Investors shrugged off another round of disappointing U.S. economic news, driving stocks higher on Wednesday and ending a four-day losing streak for the Dow Jones industrial average.
The Dow closed at 10,060.06, up 19.61 points, or 0.2 per cent. The broader S&P 500 closed at 1055.33, up 3.46 points, or 0.3 per cent. In Canada, the S&P/TSX composite index closed at 11,648.12, up 90.77 points, or 0.8 per cent -- recovering about 180 points from its low.
The gains came despite a dismal reading on U.S. new home sales, which fell 12.4 per cent in July and reignited concerns that the market is sliding again. As well, durable goods orders rose just 0.3 per cent, which was well below expectations. In particular, business capital spending slipped about 8 per cent.
The disappointments hit stock performance at the start of trading, with the Dow falling well below the 10,000-threshold. However, things picked up as the day progressed.
In Canada, bank stocks rose after Canadian Imperial Bank of Commerce reported a 47 per cent rise in its fiscal third-quarter earnings, easing some fears about the reporting season. CIBC shares rose 4.9 per cent, while Bank of Nova Scotia rose 1.7 per cent.
Gold producers were strong after the price of gold rose to $1,241 (U.S.) an ounce, up about $8. Barrick Gold Corp. rose 3.3 per cent and Goldcorp Inc. rose 3.7 per cent.
However, energy stocks were mixed after the price of crude oil reversed earlier losses and closed in New York at $72.52 a barrel, up 89 cents. Canadian Natural Resources Ltd. rose 0.6 per cent but Talisman Energy Inc. fell 1.2 per cent and Suncor Energy Inc. fell 0.4 per cent.