TSX up aS dow hiTS record high

By Ma lcolM Mo rrison The TSX closed higher while New York’s Dow Jones industrials moved further into record territory Wednesday, building on the gains of the previous session amid data showing the American economy is slowly recovering.

The S&P/TSX composite index gained 95.92 points to 12,831.96 and the TSX Venture Exchange dipped 2.49 points to 1,109.72.

The Canadian dollar fell US0.33¢ to US96.95¢ after the Bank of Canada kept its key rate unchanged at 1% and indicated that persistent economic weakness and low inflation mean a hike is a long way off.

Positive employment data helped push the Dow Jones industrial average to a fresh record high for a second day after closing Tuesday at 14,254, its highest level since early October 2007. Payroll firm ADP said the private sector created 198,000 jobs last month.

The data came out two days ahead of the U.S. government’s employment report for February. Economists have been expecting that report to show the economy created about 155,000 jobs.

The Federal Reserve’s latest economic survey also supported buyers on Wednesday. The central bank’s so-called Beige Book said the U.S. economy expanded in all parts of the country in January and February, helped by strong auto sales, a continued recovery in housing and improved job prospects.

The Dow Jones industrial average gained 42.47 points to 14,296.24, the second day in a row the blue-chip barometer hit a record high close. The Nasdaq composite index was down 1.77 points to 3,222.36 while the S&P 500 index advanced 1.67 points to 1,541.46.

“We’re at an all-time high [in New York] and that can just kind of feed off itself,” said Garey Aitken, chief investment officer at Bissett Investment Management.

“I can’t help but think that helps the psyche of the investor on the street when they see good news for equity markets.”

The TSX is still almost 15% shy of its record close of 15,073 in June 2008.

And although it’s lagged New York so far this year, its performance outside of materials has been very positive, led by a 14% year-to-date jump in industrial stocks and a 6% runup in financials.

The gold sector was ahead about 4.3% as April bullion closed unchanged at US$1,574.90 an ounce. Goldcorp Inc. improved by $1.54 to $34.44. The tech sector ran up 2.39% with

BlackBerry gaining 95¢ or 7.36% to $13.85 after the smartphone company secured the second major supply contract this week for its new BlackBerry Z10 devices.