Stocks jump as solid data offer diversion

TORONTO • The Toronto stock market closed higher Tuesday as solid U.S. economic data persuaded traders to pick up stocks beaten down by concern over the U.S. Federal Reserve turning off the stimulus taps as well as trouble in China’s credit system.

The S&P/TSX composite index jumped 168.56 points to 12,005.42.

The Canadian dollar slipped 0.21 of a cent to US95.16¢ amid rising U.S. bond yields.

U.S. indexes were also positive with the Dow industrials up 100.75 points at 14,760.31, the Nasdaq rising 27.13 points to 3,347.89 and the S&P 500 index climbing 14.94 points to 1,588.03.

Standard & Poor’s/Case-Shiller 20-city home price index showed that U.S. home prices jumped 12.1% in April from a year ago. The index also showed a 2.5% increase in April from March, the biggest monthover-month gain on records dating to 2000.

Also, the U.S. Commerce Department said new home sales rose 2.1% last month compared with April to a seasonally adjusted annual rate of 476,000, the highest level since July 2008.

Traders also took in some major acquisition news in the health-care sector.

Two of Canada’s largest medical lab operators will be combined under a $1.22-billion friendly takeover deal backed by one of Ontario’s largest public sector pension funds. LifeLabs Medical Laboratory Services will pay $10.75 per share cash and assume $255-million of debt to acquire all of CML HealthCareInc. of Mississauga, Ont.