Markets in Toronto broke from the starting gates on Thursday after comments from Federal Reserve Chairman Ben Bernanke that the U.S. central bank was not as close to winding up its monetary stimulus program as markets anticipated improved investor sentiment.
The S&P/TSX Composite Index soared 116.40 points, or nearly 1%, early Thursday to 12,423.33
The Canadian dollar perked 0.40 cents to 95.95 cents U.S.
Corus Entertainment Inc said third-quarter profit more than doubled, mainly due to the sale of its non-controlling interest in specialty channel Food Network Canada. Corus shares caved $1.23, or 5%, to $23.52.
Canaccord Genuity raised the target price on Cineplex Inc. by $1 to $31 on new estimates and valuation. Cineplex dropped two cents to $37.60
Also, Canaccord started coverage on Petroamerica Oil with a buy rating given the company's growth potential, attractive valuation, and light oil orientation. Petroamerica shares were unchanged in the first hour to 28 cents.
Lastly, Canaccord raised the target on Sirius XM Canada to $8.20 from $7.75 to reflect the strong dividend yield and high dividend growth prospects. Sirius shares improved 11 cents to $7.81.
About half of the Federal Reserve's policymakers felt the U.S. central bank's bond-buying stimulus should be brought to a halt by year end when they met in June, but many wanted reassurance the U.S. jobs recovery was on solid ground before any policy retreat.
On the economic slate, Statistics Canada said its new housing price index kept its winning streak alive by rising 0.1% in May, following a 0.2% increase in April.
ON BAYSTREET
All but two of the 14 Toronto subgroups were higher soon after the opening bell, led by a 4.5% jump in gold, while metals and mining solidified 4.4% and global base metals grew 3.5%.
The two laggards were information technology, sliding 0.5%, and health-care, off 0.04%.
ON WALLSTREET
U.S. stocks opened in record territory Thursday, bouncing back from the previous day's pullback as investors welcomed comments from Federal Reserve chairman Ben Bernanke.
The Dow Jones Industrials grew 139.04 points to 15,430.70, putting the blue-chip average above the record closing high it hit in May.
The S&P 500 index strengthen 16.74 points to 1,669.36, also topping its record closing high. The NASDAQ Composite increased 33.36 points to 3,554.12
Microsoft announced a widely-anticipated reorganization of its business operations, including a shakeup of high-level managers, according to various reports.
Shares of Yum! Brands rose after the restaurant operator reported earnings that beat expectations.
Quarterly results are coming up Friday from mega-banks JPMorgan and Wells Fargo. Overall, earnings for companies in the S&P 500 are expected to grow 0.8% versus last year, according to FactSet.
In economic news, the number of Americans filing for first-time unemployment benefits rose to a two-month high, according to the government's weekly report. But economists were quick to brush off the rise as a result of volatile number-crunching, rather than a discouraging sign for the economy.
Prices for the 10-year U.S. Treasury hiked, dropping yields to 2.58% from Wednesday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.22 to $105.30 U.S. a barrel.
Gold prices gained $34.70 to $1,282.10 U.S. an ounce.
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