Source: The Canadian Press

The Toronto stock market closed higher Tuesday as rising commodities prices and positive U.S. data outweighed a discouraging report on Canada’s economy.

The S&P/TSX composite index added 57.23 points to 12,952.88 — retreating from above 13,000 points earlier in the afternoon. If the market had closed above that milestone, it would have been only the second time since mid-2008. On Nov. 8, the composite closed at 13,052.48.

The Toronto Venture Exchange gained 21.64 points to 2,072.44.

Crude oil prices fell with the January contract on the New York Mercantile Exchange down $1.62 at US$84.11 a barrel.

Meanwhile, the December gold contract rose $19 to US$1,385 an ounce. Copper was up seven cents at US$3.82 a pound.

The Canadian dollar was off 0.76 of a cent at 97.41 cents US, paring back some earlier losses after a disappointing third-quarter reading on economic growth.

On the TSX, the gold, mining and information technology sectors led advancers. Gold giant Barrick Gold Corp. (TSX:ABX) added $1.72 to C$52.91.

Statistics Canada reported that gross domestic product rose at an annualized 1% in the third quarter, much lower than the 1.4% growth economists had been expecting.

But the report didn’t have much of an impact on the TSX because investors were focused on positive data from south of the border, suggested Don Reed, president and CEO of Franklin Templeton Investments.

U.S. data released Tuesday morning showed hopeful signs for the American economy as consumer confidence and manufacturing purchase orders came in higher than expected.

“Consumer confidence — that says it all. If you’re answering one of those polls and you’re feeling confident what are you going to do?” Reed said.

“You’re going to open up the wallet and let the moths fly out
and start putting some of that money down on presents.” Traders,
still spooked about the possibility of debt contagion in Europe that
could slow growth on the continent and weaken the euro, are putting
money into investments considered safe, which is buoying the price
of gold and the U.S. dollar.


Meanwhile, shares in TSX information technology heavyweight Research in Motion (TSX:RIM) jumped 5%, or $3.24, to $63.25 after a Jefferies analyst upgraded the company’s stock to a “buy” rating on the expectation of very healthy demand for the highly anticipated BlackBerry tablet, due out in January.

Mining stocks gained 1% on higher base metals prices. Shares in diversified miner Teck Resources (TSX:TCK.B) gained $1.71 to $51.01.

The financial sector fell into the red just before close, down 0.8% after making gains most of the session in advance of bank earnings season, which kicks off this week.

After markets closed, the National Bank of Canada (TSX:NA) reported fourth-quarter earnings of $287 million, beating analyst expectations. Canada’s sixth-largest bank, as expected, became the first of the big banks to increase its dividend.

Prior to the close, shares in National Bank gave back 89 cents to $67.84 after being bolstered last week by expectations of a dividend increase.

Shares in Toronto-Dominion Bank (TSX:TD), which reports later this week, lost 14 cents to $74.69.

In Canadian corporate news, AGF Management Ltd. (TSX:AGF.B) is buying investment management firm Acuity for $325 million in a cash-and-share deal. Shares in AGF lost four cents to $17.22 apiece.

Montreal-based Mega Brands Inc. (TSX:MB) shares gained 5%, or three cents, to 62 cents after it announced it was teaming with Electronic Arts Inc. (Nasdaq:ERTS) to develop a version of the Mega Bloks construction toys based on EA’s “Need for Speed” video game franchise.

The Dow Jones industrial average was down 46.47 points at 11,006.02 after a brief swing to the positive. It had been down as many as 110 points earlier on concerns that Europe’s debt crisis was spreading.

The broader Standard & Poor’s 500 index fell 7.21 points to 1,180.55. The Nasdaq was down 26.99 points at 2,498.23.

The U.S. markets narrowed losses after President Barack Obama and Republican legislators promised to seek a compromise before the end of the year on extending Bush-era tax cuts.

A monthly survey that showed Americans’ confidence in the economy rose in November to the highest level in five months also helped to push U.S. stocks closer to positive territory.

The Conference Board’s index of consumer confidence jumped to a five-month high of 54.1 in November from 49.9 in October.

The reading is an encouraging sign at the beginning of the holiday shopping season. But confidence remains weak as Americans grapple with high unemployment. Economists watch confidence closely because consumer spending accounts for about 70% of U.S. economic activity and is critical to a strong rebound.

A poor reading on Standard & Poor’s S&P/Case-Shiller index kept some U.S. buyers at bay. The index found that U.S. home prices fell 0.6% in September from August. Eighteen of 20 cities surveyed recorded monthly price declines.