The Canadian Press

Malcolm Morrison

The Toronto stock market closed slightly higher Tuesday amid another dose of solid U.S. consumer data.

The S&P/TSX composite index edged up 14.49 points to 12,044.21 with gains paced by the energy sector. The TSX Venture Exchange shed 1.85 points to 1,570.38.

The mood was positive following a report from the U.S. Conference Board showing that its consumer confidence index rose to 52.5 in March, recovering about half of the nearly 11 points it lost in February. Analysts had been expecting a reading of 50 for March.

“What could have accounted for the brighter mood?” asked BMO senior economist Jennifer Lee.

“Well, job losses have lessened, the unemployment rate is back below 10% — which isn’t saying too much but at least it is no longer double-digit — equity markets hit 1 1/2-year highs this month, President (Barack) Obama signed the landmark health-care bill and more homeowner assistance plans kicked in.”

The good news came a day after other data showed U.S. consumer spending, which accounts for three-quarters of the world’s largest economy, rose for a fifth consecutive month in February, by 0.3%.

The energy sector advanced 1.1% as the May crude contract on the New York Mercantile Exchange rose 20 cents to US$82.37 a barrel. Oil ran ahead more than US$2 a barrel Monday as a weaker American currency, along with the bullish U.S. economic data, sent crude and metal prices sharply higher.

Suncor Energy (TSX:SU) improved by 95 cents to C$32.90 and Canadian Oil Sands Trust (TSX:COS.UN) climbed 81 cents to C$30.11.

The industrials sector was up 0.54%.

Bombardier Aerospace (TSX:BBD.B) shares rose 11 cents to $6.11 after disclosing it has signed a memorandum of understanding with CLC Leasing Co., one of China’s top leasing companies, clearing the way for CLC to offer pre-delivery payment financing, delivery financing and leasing solutions to customers of Bombardier CSeries, Q400 and CRJ aircraft.

The consumer discretionary sector was ahead 0.35% with shares in auto parts giant Magna International (TSX:MG.A) up 32 cents to $63.65.

The sector rose followed amid news Ontario automakers are driving up production. Honda Canada said Tuesday it will start up a second shift and add 400 jobs at its No. 2 assembly plant in central Ontario early next year. Just last week, General Motors of Canada said that it would recall more than 700 laid-off employees at two of its Ontario plants.

The base metals sector lost 0.69% following a sharp rise on Monday even as the May copper contract on the Nymex added three cents to a 19-month high of US$3.56 a pound. First Quantum Minerals (TSX:FM) declined $6.56 to C$86 while Teck Resources (TSX:TCK.B) gained 98 cents to C$44.17.

Gold stocks were the leading decliner as the June bullion contract in New York dipped $5.40 to US$1,105.70 an ounce. Goldcorp Inc. (TSX:G) was down 80 cents at C$37.52.

Research In Motion Ltd. (TSX:RIM) was a drag on the TSX a day before the BlackBerry maker releases its latest earnings results. Its shares fell $1 to $76.26.

The Canadian dollar was ahead 0.12 of a cent to 98.09 cents amid a report from Statistics Canada that the Industrial Product Price Index was unchanged in February, while the Raw Materials Price Index rose 0.4%, led by higher prices for mineral fuels.

Compared with a year earlier, the industrial index was down 0.6% in February, while raw materials prices were 27.8% higher.

As first-quarter trading winds down, the TSX is up about 2%, with most of that gain coming in the last six weeks amid sentiment that economic conditions are improving.

“We started on a very, very bumpy road,” said Serge Pepin, director of investments, BMO Investments, citing the Greece debt crisis and moves by China to restrict lending as two items that cast a shadow over trading.

“There was a lot of nervousness and it wasn’t really until midway through the quarter that (investors thought) ‘You know what, things are not as bad as we think they are.”’

Investors also took in a report showing that U.S. home prices showed the smallest annual decline in almost three years in January. The Standard & Poor’s/Case-Shiller 20-city home price index fell just 0.7% from last year on a seasonally adjusted basis. Better still, prices rose 0.3% from December to January, the eighth consecutive monthly gain.

In New York, the Dow Jones industrial average gained 11.56 points to 10,907.42. The Nasdaq composite index gained 6.33 points to 2,410.69 while the S&P 500 index inched up 0.05 of a point to 1,173.27