US cents to $1,728.40 after falling US$13.80 to $1,714.30 an ounce in early trading.

Oil ended the day in positive territory, closing at US$102.31, up 51 US cents after posting an early loss of 0.9%.

“The one-two combination of significant progress toward deals on both the Greek bailout package . . . and positive U.S. economic data sent the bears running for cover, enabling stocks, commodities and risk currency groups to drive higher,” said CMC Markets analyst Colin Cieszynski.

The Canadian dollar was among those better-performing risk currencies, rising 26 basis points to US$1.0035 as the close approached.

The materials sub-index surged by more than two per cent, as a mixed bag of earnings from some of the country’s major gold producers sent their shares sharply higher.

Goldcorp rose 4.4% to $47.25, while Agnico-Eagle Mines added 7.2% to $36.57, Kinross added seven per cent to $11.07 and Barrick Gold gained 0.9% to $48.00.

Yellow Media shares fell one cent to an all-time low of 10 cents after Standard & Poor’s cut its long-term corporate credit rating on the telephone-directory publisher by three notches.

Nexen added four per cent to $19.71 despite reporting fourth-quarter profit that fell 73% to $43-million, or eight cents a share, after taking writedowns on oil sands and gas assets.

Encana added 4.3% to $20.15 after natural gas surged 14 US cents to US$2.56 per thousand cubic feet.

U.S. economic data was strong on several fronts, showing that claims for jobless benefits fell to the lowest level in four years, manufacturing activity picked up and housing starts rose more than forecast.

Meanwhile, news reports Thursday said the eurozone is putting the finishing touches to a second bailout deal of 130-billion euros ($170-billion) for Greece for eurozone finance ministers’ approval on Monday.

“We are almost there,” one eurozone official told Reuters. “Unless someone really comes up with an idea to undermine the whole deal, it should be approved on Monday.”

The Dow Jones industrial average advanced almost one per cent to 12,904.08, a gain of 123.13 points.

The Nasdaq composite index, meanwhile, added 44.02 points, or 1.51%, to 2,959.85.

European issues were mixed, with London’s FTSE dipping 0.12% to 5,885.38, the Paris CAC adding 0.09% to 3,393.25 and Frankfurt’s DAX edging down 0.09% to 6,751.96.

Here’s the news investors were watching today:

Greece finds extra budget savings amid scramble for bailout

RBC: Moody’s action ‘unwarranted’

Facebook value drops to US$98B in private market auction

ON DECK FRIDAY

ECONOMIC NEWS

CANADA

7 a.m.

• Consumer price index (Jan): Economists expect 0.3% rise from the month before, 2.3% gain year over year

8:30 a.m.

Leading indicators (Jan): Economists expect 0.6% rise

UNITED STATES
8:30 a.m.

• Consumer price index (Jan): Economists expect 0.3% rise from the month before, 2.8% year over year

10 a.m.

• Leading indicators (Jan): Economists expect 0.5% gain

CORPORATE NEWS

CANADA

• Encana Corp Q4 earnings: Analysts expect 13 cents a share
• Brookfield Asset Management Q4 earnings

UNITED STATES

• Campbell Soup Co Q2 earnings: Analysts expect 62 cents a share
• HJ Heinz Co Q3 earnings: Analysts expect 86 cents a share

Canadian stocks wavered in and out of positive territory on Wednesday as resolution of the Greek debt crisis appeared to be slipping away.

TSX — 12362.03 +0.06% +7.56

S&P 500 — 1343.23 -0.54% -7.27

Dow — 12780.95 -0.76^ -97.33

Nasdaq — 2915.83 -0.55% -16.00

As the 4 p.m. close approached, the benchmark S&P/TSX composite index was ahead 7.56 points, or 0.06%, to 12,362.03.

Markets continued to gyrate with every bit of news concerning the much-delayed eurozone bailout package for heavily indebted Greece.

The morning opened positively to news that China said at a China-EU summit it would continue to invest in European government debt and get more involved in efforts to help resolve the European debt crisis.

“It’s very clear that China realized the costs of a possible European recession that spreads to the rest of the world,” James Swanson, who oversees about $200-billion as chief investment strategist at Boston-based MFS Investment Management, told Bloomberg. “Yet they haven’t fixed their problems and China can’t fix their problems.”

As was apparent not soon after, when news came out that eurozone officials, unconvinced of Greece’s political resolve to implement austerity measures required for a 130-billion euro ($170-billion) bailout package were looking at ways to delay the package, possibly until after the country holds elections in April.

“We may see markets continue to thrash about within current trading ranges until the EU finance ministers meeting on Monday can settle the score,” said CMC Markets analyst Colin Cieszynski.

The Canadian market got little help from gold prices, which rose US$10.40 an ounce to US$1,728.10. The materials sub-index however was flat on the day.

Energy issues rose 0.36% as oil gained US$1.06 to $101.80.

Shares in oilsands player Cenovus Energy fell 1.23% to $38.12 despite reporting fourth-quarter profit more than tripled thanks to expansion of its Christina Lake operations and that it would increase its dividend by 10%.

Shares in Talisman Energy advanced 4.87% to $13.13 after it reporting it had narrowed its net loss in the fourth quarter to 11 cents a share from 34 cents a year earlier.

Harry Winston Diamond Corp. added 9.42% to $13.01 after Citigroup Inc. began coverage of the company with a “buy” rating.

Industrials were the worst performer of the day, down 0.91%.

The Canadian dollar edged up four basis points to US$1.0009.

The Dow Jones industrial average was harder hit than the TSX, falling 97.33 points, or 0.76%, to 12,780.87, despite data showing that production at U.S. factories rose in January by 0.7% after a revised 1.5% gain in December.

The Nasdaq composite index fell 16 points, or 0.55%, to 2,915.83

In overseas trading, European markets ended mixed, with London’s FTSE edging down 0.13% to 5,8902.16, the Paris CAC adding 0.44% to 3,390.35 and Frankfurt’s DAX adding 0.44% to 6,757.94.

Here’s the news investors were watching today:

EU mulls delaying Greek rescue

Drummond Report recommends wage freezes and increased class sizes amid ‘harsh reality’ for Ontario

QE3 is Wall Street wishful ‘fantasy’

ON DECK TUESDAY

ECONOMIC NEWS

CANADA

8:30 a.m.

• Manufacturing sales & orders (Dec): Economists expect 2% gain
• International Securities Transactions (Dec): Economists expect $10-billion

UNITED STATES

8:30 a.m.

• Producer price index (Jan): Economists expect 0.4% gain
• Weekly jobless claim: Economists expect 365,000 claims, up from the month before
• Housing starts (Jan): Economists expect 2.7% gain
• Building permits (Jan): Economists expect 1.3% gain

10 a.m.

• Philadelphia Fed Index (Feb): Economists expect reading of 9, up from the month before

CORPORATE NEWS

CANADA

• Barrick Gold Q4 earnings: Analysts’ estimate: US$1.30 a share
• Fairfax Financial Holdings Ltd. Q4 earnings estimate: loss of US$2.60 a share
• Finning International Inc Q4 earnings estimate: 34 cents a share
• Nexen Inc Q4 earnings estimate: 43 cents a share
• West Fraser Timber Co ltd Q4 earnings estimate: 8 cents a share

UNITED STATES

• Apache Corp Q4 earnings: Analysts’ estimate: US$2.87 a share
• JM Smucker Co Q3 earnings: Analysts’ estimate: US$1.41 a share
• Molson Coors Brewing Company Q4 earnings: Analysts’ estimate: 71 cents a share

Markets were buffeted Tuesday by the eurozone’s seemingly interminable approach to solving the Greek debt crisis.

TSX — 12354.47 -0.36% -44.22

S&P 500 — 1350.50 -0.09% -1.27

Dow — 12878.28 +0.03% +4.24

Nasdaq — 2931.83 +0.02% +0.44

North American indexes turned lower in mid-afternoon trading when investors looking for closure on the issue discovered it would drag on even longer, and that a meeting to finalize a 130-billion euro ($171-billion) bailout package had been cancelled.

Eurogroup chairman Jean-Claude Juncker said that a Wednesday meeting of eurozone finance ministers was put off and that only a conference call would be held, as Greece had yet to provide assurances on the implementation of the program.

But markets rallied back late in the session, when news reports said the Greek conservative party leader was expected to deliver a letter of commitment to international lenders.

The benchmark S&P/TSX composite index ended the session down 44.22 points, or 0.36%, to 12,354.47.

Markets opened lower after a report showed that U.S. retail sales grew at only half the expected rate in January.

Gold prices lost US$7.20 to US$1,717.70 an ounce while U.S. crude oil futures slipped from earlier gains, closing at US$100.74 a barrel, down 17 US cents.

The Canadian dollar closed down two basis points at US$1.0005.

“Although stocks and commodities were able to take Moody’s downgrade of six EU countries including Italy and Spain in stride, a disappointing U.S. retail sales report and ongoing difficulties in completing a Greek debt and bailout deal have continued to weigh on markets,” said CMC Markets analyst Colin Cieszynski.

Canadian Natural Resources was the leading stock to the downside on Tuesday, falling almost five per cent to $36.36 after cutting its annual production guidance at its Horizon oilsands operation by more than 10%, saying the plant, damaged earlier this month, won’t be fixed until March.

Shares in pipeline giant TransCanada Corp. gained 1.62% to $42.15 after reporting fourth-quarter profit rose 39% to $375-million, and raising its dividend by five per cent.

Manulife Financial slipped 1.00% to $11.86 after Fitch Ratings cut its outlook on the company to “negative.”

Giant film-screen projector maker Imax Corp. surged more than 11% to US$24.53 on the New York Stock Exchange after saying box-office revenue increased 45% this year through Feb. 12 from the same period in 2011.

The Dow Jones industrial average fought back from a session spent in negative territory with a final-minutes surge to close up 4.24 points, or 0.03%, to 12,878.28, while the Nasdaq edged up 0.44 points, or 0.02% to 2,931.83.

European stocks ended the session in the red, with London’s FTSE losing 0.10% to 5,899.87, the Paris CAC dipping 0.26% to 3,375.64 and Frankfurt’s DAX slipping 0.15% to 6,728.19.

The Venture composite index fell 19.33 points, or 1.17%, to 1,630.03.

In Asia, Japan’s Nikkei rose 0.59% to 9,052.07 and Hong Kong’s Hang Seng edged up 0.15% to 20,917.83.

Here’s the news investors were watching today:

EU president postpones Greece meeting

Fitch downgrades Manulife outlook, affirms ratings

TransCanada’s Q4 profit jumps 39%; hopes to start Keystone XL by 2015

12 nations on Brussels’ blacklist

Britain’s credit rating at risk

Bank of Japan surprises with easing

ON DECK WEDNESDAY

ECONOMIC NEWS

CANADA

• Existing home sales (Jan)

UNITED STATES

8:30 a.m.

• Empire State Manufacturing Survey (Feb): Economists expect a reading of 15, up from the month before

9 a.m.

• Foreign purchase of U.S. securities (Dec): Economists expect US$45-billion

9:15 a.m.

• Industrial production (Jan): Economists expect 0.79% rise
• Capacity utilization (Jan): Economists expect 78.6%, up slightly from the month before

10 a.m.

• NAHB Housing index (Feb)

2 p.m.

• U.S. Federal Reserve releases minute of January policy meeting

CORPORATE NEWS

CANADA

• Goldcorp Inc Q4 earnings: Analysts’ estimate: 61 cents a share
• Agnico-Eagle Mines Ltd. Q4 earnings: 48 cents a share
• Cenovus Energy Inc Q4 earnings: 55 cents a share
• CI Financial Corp Q4 earnings: 31 cents a share
• Enbridge Inc Q4 earnings: 39 cents a share
• Kinross Gold Corp Q4 earnings: 21 cents a share
• Talisman Energy Inc Q4 earnings: 20 cents a share

UNITED STATES

• Abercrombie & Fitch Co. Q4 earnings: Analysts’ estimate: US$1.27 a share
• CBS Corp. Q4 earnings: 53 cents a share
• CF Industries Holding Inc. Q4 earnings: US$6.82 a share
• Comcast Corp. Q4 earnings: 41 cents a share
• Deere and Co. Q1 earnings: US$1.23 a share
• Dr Pepper Snapple Group Inc. Q4 earnings: 75 cents a share
• ITT Corp Q4 earnings: 36 cents a share
• Marriott International Inc Q4 earnings: 47 cents a share

Canadian stocks fell Tuesday, led by declines in financials and materials stocks, after a report showed retail sales in the United States rose less than forecast in January.

At midday, the benchmark S&P/TSX composite index was off 48.41 points, or 0.39%, to 12,350.28. It is the fifth time in the past seven sessions the index has fallen.

Declines were across the board, with all of the major sub-sectors declining, and 168 stocks declining versus 78 advancing and seven unchanged.

Royal Bank of Canada fell 0.65% to $53.31 while Bank of Nova Scotia dipped 0.40% to $52.26.

Global indexes were led lower by U.S. retail sales that grew by 0.4% in January, compared with expectations of an 0.8% gain.

“We are vulnerable to a setback,” Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54-billion, told Bloomberg.

“The market had been bid higher on the back of a remarkable array of positive surprises. I don’t view the retail sales report as bad, but rather as lack of continued better-than-expected news. In addition, there’s still fluidity to the whole European situation.”

On that front, eurozone officials were examining a proposed Greek austerity budget and were to decide Wednesday if finance ministers can sign off on the deal.

Gold prices fell, dropping 70 US cents to US$1,724.70, along with copper prices, which were off 3.65 US cents to US$3.81 a pound.

U.S. crude oil rose 62 US cents to US$101.53 a barrel.

The Canadian dollar slipped 15 basis points to 99.92 US cents.

Shares in pipeline giant TransCanada Corp. rose 1.45% to $42.08 after reporting fourth-quarter profit rose 39% to $375-million, and raising its dividend by 5%.

RioCan Real Estate Investment Trust shares were off slightly, down 0.59% to $26.79, after it posted a 20% rise in fourth-quarter funds from operations, a key measure of profitability for real estate companies, to $100-million, or 36 cents a unit, from $83-million, or 33 cents a unit, a year earlier.

Canadian Natural Resources was the most influential decliner on the TSX, falling 3.85% to $36.70 after cutting its annual production guidance at its Horizon oilsands operation by more than 10%, saying the plant, damaged earlier this month, won’t be fixed until March.

Manulife Financial Corp. slipped 2.5% to $11.68 after Fitch Ratings cut its outlook on the company to “negative.”

The Dow Jones industrial average was off 20.13 points, or 0.16%, to 12,853.91 while the Nasdaq composite index fell 8.89 points, or 0.30%, 2,922.50

International indexes also declined. In Europe, London’s FTSE slipped 0.07% to 5,901.47 while the Paris CAC dropped 0.26% to 3,375.64 and Frankfurt’s DAX edged down 0.15% to 6,728.19.

In Asia, Japan’s Nikkei rose 0.59% to 9,052.07 and Hong Kong’s Hang Seng edged up 0.15% to 20,917.83.

Canadian stocks battled all day Monday to stay in positive territory as investors were reluctant to break out the champagne over progress on the Greek debt crisis.

TSX — 12398.69 +0.07% +9.27

S&P 500 — 1351.77 +0.68% +9.13

Dow — 12874.04 +0.57% +72.81

Nasdaq — 2931.39 +0.95% +27.51

Canada’s benchmark S&P/TSX composite index ended ahead by 9.27 points, or 0.07%, to 12,398.69, held back by losses in the materials sector.

“Stocks and commodities have been trading moderately higher today after Greece’s parliament passed another round of austerity measures overnight despite another weekend of large-scale protests in Athens,” said CMC Markets analyst Colin Cieszynski.

“The gains, however, have mainly consisted of clawing back some of Friday’s losses and not new breakouts. This suggests that the street views this development as baby steps, not a giant leap forward.

“The question facing markets, and EU finance ministers when they meet on Wednesday is whether or not Greek politicians will be able to carry through with the measures, particularly with an election coming up this spring.”

Gold prices slipped 40 cents to $1,724.90. Copper prices also fell, losing 2.25 US cents to US$3.83 a pound. The TSX materials sector was the worst performing group of the day, falling 0.48%.

Barrick Gold Corp. fell 0.58% to $47.97, while Goldcorp lost 0.48% to $45.70. Copper producer Mercator Minerals fell 3.43% to $1.69.

Oil markets reacted more positively to the Greek news, with U.S. crude futures climbing US$2.24 a barrel to $100.91.

Canadian Oil Sands Ltd., the largest partner in Syncrude Canada Ltd., advanced 2.68% to $22.59 after a major processing unit resumed operations sooner than expected and was operating near capacity.

Shares in Bombardier rose 1.46% to $4.85 after securing new orders for its regional jets.

Manitoba Telecom gained 5.08% to $33.69 after the company announced Friday that fourth-quarter profits rose 18 per cent and RBC raised its rating on the stock Monday to “outperform” from “sector perform.”

The Canadian dollar edged back beyond parity with the U.S. dollar — up 35 basis points to 1.0007 US cents — after briefly slipping below the mark Friday.

In the U.S., the Dow Jones industrial average gained 72.81 points, or 0.57%, to 12,874.04 and the Nasdaq composite index added 27.51 points, or 0.95%, to 2,931.39.

But gains in Europe were limited by rioting that accompanied the Greek debt deal.

“It is not good for economic confidence when you see riots and austerity cuts are on the front page. It stops people spending on the real world and erodes consumer confidence,” Joe Rundle, head of trading at ETX Capital, told Reuters.

In Europe, London’s FTSE closed up 0.91% to 5,905.70 while the Paris CAC gained 0.34% to 3,384.55 and Frankfurt’s DAX rose 0.68% to 6,738.47.

Here’s the news investors were watching today:

Jim Flaherty, Mark Carney step up to object to U.S. banking rule

Greeks still to convince EU on bailout commitments

Wow! Apple just broke another record

Barrick to sell out of Russia’s Highland Gold

ON DECK TUESDAY

ECONOMIC NEWS

UNITED STATES

7:30 a.m.

• Small business economic trends survey: Economists expect a reading of 95, up from the month before

8:30 a.m.

• Retail sales (Jan): Economists expect a 0.8% rise
• Import price index (Jan): Economists expect a 0.3% rise

8:55 a.m.

• Redbook

10 a.m.

• Business inventories (Dec): Economists expect 0.4% rise

CORPORATE NEWS

CANADA

• RioCan REIT Q4 earnings
• TransCanada Corp Q4 earnings: Analysts expect 55 cents a share

UNITED STATES

• Avon Products Inc Q4 earnings: Analysts expect 51 cents a share
• Goodyear Tire & Rubber Q4 earnings: Analysts expect 20 cents a share
• Host Hotels and Resorts Inc Q4 earnings: Analysts expect 4 cents a share
• Metlife Inc Q4 earnings: Analysts expect US$1.24 a share
• Marsh and Mclennan Companies Inc. Q4 earnings: Analysts expect 45 cents a share
• Questar Corp Q4 earnings: Analysts expect 33 cents a share
• Watson Pharmaceuticals Inc Q4 earnings: Analysts expect US$1.76 a share