Big Rally on Bay Street

Roger Biduk writes:

North American stock markets chalked up huge rallies late in the afternoon Tuesday, resulting in one of the biggest one-day gains ever for the Dow Jones industrial average and a big bounce in Toronto
Toronto's S&P/TSX composite index rose 614.29 points or 7.2 per cent to close at 9,151.63. The TSX Venture Exchange added 7.95 points to 816.94.
That mended a good chunk of the 757-point hole dug in Toronto on Monday, when growing worries about the length and depth of a global recession pushed down Canada's main index by eight per cent.
Tuesday's rallies follow a series of market declines over the past weeks that have shocked even experienced market professionals and lowered Toronto's benchmark index to levels not seen in four years.
The speed and depth of the decline has forced some large-scale investors, such as hedge funds, to sell some of their most desirable holdings to repay borrowed money or meet other obligations.
Investors fled from mutual funds last month, leaving the Canadian industry with net redemptions of almost $4.5 billion - the most of any month on record.

Roger Biduk writes:
The Canadian dollar was up 0.37 cent to 77.96 cents US, still at depths not seen in about four years, because of weak commodity prices, economic uncertainty and a resurgent American currency. The loonie is down about 18 per cent since the start of October.

Among the bad news on the jobs front Tuesday, appliance giant Whirlpool Corp. said it will cut about 5,000 jobs by the end of 2009 while Toronto-based mining company Breakwater Resources Ltd.(TSX:BWR) announced plans to suspend operations at two Canadian mines, resulting in an undetermined number of layoffs.

The TSX energy sector rose 7.8 per cent as the December crude contract reversed direction to move down 49 cents at US$62.73 a barrel on the New York Mercantile Exchange. EnCana Corp. (TSX:ECA) advanced $4.46 to $55.50 and Suncor Energy Inc. (TSX:SU) moved ahead $2.22 to $25.40.

The financial sector was up 6.55 per cent. Royal Bank rose $2.50 to $45 while A advanced $2.36 to $38.68 despite a downgrade to "sell" by an analyst at Dundee Securities.

The gold sector ran up 15 per cent although bullion slipped $2.40 to US$740.50 an ounce. Goldcorp Inc. (TSX:G) climbed $1.90 to $20.65 while Barrick Gold Corp. (TSX:ABX) ran ahead $2.81 or 12.5 per cent to $25.32.

The base metals sector moved ahead 8.6 per cent as copper turned up 5.35 cents to US$1.8585 a pound. Teck Cominco Ltd. (TSX:TCK.B) rose 73 cents to $11.49 while Sherritt International (TSX:S) rose 87 cents to $4.070.

Roger Biduk writes:
In third-quarter earnings reports, Rogers Communications Inc. (TSX:RCI.B) booked an 84 per cent increase in third-quarter net income to $495 million as operating revenue grew 14 per cent from a year ago to $2.98 billion. Rogers shares advanced $2.93 or 10 per cent to $32.
Canadian Pacific Railway Ltd. (TSX:CP) shares were up $6.85 or 15.75 per cent to $50.35 after third-quarter net income dropped 21 per cent to $172.7 million on accounting items but management reported steady operating results and maintained its full-year profit forecast.
Pipeline and power utility operator TransCanada Corp. (TSX:TRP) said its third-quarter earnings bulked up 20 per cent to $390 million. Its shares rose $1.81 to $34.44.

Canadian Tire (TSX:CTC.A) shares rose $1.50 to $43.50 after it said it is planning to open two experimental stores in Ontario that will offer an expanded variety of food and other consumable items as part of a new product assortment.

The positive showing on North American stock exchanges came alongside similar strong advances in Asia following steep losses.
Japan's Nikkei stock average jumped 6.4 per cent and Hong Kong's Hang Seng index surged 14.4 per cent - its biggest gain in 11 years - a day after plunging more than 12 per cent.

On the TSX, advances beat declines 862 to 725 with 215 unchanged as 600 million shares traded worth $6.7 billion.

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