TORONTO - The Toronto stock market closed higher Tuesday as data showing sharply deteriorating U.S. consumer confidence pushed gold stocks to another record as investors worried about the health of the U.S. recovery.
The advance in gold shares on the TSX helped offset a drop in a major Canadian corporate heavyweight listing -- Research In Motion -- a day after the debut of its response to Apple's iPad.
The S&P/TSX composite index was up 88.28 points to 12,278.88, while the TSX Venture Exchange was ahead 8.48 points to 1,703.11.
The Canadian dollar was down 0.18 of a cent to 97.07 cents US.
Research In Motion Ltd. (TSX:RIM) (NASDAQ:RIMM) was down $1.27 or 2.6 per cent to $48.40 in Toronto after the BlackBerry maker showed off its new PlayBook tablet computer for the first time on Monday. RIM is set to launch the device early in 2011.
"I would have been much happier if they had come along and said 'we're going to be ready for the Christmas shopping season, ' " said Don Reed, president and CEO of Franklin Templeton Investment Corp.
"If they have their prototype out there, and if it works well, then gee, isn't this a period when everybody would be banging down the doors to go and buy it?"
Gold stocks led the advancers as investors pushed prices further into record territory. Bullion rose $9.70 to US$1,308.30 an ounce. Gold has closed at a series of record highs during September as investors look for a hedge against fears of inflation and U.S. currency weakness. Barrick Gold Corp. (TSX:ABX) improved by $1.26 or 2.7 per cent to C$48.26 while Kinross Gold Corp. (TSX:K) was ahead 41 cents or 2.1 per cent to $19.65.
The base metals component also helped pull the TSX up, rising 1.5 per cent as the December copper contract on the Nymex shook off early losses to move up four cents at US$3.64 a pound. Ivanhoe Mines Ltd. (TSX:IVN) was a major advancer in the group, up $1.37 or 5.7 per cent to C$25.22 after it reported a "remarkable" kilometre-long gold and copper find at its Oyu Tolgoi mine in Mongolia.
The energy sector was 0.4 per cent higher as oil prices reversed early gains ahead of the latest U.S. crude inventory figures. The November oil contract on the New York Mercantile Exchange closed down 34 cents to US$76.18 a barrel. Canadian Natural Resources (TSX:CNQ) added 35 cents to C$34.58 while Suncor Energy (TSX:SU) rose 42 cents to $32.51.
Financial stocks were also positive, up 0.6 per cent as Bank of Montreal (TSX:BMO) gained 74 cents to $59.98.
Earlier in the session, the U.S. Conference Board said its September reading on consumer confidence fell sharply from August and was well below forecasts.
Scott Rostan, founder of Training The Street in New York, which provides courses in financial modelling and corporate valuation, said the gain in stocks compared to the big decline in confidence was indicative of a growing schism between consumers and traders.
"There's a big dichotomy between Main Street sentiment and Wall Street sentiment," Rostan said. Right now, traders are more focused on sentiment and confidence among corporate executives than consumers, he added.
New York's Dow Jones industrial average moved 46.10 points higher to 10,858.14.
The Nasdaq composite index gained 9.82 points to 2,379.59, while the S&P 500 index rose 5.54 points to 1,147.70.
In other corporate news, Nexen Inc. (TSX:NXY) said Monday that its Appomattox project in the Gulf of Mexico has more than 250 million barrels of oil equivalent. The company made the estimate of the deep water project after drilling an exploration well and two appraisal sidetracks. Its shares were up three cents to $20.69.
Drug developer Endo Pharmaceuticals Holdings Inc. said Tuesday it is buying Qualitest Pharmaceuticals for US$1.2 billion in a move to diversify its business and strengthen its position in the generic and pain drug markets.
Toyota Motor Corp., the world's biggest automaker, is getting into the minicar market. The company said Tuesday that it would expand its product line to include mini-vehicles made by subsidiary Daihatsu Motor Co. starting in autumn 2011 in Japan.
