Stocks rebounded strongly on Tuesday, removing the immediate concern that Canada's benchmark index was slipping into correction territory after a recent losing streak.
The S&P/TSX composite index, which endured a triple-digit loss on Monday, closed at 13,097.82, up 158.10 points or 1.2 per cent. In the United States, where major indexes have turned in six consecutive losing weeks, the Dow Jones industrial average closed at 12,076.11, up 123.14 points or 1 per cent. The broader S&P 500 closed at 1287.87, up 16.04 points or 1.3 per cent.
Strong quarterly results from Best Buy Co. Inc., along with a better-than-expected reading on U.S. retail sales in May, helped lift the mood on the U.S. economic recovery. Best Buy rose 4.6 per cent. Department store operator J.C. Penney Co. Inc. rose 17.5 per cent - but largely related to news that Apple Inc.'s head of retail was joining the company later this year. Apple shares rose 1.8 per cent.
Other big moves were mostly confined to economically sensitive stocks, including commodity producers. Alcoa Inc. rose 2.1 per cent, Caterpillar Inc. rose 2.5 per cent, Suncor Energy Inc. rose 2.1 per cent and Teck Resources Ltd. rose 3 per cent.
Big U.S. bank stocks were left out of the rally, though, with Bank of America Corp. down 1.6 per cent and JPMorgan Chase & Co. down 0.2 per cent.
Meanwhile, Sino-Forest Corp. slumped another 32.5 per cent after reporting a quarterly loss, bringing the shares to a new low.
David Berman