The Toronto stock market was sharply higher Thursday as commodity prices advanced amid strong showings in manufacturing indexes in China, the U.S. and Canada.
The S&P/TSX Composite Index improved 107.32 points, to end Thursday at 12,593.96
The Canadian dollar slumped 0.68 cents to 96.64 cents U.S.
Traders also digested big losses handed in by two major gold miners and an announcement from TransCanada Corp that it's going ahead with its Energy East pipeline project to transport crude from western provinces as far east as Saint John, N.B. TransCanada shares were ahead $1.08 to $48.01.
Among other energy plays, Canadian Natural Resources rose 88 cents to $32.71.
Imperial Oil Ltd. weighed on the sector as it said its net income was $327 million in the second quarter, a decline from $635 million in the year-earlier period. The main reason cited by the company was a $264-million non-cash charge related to its conversion of a refinery in Dartmouth, N.S., into a fuels terminal.
Its net income per share was 38 cents, below analyst estimates of 85 cents. Adjusted earnings were 34 cents per share compared with an analyst estimate of $1 per share and its shares slipped $1.06 to $43.01.
The industrials sector advanced and Canadian Pacific Railway improved by $3.66 to $129.79.
Shares in transport giant Bombardier Inc. dipped half a cent to $4.95 as it said it had adjusted net income totaling $158 million U.S. in the third quarter, equivalent to nine cents per share and in line with analyst estimates.
Bombardier's revenue was about $300 million U.S. higher than last year, rising to $4.4 billion U.S., slightly better than the estimate of $4.34 billion U.S., but the adjusted earnings were down slightly from the second quarter of 2012.
The base metals sector climbed while copper added to Wednesday's eight-cent rise, up five cents to $3.17 U.S. a pound. Teck Resources advanced 49 cents to $24.55 while HudBay Minerals dropped 33 cents to $6.59 as the miner reported deepening losses.
Its second-quarter loss came in at $52.7 million or 31 cents a share, compared to a loss of $29.6 million or 17 cents a year ago.
Financials were mixed with Royal Bank down 22 cents to $63.94 and Manulife Financial rose 36 cents to $18.45.
The gold sector fell while Iamgold Corp. faded 10 cents to $5.20.
Barrick Gold Corp. posted a $8.56-billion U.S. loss and lowered its quarterly dividend in the wake of lower prices for bullion and copper.
Excluding unusual items, Barrick had adjusted earnings of $663 million U.S. or 66 cents in the quarter ended June 30 -- better than the analyst estimate but down from 82 cents per share last year and its shares took on 46 cents to $17.46.
Kinross Gold Corp. reported a net loss of $3.2 billion for its latest quarter, as it was also hit with a substantial impairment charge related to lower gold price assumptions and suspended its dividend. Adjusted earnings fell to 10 cents a share, beating analyst expectations of seven cents a share. Its shares started off higher but by mid-morning they were off six cents to $5.28.
China's official purchasing managers’ index hit 50.3 last month. That is up only slightly from June's 50.1 reading but economists had expected a modest decline to below 50, the level which divides contraction and expansion.
However, analysts note that the index has held between 49 and 51 for the past 15 months.
In economic news, the July RBC Canadian Manufacturing PMI of 52.0 indicated business conditions continued to improve with the measure remaining above the 50 “no-change” level. However, this did represent a slight moderation in the pace of improvement given readings in June and May of 52.4 and 53.2, respectively.
ON BAYSTREET
The TSX Venture Exchange added 3.68 points to 921.02
All but four of the 14 Toronto subgroups were higher on the day. Health-care led the way, gaining 3.2%, energy charged ahead 2.3%, and global base metals triumphed 1.8%.
The four laggards were weighed mostly by gold, off 2%, while real-estate subsided 0.9%, and utilities surrendered 0.7%.
ON WALLSTREET
The S&P 500 climbed 1.3% and closed above 1,700 for the first time ever, while the Dow Jones industrial average advanced 0.8% to a record high.
The Dow Jones hiked 128.48 points to 15,628.
The S&P 500 index spiked 21.14 points to 1,706.87, its first appearance ever above the 1,700 mark. The NASDAQ grew 49.37 points to 3,675.74, to end at its highest level in almost 13 years.
Major automakers released their monthly sales results Thursday. General Motors, Ford, Chrysler Group and Toyota, the nation's four largest automakers, had their best July since before the 2007 recession.
Procter & Gamble reported better-than-expected earnings and sales for its fiscal fourth quarter.
Exxon Mobil reported quarterly earnings that fell short of forecasts, citing weaker refining margins, while revenue topped estimates.
Royal Dutch Shell shares dropped after the company reported earnings and revenue that missed estimates. The company cited higher costs, exploration charges and challenges in Nigeria, where oil thefts and supply disruptions have hit Shell's bottom line.
Shares of DirecTV fell after the satellite television provider posted earnings that widely missed forecasts. LinkedIn is due after the close.
Yelp shares jumped more than 20% after the online review site reported a smaller-than-expected quarterly loss late Wednesday.
Sony shares rose after the company reported first-quarter results showing a 13% jump in sales compared with the same quarter a year earlier. The revenue boost was largely the result of a weaker yen and stronger smartphone sales.
Shares of J C Penney slipped again following a 10% selloff Wednesday. The retailer issued a statement early Thursday disputing reports that CIT had cut off some of the credit to its suppliers due to concerns about Penney's ability to pay them. However, an analyst for Citigroup cut her recommendation on the stock to a sell from neutral.
Meanwhile, shares of Sprout Farmers Market more than doubled from their IPO price on their first day of trading.
Economically speaking, the U.S. Labor Department reported that the number of Americans filing first-time claims for unemployment benefits fell to a five-year low. That's good news ahead of the government's monthly jobs report on Friday.
The Institute for Supply Management also delivered positive news Thursday. The group's monthly manufacturing sentiment index rose to 55.4, the highest level in two years. Any number above 50 signals growth.
Investors were also calmed by indications that the U.S. Federal Reserve will not be too hasty when scaling down its massive bond-buying program.
Prices for the 10-year U.S. Treasury dipped, raising yields to 2.72% from Wednesday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices acquired $2.68 to $107.71 U.S. a barrel.
Gold prices dropped $1.90 to $1,311.10 U.S. an ounce.
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