Roger Biduk - Commodites & Confidence Lead Bay Street Higher

Roger Biduk writes:

North American stock markets higher Monday as commodities strengthened and investor confidence was bolstered by the U.S. government's bailout plan for Citigroup.
Toronto's S&P/TSX composite index gained 285.48 points to 8,440.87, and the Canadian dollar surged 2.70 cents to 81 cents US on a weaker greenback.
The TSX Venture Exchange rose 18.62 to 722.79.

Leading the TSX gain were energy stocks, ahead 7.6 per cent, on a boost from a higher price for oil. The January crude contract was up $4.57 to close at US$54.50 a barrel on the Nymex.

BCE Inc. shares (TSX:BCE) rose nearly 10 per cent from the Citigroup arrangement on optimism that the $52-billion purchase of Canada's largest telecom company will go ahead. The bank is a lead lender in the transaction, and BCE stock gained $3.39 to $37.94.

On the TSX, financials stocks gained 4.7 per cent after Royal Bank (TSX:RY) said it will report a profit of $1.1 billion. That's down 15 per cent from a year ago on charges related to the shakeup in financial markets but all of the Canadian bank stocks have already declined in the past week in anticipation of lowered profits. Shares in Canada's largest bank, which reports Dec. 5, slipped at the open, then shifted higher, up $2.52 at $39.
Last week, TD Bank (TSX:TD) and Scotiabank (TSX:BNS) previewed their expected losses for the fourth quarter, though both won't release their full results until next week. TD announced after the markets closed Monday that it will raise $1.2 billion in an issue of common shares. The bank said it will issue 30.4 million shares at a price of $39.50 per share, a discount to Monday's closing price of $42.90 and but above a 52-week low of $38.33 established earlier in the day.

Roger Biduk writes:
Mining stocks were up 6.8 per cent. Hudbay Minerals (TSX:HBM) moved up five per cent, rising 15 cents to $3.31.
The gold index gained 1.5 per cent as December bullion closed ahead $27.70 to US$819.50 an ounce.

The Conference Board of Canada reported that its consumer confidence index fell again this month, losing 2.9 points to 71. The think-tank notes that consumer sentiment as at "depths previously reached only in 1982 and 1990, which were both periods of recession."
Investors cheered the prospect of fiscal stimulus for the overall economy. In Canada, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have indicated they plan deficit spending.

Gran Tierra Energy (TSX:GTE) shares fell eight per cent after the company suspended production in two oilfields in southern Colombia due to a general strike in the region. Gran Tierra stock crumbled throughout the day before returning to where it opened, closing even at $2.94.
NovaGold Resources Inc. (TSX:NG) shares plummeted 67 per cent after the company said it's suspending operations at Rock Creek because it has been unable to raise new money and faces being unable to meet its financial obligations next month. Stock slid $1.48 to 72 cents.
Health care company Johnson & Johnson plans to acquire Omrix Biopharmaceuticals Inc. for US$438 million - or $25 per share - in a plan to expand its surgical product unit.

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