Stockhouse @ the Bell: Stocks up as Summers exits race for fed job

Chris Parry Chris Parry, Stockhouse.com
0 Comments| September 16, 2013


TORONTO - North American markets were mostly higher as investors bet that stimulus funding from the Fed will continue to flow for a little while longer following news that economist Larry Summers is out of the race for the top job at the U.S. central bank.
 
The S&P/TSX composite index climbed 93.48 points to 12,816.88, while the TSX Venture Exchange eased down 1.96 points to 939.54. The Canadian dollar lifted 0.20 of a cent to 96.93 cents US.
 
Summers has long been perceived as a critic to the Fed's aggressive $85-billion-a-month bond-buying program, which has helped push down interest rates to spur lending and sent equity markets higher. Now, with Summers out of the running, investors feel the next Fed chairman could be someone more supportive of the so-called quantitative easing program.
 
The Dow Jones industrials surged 118.72 points to 15,494.78 and the broader market measure, the S&P 500, added 9.61 points to 1,697.60. After being positive for most of the day, the Nasdaq fell 4.34 points to 3,717.85, pulled down by losses from tech giant Apple Inc., which unveiled two new iPhone models last week.
 
On the corporate front, shares in Aimia Inc. (TSX:T.AIM, Stock Forum), CIBC (TSX:T.CM, Stock Forum) and TD Bank (TSX:T.TD, Stock Forum) all rose on news that the three partners have reached an agreement over the popular Aeroplan loyalty points program. Under the deal, each bank would have the rights to half the portfolio of accounts that offer customers loyalty points, which can be exchanged for airline tickets and other goods.
 
Commodities were mixed as the October crude contract dipped $1.62 to US$106.59 a barrel. December gold bullion saw an uptick of $9.20 to US$1,317.80 an ounce. December copper was up two cents at US$3.22 a pound.

(With files from The Canadian Press)

For news about small stocks that made big moves in Monday’s trading, please read the
Stockhouse Canadian Small and Micro-cap Stock Report

Tags: BUSINESS SERVICES BANKS - GLOBAL

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