North American stock markets have booked a strong start to the new year, forging to triple-digit gains in the major indexes as strong commodity prices and a bullish U.S. economic indicator put a positive spin on the first trading day of 2010.
The S&P/TSX composite index closed up 120.79 points, or 1 per cent, at 11,866.90. The Dow Jones industrial average rose 155.91 points or 1.5 per cent to 10,583.96, the S&P 500 gained 17.89 points or 1.6 per cent to 1,132.99, and the Nasdaq composite index jumped 39.27 points or 1.7 per cent to 2,308.42.
Canada's market got a lift from higher in commodity prices, thanks to U.S.-dollar weakness and a U.S. cold snap that boosted energy demand. A mining strike in Chile also pushed copper prices up nearly 2 per cent, to 16-month highs.
U.S. stocks, meanwhile, got a boost from a better-than-expected reading on the Institution for Supply Management's manufacturing index for December, a closely watched indicator of U.S. industrial activity. The index came in at 55.9, its highest level in almost four years.
The first few days of January are often a strong time for stocks, as investors who did tax-loss selling and shuffled to the sidelines ahead of the calendar year-end step back into the market looking to take on new positions. That may have contributed to Monday's strength.
Overall, six of the TSX's 10 industry sectors closed higher, led by materials, up 2.6 per cent, and energy, up 1.8 per cent. The technology group leads on the downside, off 2.6 per cent, as often-volatile sector heavyweight Research in Motion has dropped 3.3 per cent.
Crude oil rose $2.16 (U.S.) to $81.52 a barrel in New York, its highest close since October of 2008. Gold gained $24.50 to $1,120.70 an ounce. Natural gas jumped 30 cents to $5.87 per million British thermal units.
The Canadian dollar climbed 1 cent to 96.00 cents (U.S.).
Looking ahead to Tuesday, investors will be watching for the premarket release of Canadian wholesale prices, as well as U.S. factory orders and pending home sales, both of which are due out after the market opens. There are no notable earnings reports on the calendar.