The Toronto Stock Exchange took back some gains at the open Thursday as commodity prices gained ground on expectations China may move to stimulate its economy.
The S&P/TSX composite index opened Thursday up 21.19 points to 12,254.05
The Canadian dollar inched up 0.21 cents Thursday to 101.67 cents U.S.
Among stocks to watch this morning, struggling BlackBerry maker Research In Motion releases its second-quarter financial results after markets close. The anticipation gripped investors, who sent the company’s stock up seven cents to $6.95 soon after the opening.
China's CNOOC Ltd believes it is poised to win Canada's go-ahead for the $15.1-billion purchase of oil producer Nexen Inc, after talks with provincial leaders boosted its confidence that Canada values China as an investor in its huge oil sands sector and as a future energy customer. Nexen shares faded three cents early Thursday to $24.88.
Environmental groups have launched legal action against the Canadian government to force it to protect endangered species along the route of Enbridge Inc.’s proposed $6-billion Northern Gateway crude oil pipeline and in West Coast waters where oil tankers would pick up the Gateway crude. Enbridge stock slipped 19 cents to $38.68 a share.
ON BAYSTREET
The TSX Venture Exchange grew 6.64 points to 1,313.50
All but four of the 14 Toronto subgroups were higher, led by the metals and mining, up 1.3%, energy, gaining 0.7%, and global base metals, improving 0.5%.
The four laggards were health-care, off 0.4%, telecoms and consumer discretionaries, each down 0.3%.
ON WALLSTREET
Stocks opened modestly higher Thursday, as investors reacted to mixed economic reports.
The Dow Jones Industrial average moved higher by 21.47 points, to open Thursday at 13,435.
The S&P 500 index notched higher 4.87 points, to 1,438.19, and the Nasdaq Composite Index climbed 10.93 points to 3,104.63
Investors woke up to a barrage of data Thursday. On a positive note, U.S. jobless claims fell more than expected, but in a sign that domestic growth is lagging, second-quarter GDP growth was revised downward.
Shares of Sealy rose more than 4% after rival company Tempur-Pedic said it was buying the company for $228 million U.S. Sealy reported zero earnings per share, falling short of expectations. The company canceled the morning's earnings call, citing the new deal.
Meanwhile, Temper-Pedic shares surged 17%.
HP shares fell, after investment bank Jefferies downgraded the computer maker's stock and lowered its target price.
Shares of Advanced Micro Devices jumped about 1% after the chip maker unveiled a new, faster chip that's expected to be 25% and come with integrated graphics.
Goodyear Tire & Rubber shares rose 4% after the company revealed a new road vehicle tire, one that will meet the European Union's highest fuel efficiency standards, rules which go into effect in November.
Shares of spice and condiment maker McCormick & Company Inc fell more than 2% following the company's quarterly report in which CEO Alan Wilson warned of continued "volatile material costs." The food company reported earnings per share of 78 cents U.S, beating expectations.
Discover Financial Services is scheduled to release its quarterly results ahead of the market open, with analysts surveyed by Thomson Reuters expecting the company to post earnings of $1.04 U.S. a share.
Micron Technology is expected to report a loss of 22 cents U.S. per share, while Nike is anticipated to announce earnings of $1.12 U.S. per share.
After the market closes, Research in Motion will report its results. The troubled BlackBerry maker is expected to post a loss of 43 cents U.S. per share. Shares were up 1% in pre-market trading.
Some investors were looking to China for reasons for optimism.
The People's Bank of China has injected a net ¥365 billion ($58 billion U.S.) into money markets this week, just as China's marquee stock index -- the Shanghai Composite -- reached a three-year low.
On the economic front, durable goods orders dropped more than anticipated to $198.5 billion U.S. in August, 13% lower than the U.S. Census Bureau reported the previous month.
Later in the morning, a report on pending home sales is due from the National Association of Realtors. Economists predict sales to have ticked up 0.5% in August, following a 2.4% jump in the previous month.
The price on the benchmark 10-year U.S. Treasury lost ground, raising yields to 1.63% from Wednesday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil for November delivery picked up $1.19 to $91.17 U.S. a barrel.
Gold futures for December delivery rose $11.00 to $1,764.70 U.S. an ounce.
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