Toronto stock markets enjoyed a higher open on Thursday on Janet Yellen's dovish comments that supported the U.S. Federal Reserve's quantitative easing policy, ahead of a crucial nomination hearing later in the day.
The S&P/TSX composite index gathered 47.12 points to kick off Thursday’s session at 13,417.78
The Canadian dollar dwindled 0.61 cents to 95.04 cents U.S.
Kinross Gold Corp reported a sharp fall in third-quarter earnings on the back of a lower gold price. Kinross shares grew 16 cents in price to $5.36.
National Bank Financial improved the rating on Ag Growth International to outperform from sector perform, raises target to $40 from $38.50 after the company posted strong third-quarter revenue figures, expects near-term positive U.S. and international demand momentum. Ag shares moved higher 99 cents to $38.74.
NBF raised the target on Computer Modelling Group to $27 from $25 on revised long-term growth assumptions. Modelling shares dipped 31 cents to $27.25.
Canaccord Genuity raised the target on Linamar Corp to $43 from $39 after the company's third-quarter earnings beat expectations. Linamar shares mushroomed $4.52, or 12.7%, to begin the day at $40.19.
In the economic docket, Statistics Canada reported international merchandise exports grew 1.8% during September, while imports edged up 0.2%. As a result, our trade deficit with the world narrowed from $1.1 billion in August to $435 million in September.
The agency’s new housing price index came in unchanged for September, following a 0.1% advance in August.
ON BAYSTREET
The TSX Venture Exchange recovered 1.92 points to 927.80
All but one of the 10 TSX subgroups jumped, on the shoulders of information technology shares, which clicked higher 2.1%, while materials shone 0.8% brighter and consumer discretionary stocks gained 0.5%.
The lone holdout with in consumer staples, which fell 0.6%.
ON WALLSTREET
Stocks were flat in early trading Thursday, as investors wait to hear more from Janet Yellen, President Obama's nominee to be the next chair of the Federal Reserve.
The Dow Jones Industrials started the trading day off 9.39 points to 15,812.20
The S&P 500 index shed 0.90 points to 1,781.10. The NASDAQ surrendered 10.46 points to 3,955.11.
The tech-heavy NASDAQ fell as a sharp drop in Cisco shares weighed on the tech-heavy index.
Cisco shares tumbled more than 13% after the company reported weak sales for the fiscal first quarter and issued a weak outlook for the current quarter, too.
Cisco CEO John Chambers blamed a "hard-to-read" economic environment, adding that the U.S. government shutdown increased the "lack of confidence among business leaders."
Wal-Mart reported better-than-expected earnings, though the retailer missed on revenue and reported a slight decline in same-store sales in the U.S. Shares of department store chain Kohl's plunged following poor results and a weak outlook. The bad news from these two retailers comes one day after Macy's ignited a retail rally thanks to its strong sales and guidance.
Viacom reported a gain in quarterly revenue, driven by sales in media networks and filmed entertainment, and double-digit gains in net earnings.
Yellen -- who would become the new head of the Fed in early 2014 if she's confirmed by the Senate -- appeared before the Senate Banking Committee beginning at 10 a.m. ET.
Her prepared remarks to the committee, released late Wednesday, show that she intends to encourage growth by maintaining accommodative monetary policies.
The comments appear to have convinced investors that Yellen would continue the Fed's current $85-billion-U.S.-per-month bond-buying program for the next few months. The program -- also known as quantitative easing or 'QE' -- has helped spur stocks by pumping markets with extra cash.
Prices for 10-year U.S. Treasuries sagged a bit, raising yields to 2.73% from Wednesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices faded 79 cents to $93.09 U.S. a barrel.
Gold prices hiked $16.50 to $1,284.90 U.S. an ounce.
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