Equities in Canada’s largest market recovered from Wednesday’s heavy losses, mostly thanks to strength in consumer staple issues.
The S&P/TSX Composite Index rocketed 124.72 points to work its way up to noon hour at 16,273.22
The Canadian dollar faded 0.02 cents to 76.08 cents U.S.
Top percentage gainers on the TSX were shares of First Majestic Silver, which added 30 cents, or 4.4% to $7.05, and B2gold Corp., which rose five cents, or 1.8%, to $2.84.
Shares of Interfor Corporation gained 10 cents to $22.06 while shares of Lucara Diamond fell two cents to $2.17.
On the economic calendar, Statistics Canada reported that manufacturing sales rose 1.1% to $58.1 billion in June, following a 1.5% increase in May. The increase in June was mainly due to sharply higher sales in the petroleum and coal product industry, while sales were down in the chemicals and food manufacturing industries.
ON BAYSTREET
The TSX Venture Exchange gained 4.02 points to 671.90
All but two of the 12 subgroups moved higher, as consumer staples strengthened 1.5%, while materials and energy surged 1%
The two laggards were health-care, skidding 1%, while real-estate dipped 0.1%.
ON WALLSTREET
Stocks traded sharply higher on Thursday on renewed hope that a resolution to a trade dispute with China could be on the horizon. Investors also cheered strong quarterly results from WalMart.
The Dow Jones Industrial Average vaulted 350.03 points, or 1.4%, to 25,512.44, led by gains in WalMart and Cisco Systems.
The S&P 500 heightened 26.3 points to 2,844.68, as consumer staples and telecom outperformed.
The NASDAQ leaped 67.76 points to 7,841.88
Shares of Boeing gained 3.4%, and Caterpillar, yet another bellwether for global trade, popped 2.2%. Both companies get a large share of their revenue from outside the U.S., so their stocks are highly sensitive to trade-related news.
Stocks also got a boost from strong WalMart quarterly earnings. The results sent Walmart shares surging 10% after the company reported its biggest jump in U.S. sales in a decade. The surge led WalMart to contribute about 60 points to the price-weighted Dow. The results also lifted shares of Target, which gained 1.8%.
Cisco Systems also reported better-than-expected earnings, sending its stock up 4.1%. The company's results got a boost from an income surge from segments like cyber security and applications.
National Economic Council Director Larry Kudlow confirmed to the media earlier reports saying China and the U.S. will hold a fresh round of trade talks later in August, giving investors hope that the two world's largest economies can solve an ongoing trade spat.
The U.S. and China have been engaged in a trade spat recently as the U.S. slaps tariffs on Chinese imported goods. China, meanwhile, has retaliated with tariffs of its own on U.S. goods. Investors worry that an escalation in trade fears could lead to a global economic slowdown and lower corporate profits
Economically speaking, U.S. weekly jobless claims totaled 212,000 last week, slightly below than estimates of 215,000. Meanwhile, housing starts totaled 1.168 million in July, well below the expected 1.26 million.
Prices for the benchmark for the 10-year U.S. Treasury fell, raising yields to 2.88% from Wednesday’s 2.86%. Treasury prices and yields move in opposite directions.
Oil prices gathered 21 cents at $65.22 U.S. a barrel.
Gold prices added $3.10 to $1,188.10 U.S. an ounce.
