Oil drives TsX TO TwO-week high

TORONTO • The Toronto stock market closed at its highest level in two weeks on Tuesday as oil prices rose and encouraging data emerged on the U.S. economy.

The S&P/TSX composite index was up 47.92 points to 12,642.19.

The Canadian dollar was down 0.38 of a cent to US96.68¢. Energy stocks were ahead 0.2% as the September crude contract gained 72¢ to settle at US$106.83 a barrel.

December gold bullion dropped $13.50 to US$1,321.20 an ounce, while September copper increased 1¢ to US$3.31 a pound.

The TSX financials sector moved up 0.6% ahead of bank earnings season which kicks off later this month. Royal Bank increased $1.14 to $64.05.

Information technology stocks were mostly higher, with the sector rising 0.8%.

BlackBerry shares were volatile, closing ahead 1.7% after rising about 10% earlier in the session. The company announced Monday that it was exploring its “strategic options,” which could include a possible sale. Its stock ended up 19¢ to $11.32.

Wall Street traders responded positively to the latest data on the U.S. economy. The Commerce Department says retail sales edged up 0.2% in July from June, despite a drop in auto sales. The Dow was up 31.33 points to 15,451.01, the Nasdaq rose 14.49 points to 3,684.44 and the S&P 500 gained 4.69 points to 1,694.16.

“The U. S. economy is gaining some strength ... and continues to do better,” said Allan Small, senior adviser at DWM Securities. “The numbers that are coming out of retail sales are strong enough we’re not talking a recession, but not strong enough that we’re going like gangbusters.”

A rise in U.S. Treasury yields lifted financial companies, as higher interest rates could help them generate better profit margins. Growth-oriented sectors like industrial and technology companies gained on signs that Europe is poised to emerge from recession. That helped offset declines in homebuilders and other stocks that are sensitive to rising borrowing costs.

The yield on the 10-year note climbed close to its highest in two years after industrial production in the eurozone rose in June from the month before and investor confidence rose in Germany, the region’s biggest economy. European sales account for about 10% of revenue for companies in the Standard & Poor’s 500 index, according to data from S&P Dow Jones Indices.

The yield, which rises when bond prices fall, is also climbing on speculation that the Federal Reserve will cut its stimulus as soon as the economy recovers. Atlanta Fed President Dennis Lockhart said Tuesday that it was too early to say when the bank would ease back on its stimulus.

In corporate developments, rewards point operator Aimia Inc. is likely to face heightened competition in the coming months after ending a longtime partnership with CIBC. While the company has secured a new partnership agreement with TD Bank for a credit card, competitors see the changes as an opportunity to lure away customers.

Torstar Corp.’s flagship newspaper, the has begun charging a fee for non-subscribers who access its website more than 10 times a month. The company’s shares were ahead 1¢ to $5.70.