The Toronto stock market turned higher Tuesday afternoon amid some strong earnings news from oil producer Suncor Energy and business technology company CGI Group Inc. along with optimism over BlackBerry’s new smartphone.
The S&P/TSX index vaulted 143.83 points, or 1.2%, to close Tuesday at 12,456.50
The Canadian dollar progressed 0.41 cents to 99.28 cents U.S.
Shares of Suncor rose $1.77, or 6%, to $31.41 after it posted operating earnings of $1.37 billion, or 90 cents per share Monday night, compared with $1.32 billion, or 84 cents per share, in the same period a year earlier. That handily beat the average analyst estimate of 75 cents per share, according to Thomson Reuters.
Canada’s largest energy company also increased its quarterly dividend to 20 cents per share from 13 cents and announced a $2-billion share buyback.
Shares of CGI Group Inc. also pushed higher after the company reported better than expected results. The company earned $114.2 million or 36 cents per diluted share in its latest quarter, compared with $105.7 million or 40 cents per share a year ago when the company had fewer shares. Revenue soared to $2.53 billion from $1.065 billion, on the acquisition last year of Logica.
CGI shares were up $4.87, or 18%, to $31.90.
On the TSX, the information technology sector was the leading advancer, thanks in part to CGI’s earnings report.
But the sector was also supported by BlackBerry, which was up 72 cents, or 4.6%, to $16.50 a day before the company’s new Q10 smartphone is released in the Greater Toronto area, before it expands to the rest of Canada later in the week. The keyboard version of the smartphone is expected to be popular with business users, especially with bankers and traders on Bay Street.
The consumer staples sector also provided the TSX with some lift, as Loblaw Cos. gained $1.12 to $42.75 a day before the grocer delivers earnings.
In the energy sector, Imperial Oil gained two cents cents to $40.08.
The gold sector led decliners, as Kinross Gold was unchanged at $5.49.
The base metals sector was down as July copper on the Nymex slipped four cents to $3.19 U.S. a pound. Turquoise Hill Resources added 22 cents to $7.10.
In other earnings news, Thomson Reuters reported a seven per cent decline in operating profit in the first quarter, citing severance costs and an increase in depreciation and amortization expenses.
The global news and information company said underlying operating profit was $462 million, with adjusted earnings of 38 cents per share. Its shares were down 35 cents to $33.75.
On the economic slate, Statistics Canada reported that GDP grew 0.3% in February, the same pace as in January, largely on the mining and energy gains.
The agency also reported that its industrial product price index edged up 0.1% in March, led by higher prices for motor vehicles. Its raw materials price index fell 1.7% in March, mostly because of lower prices for crude oil.
ON BAYSTREET
The TSX Venture Exchange squeezed higher Tuesday by 0.87 points to 965.80
All but one of the 14 Toronto subgroups moved north before the closing bell, led by a 6.1% surge in information technology issues, 2.2% for utilities, and 1.6% for consumer staples.
Only health-care stocks weren’t so hale, dropping 1.2%.
ON WALLSTREET
U.S. stocks erased earlier losses Tuesday afternoon, pushing the S&P 500 close to an all-time high, while the NASDAQ remained at its highest level in more than 12 years.
The Dow Jones Industrials gained 21.05 points to end the session at 14,839.80
The S&P 500 index gained 3.96 to 1,597.57 The NASDAQ Composite regained 21.77 points to 3,328.79
All three indexes were on track to clock in gains of almost 2% for April.
The Dow and S&P 500 are on track for a 1.7% increase, while the NASDAQ is up about 1.8% for the month. That would mark the fifth straight up month for the Dow, and the sixth for the S&P 500 and NASDAQ.
Apple shares rose more than 3% as the company took another a step toward selling bonds for the first time in at least 17 years.
The advance in Apple's stock, which is now up almost 16% from its 16-month low hit earlier this month, boosted the tech-heavy NASDAQ as well as the broader market.
Shares of Best Buy rallied after the retailer announced an agreement to sell its European stake to Carphone Warehouse (CPW). The stock was the top performer in the S&P 500 Tuesday, and is the second-biggest gainer in the broad index this year, with shares up more than 120% since January.
Pfizer posted worse-than-expected profit and sales and lowered its outlook for the year. The lackluster results sent shares of the drug maker down more than 3%, making it the biggest loser in the Dow.
Pitney Bowes reported earnings that plunged from a year ago and came in below expectations. The mailing and package services company also slashed its quarterly dividend in half. Shares tumbled almost 20%, making Pitney Bowes the biggest decliner in the S&P 500.
But earnings out of European companies including oil giant BP and banks UBS and Deutsche Bank surprised investors with better-than-expected results. Shares of all three companies were sharply higher.
On the economic beat, the S&P/Case-Shiller 20-city home price index rose a slightly-higher-than-expected 9.3% in February, marking the biggest gain since the height of the housing bubble.
The Institute for Supply Management's index of manufacturing activity in the Midwest dropped to 49 in April, missing expectations and signaling contraction in the sector for first time since September 2009.
The ISM's reading on national manufacturing activity is due Wednesday, and economists are still expecting it to show a modest expansion.
In other economic news, the U.S. Conference Board's monthly consumer confidence index rose to 68.1 in April, from 59.7 the prior month
Prices on the 10-year U.S. Treasury lost ground, pushing yields up to 1.68% from Monday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.31 to $93.18 U.S. a barrel.
Gold prices were up $6.60 at $1,474.00 U.S. an ounce
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