Toronto stocks gained strength in the early going Thursday, as data that showed activity across China's vast factory sector reached a seven-month high eased concerns of a slowdown in the world's second largest economy.
The S&P/TSX composite index gained 40.83 points to start Thursday at 13,284.15
The Canadian dollar dumped 0.33 cents to 95.96 cents U.S.
Potash Corp of Saskatchewan reduced its outlook for full-year earnings more than Wall Street expected, as buyers backed away from the key fertilizer ingredient potash due to uncertainty caused by the breakup of rival Belarusian Potash Co. Potash shares slid $1.20, or 3.6%, to $31.73.
Husky Energy Inc reported a 3% fall in quarterly profit as its refining business was hurt by a sharp drop in market crack spreads, or the price difference between crude oil and the refined product. Husky shares gave back nine cents to $29.11.
Rogers Communications Inc reported a third-quarter profit that topped expectations, on the back of strong results from its cable and wireless business. Rogers shares dropped 98 cents to $46.10.
Teck Resources Ltd reported a 41% drop in quarterly adjusted profit as higher coal sales volumes failed to offset weaker prices. Teck shares hiked $1.74, or 5.9%, in the first hour to $31.15.
Corus Entertainment's profit nearly halved as a rise in specialty advertisement revenue failed to offset weakness in its radio division. Corus shares faded 11 cents to $24.64.
Agnico Eagle Mines reported on Wednesday a 56% decline in third-quarter profit due to lower realized metal prices as well as a maintenance shutdown at its Kittila mine in Finland and raised its full-year production forecast. Agnico shares soared $4.06, or 15.1%, to $30.91.
The Globe and Mail reported on Wednesday that former Apple Inc Chief Executive John Sculley is exploring a joint bid for BlackBerry with Canadian partners. BlackBerry shares nicked ahead 11 cents to $8.55.
Cenovus Energy reported a 28% rise in third-quarter profit, driven by higher oil prices and increased volumes. Cenovus shares gathered 11 cents to $30.80.
MEG Energy Corp. said its third-quarter profit more than doubled, driven by a rise in output, lower operating costs and stronger price realizations. MEG shares took on 83 cents, or 2.4%, to $35.00.
Telus said on Wednesday it has agreed to buy 100% of struggling startup Public Mobile from private equity firm Cartesian Capital and Thomvest Seed Capital, a Toronto-based investment vehicle backed by Peter Thomson. Telus shares faded 22 cents to $36.25.
ON BAYSTREET
The TSX Venture Exchange regained 3.92 points to 970.79
Eight of the 14 Toronto subgroups were higher at the outset, with gold leading the pack at 3.2%, while metals and mining gained 2%, and materials took on 1.6%.
Telecoms weighed down the six laggards most, settling 0.9%, utilities, off 0.3%, and consumer discretionaries, sliding 0.2%.
ON WALLSTREET
Encouraging data from China and a batch of strong earnings brightened the mood on Wall Street Thursday.
The Dow Jones Industrials sprang back to life, gaining 68.39 points to 15,481.70
The S&P 500 index nicked ahead 1.07 points to 1,747.45. The NASDAQ took on 10.25 points to 3,917.32
Dow components 3M and AT&T reported better-than-expected earnings. But shares of Ma Bell were down 2% while 3M rose slightly.
Ford shares rallied after the automaker raised guidance and released quarterly earnings and revenue that topped forecasts.
Rival GM rose on the news as well.
PulteGroup shares were also on the rise after the homebuilder's earnings and revenue topped forecasts.
Southwest Airlines gained ground after the discount airline reported solid earnings thanks to higher airfares and declining fuel costs. Southwest was optimistic about the current quarter, highlighting that bookings for November and December are strong.
On the downside, shares of Symantec got hammered after the company reported earnings and sales that fell short of estimates, and slashed its guidance.
Dow Chemical shares were also under pressure after the company's earnings fell short.
Microsoft, Zynga and Amazon are due to report results in the afternoon.
Meanwhile, shares of Apple were relatively flat despite the news that activist investor Carl Icahn sent a letter to CEO Tim Cook reiterating his push for a big share buyback.
Manufacturing is improving in the world's second largest economy. Chinese factory activity hit a seven-month high in October. The positive data follows last week's upbeat report that showed China's economy great 7.8% during the third quarter.
Prices for the 10-year U.S. Treasury fell a bit, raising yields to 2.50% from Wednesday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices sank 67 cents to $96.19 U.S. a barrel.
Gold prices acquired $8.90 to $1,342.90 U.S. an ounce.
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