Strong economic data and solid bank earnings from the United States helped push the Toronto stock market higher Thursday.
The S&P/TSX Composite Index gained 81.58 points to reach noon at 12,650.35, slightly off its highs of the morning.
The Canadian dollar regained 0.12 cents to 96.20 cents U.S.
On Thursday, most TSX sectors were higher.
In the financials sector, Scotiabank advanced 81 cents to $58.85 while Manulife Financial was ahead 36 cents to $18.34.
The energy sector gained as benchmark crude for August delivery was up.
Despite cooling economic growth in China, the price of oil was underpinned by another sizable decline in U.S. oil supplies. The U.S. crude inventory fell by 6.9 million barrels last week, bringing the three-week decline to 27.1 million barrels.
Canadian Natural Resources was up 73 cents to $34.10.
The consumer staples sector was also up with food company Saputo ahead 88 cents to $49.63.
Shoppers Drug Mart posted quarterly earnings of $147 million or 73 cents a share, one cent above a consensus estimate and its shares added 20 cents to $60.45.
The Shoppers board and management are supporting a $12.4-billion takeover offer from Loblaw, announced earlier this week.
Copper prices shook off early losses and the September contract on the Nymex gained one cent to $3.14 U.S. a pound. The base metals sector edged up and First Quantum Minerals climbed 34 cents to $16.49.
The gold sector rose as Centerra Gold improved by 11 cents to $4.12.
On the economic slate, Statistics Canada reported that wholesale sales rose 2.3% to $50.3 billion in May, the largest rate of growth since the beginning of 2011, mostly due to higher sales in the agricultural supplies and food industries.
What’s more, the agency reported that those of us on regular Employment Insurance (EI) were fewer by 12,300, or 2.4%, to 508,500 in May. Compared with May 2012, the number of people receiving regular EI benefits was down 7.4%.
ON BAYSTREET
The TSX Venture Exchange was positive 1.51 points to 912.33
All but three of the 14 Toronto subgroups remained positive, as financials shot 1.1% higher, energy stocks gained 1%, and consumer staples were 0.9% to the good.
The two laggards were real-estate, off 0.3%, and health-care, ailing but 0.02%. Utilities were flat by noon ET.
ON WALLSTREET
Investors pushed the Dow and S&P 500 to new trading highs Thursday, as they welcomed a batch of strong earnings and a drop in jobless claims.
The Dow spiked 102.01 points to pause midday Thursday at 15,572.50
The S&P 500 index improved 9.66 points to 1,690.57. The NASDAQ Composite was up 6.64 points to 3,616.64
IBM shares climbed after the tech stalwart said its net income for the second quarter rose 3% to $4.3 billion U.S, excluding special charges. IBM also raised its outlook for the year. The company's stock was among the top performers in the Dow Thursday.
Shares of Morgan Stanley jumped after the financial firm reported a quarterly profit in line with estimates, though revenue beat forecasts.
Shares of rival banks including Bank of America, JPMorgan Chase and Goldman Sachs also increased sharply.
UnitedHealth Group also reported earnings above forecasts and improved its outlook. Shares of the insurance giant were among the the best performing in the S&P 500.
In other earnings news, Verizon reported a 21% jump in quarterly net income from a year earlier.
Nokia's stock price dropped after the Finnish phone maker reported a 24% plunge in quarterly sales from a year earlier.
Late Wednesday, Intel reported second-quarter profits that fell 29% versus a year prior, sending shares lower. The company also said it expects revenue to be flat this year, after previously forecasting a modest increase.
Aside from earnings, Dell shares rose after the company postponed the final vote on its pending $24.4-billion U.S. buyout offer from founder Michael Dell and private equity firm Silver Lake
U.S. Federal Reserve Chairman Ben Bernanke appeared before the Senate Banking Committee Thursday. He testified before the House Financial Services Committee on Wednesday, reiterating that the Fed will keep its stimulus policies in place for as long as necessary.
His testimony will be the same but investors will be closely listening to the Q&A period to see if Bernanke continues to stick to his core position, which is that monetary policy will remain highly accommodating.
Economically speaking, the U.S. government released its weekly report on initial jobless claims, which declined to 334,000 for the week ended July 13. Claims were expected to drop to 348,000, according to a consensus of economist forecasts.
Prices for the 10-year U.S. Treasury slid, upping yields to 2.53% from Wednesday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.44 to $107.92 U.S. a barrel.
Gold prices gathered $5.50 to $1,283 U.S. an ounce.
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