The Toronto stock market was higher Thursday amid a fresh round of speculation that the Federal Reserve may start cutting back on its monetary stimulus early in the New Year
The S&P/TSX composite index rocketed 48.85 points to greet noon at 13,478.86
The Canadian dollar doffed 0.58 cents to 95.14 cents U.S., after Bank of Canada Governor Stephen Poloz said he disagreed with an assessment Tuesday by the Organization for Economic Cooperation and Development that the central bank would have to start raising interest rates by the end of next year.
But Poloz told the Senate standing committee on banking, trade and commerce that the central bank's thinking on the issue is based on its own view of slack in the Canadian economy and the fact that inflation, at 1.1%, is currently well below where he would like it to be.
Telecoms led TSX advancers, with Rogers Communications ahead 47 cents to $47.18.
Industrials were ahead with Canadian Pacific Railway ahead $1.26 to $155.09.
The energy sector gained 0.3%. Cenovus Energy gained 39 cents to $31.09.
Barrick Gold slipped 48 cents to $17.46.
The base metals sector was down with December copper unchanged at $3.16 U.S. a pound. Turquoise Hill Resources shed five cents to $4.62.
Clothing maker Gildan Activewear Inc. fell $1.38 to $49.92. The company, which reports in U.S. currency, estimated it will have between $3 and $3.10 per share of adjusted earnings and $2.35 billion of revenue for the year ending next September. Analysts had been expecting 2014 adjusted earnings would climb to $3.14 per share with $2.38 billion of revenue.
Gildan also issued fourth-quarter results and announced a dividend increase. Its fourth-quarter adjusted earnings came in at 83 cents a share, which was in line with analyst estimates. Net sales were up about 11% to $628.1 million dollars, beating revenue estimates of $603.9 million. Gildan says it will boost its quarterly dividend by 20% to 10.8 cents.
On the economic slate, Statistics Canada declared that Canadians drawing employment insurance in September dipped by 7,100, or 1.4%, to 503,800.
Compared with September 2012, the number of beneficiaries was down 8.8%.
ON BAYSTREET
The TSX Venture Exchange stayed positive 5.55 points to 920.57
All but two of the 14 TSX subgroups were higher by midday, led by energy, gushing 1%, while information technology and telecoms each clicked 0.7% higher.
The two laggards were gold, off 1.1%, and materials, sliding 0.6%.
ON WALLSTREET
Stocks were higher Thursday, following three straight days in the red for the S&P 500 and NASDAQ.
The Dow Jones Industrials gained 93.22 points, to pause for noon hour at 15,994.
The S&P 500 index hiked 10.48 points to 1,791.85. The NASDAQ sprang up 36.46 points to 3,957.73.
Target shares slumped after the discount retailer reported lower-than-expected comparable same-store sales for the third quarter. Target blamed "an environment where consumer spending remains constrained" for the weakness, a troubling sign ahead of the key holiday shopping period. Target also trimmed its profit forecast for the year.
Dollar Tree shares also took a tumble after the discount retailer's earnings missed expectations. The company also lowered its guidance for the year.
Abercrombie & Fitch posted a quarterly loss and CEO Mike Jeffries said he expects weakness in revenue to continue into the fourth quarter. And Sears Holdings reported a deepening loss on poor sales. But both of those stocks were higher in late morning trading despite dropping at the open.
Still, there was some good corporate news. Shares of Green Mountain Coffee Roasters soared following quarterly earnings that beat market expectations. The company also boosted its stock buyback and announced that it will begin to pay a dividend.
Meanwhile, the Senate Banking Committee approved Janet Yellen's nomination to become the first woman to lead the Federal Reserve Thursday morning. Yellen is the current vice chair of the Fed, has been nominated to chair the Fed after Ben Bernanke's term ends in early 2014. Her nomination now moves to the full Senate for a vote.
Prices for 10-year U.S. Treasuries moved lower, raising yields to 2.82% from Wednesday’s 2.79%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.44 at $95.29 U.S. a barrel.
Gold prices slumped $16.60 to $1,241.40 U.S. an ounce.
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