Energy and base metals stocks sent the Toronto stock market higher Wednesday.
New York markets gave up strong early gains as earnings warnings and another indication of huge job losses in the United States trumped early optimism from a report on the service sector.
Toronto's S&P/TSX composite index, which surged more than 150 points late in the morning, finished the session up 64.46 points to 8,693.09.
The market has been trading in a range between roughly 8,200 and 8,900 since mid-January and some analysts were hard put to explain the sharp rise.
"We're just in a trading range - that's it," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.
"I'm skeptical of any sort of move up. It's nice to see - we're not going to zero, there's obviously value there but until we see a sustainable rally, I'm skeptical."
The TSX Venture Exchange climbed 20.8 points to 890.05 and the Canadian dollar moved down 0.12 cent to 81.17 cents US.
New York's Dow Jones industrials dropped 121.7 points to 7,956.66.
The Nasdaq composite index slipped 1.25 points to 1,515.05, while the S&P 500 was off 6.28 points to 832.23 as economic data indicated the pace of contraction in the service sector is declining.
The Institute for Supply Management said its non-manufacturing index rose to 42.9 in January from 40.1 in December, better than the average estimate of 39. In November, the index reached a record low of 37.4.
Walt Disney Co. shares fell $1.62 to US$19. after it reported a 32 per cent decline in quarterly profits amid a downturn that chief executive Robert Iger called "likely to be the weakest economy in our lifetime."
Costco Wholesale Corp. also warned its profit for the quarter ending in February will "substantially" miss Wall Street estimates due to poor sales and margins. It also said it will not provide financial guidance for the rest of the financial year as its shares fell $3.14 to US$42.98.
Kraft Foods shares lost $2.63 to US$26.11 after it said fourth-quarter profit fell 72 per cent due to costs related to a restructuring program and cut 2009 guidance.
Two days before the release of January employment data, the latest ADP Employment Report in the U.S. showed that 522,000 jobs were lost in January, in line with forecasts.
The TSX energy sector maintained a 1.4 per cent rise even as U.S. crude inventories jumped a much more than expected 7.2 million barrels last week as overall demand for motor fuel continued to slide. The March crude contract in New York closed down 46 cents to US$40.32 a barrel.
Suncor Inc. (TSX:SU) gained 77 cents to $24.30 and Petro-Canada (TSX:PCA) advanced 30 cents to $27.94.
The financial sector moved down 1.3 per cent as investors worry about the fate of a bailout plan for troubled U.S. banks.
CIBC (TSX:CM) fell $1.06 to $45.44 while Bank of Montreal (TSX:BMO) fell 97 cents to $31.70.
The Dutch parent company of ING Canada Inc. (TSX:IIC) is selling a $2-billion stake in the Canadian subsidiary. ING Canada shares tumbled $4.97 or 14.7 per cent to $28.82.
In New York, Bank of America tumbled 60 cents to US$4.70.
The April bullion contract on the Nymex moved up $9.70 to US$902.20, lifting the gold sector 2.4 per cent. Goldcorp Inc. (TSX:G) rose $1.72 to $36.52 and Barrick Gold Corp. (TSX:ABX) gained $1.61 to $45.73.
The base metals sector climbed four per cent as the March copper contract in New York rose six per cent at US$1.531 a pound. Teck Cominco Ltd. (TSX:TCK.B) advanced 18 cents to $4.70 and First Quantum Minerals ran up $2.04 to $25.84.
The consumer staples sector was also a drag on the TSX, falling 1.6 per cent.
Shares in Saputo Inc. (TSX:SAP) lost 85 cents to $18.75 after it said its third-quarter profits dropped nearly 30 per cent to $57.8 million because of a cheese inventory writedown, depressed international selling prices and plant closure costs.
Shares in Research In Motion (TSX:RIM) improved 83 cents to $69.10 after top executives reached a deal to settle a dispute with the Ontario Securities Commission over the company's past stock option practices.
The OSC will hold a hearing Thursday to consider the settlement that includes co-chief executives Jim Balsillie and Mike Lazaridis and several other executives and directors.
Shares in Nova Chemicals Corp. (TSX:NCX.TO) surged 57 cents or 41 per cent to $1.95 on speculation the raw plastics maker has secured $100 million in financing to help it meet its financial obligations. Its stock was hammered Monday, plunging 32 per cent on renewed worries about its ability to meet its debt obligations.
Magna International Inc. (TSX:MG.A) shares rose 98 cents to $35.76 after it said it will close its New Process Gear plant in Syracuse, N.Y., after workers rejected concessions.
Railpower Technologies Corp. (TSX:P), Quebec-based maker of eco-friendly locomotives, says it is seeking court protection under the Companies' Creditors Arrangement Act. Its U.S. subsidiary, Railpower Hybrid Technologies Corp., is also seeking creditor protection. Its shares plunged three cents to five cents.
