Blue chips in Toronto traded higher on Thursday -- with the S&P/TSX composite index up 94.47 points to 9,331.47 -- following two days of steep losses -- as late day buying pushed stocks back into positive ground -- led by a jump in energy stocks amid higher oil prices and better-than-expected quarterly results.
Positive earnings news helped support the TSX as Potash Corp. of Saskatchewan reported a profit of $1.24 billion in the July-September period -- more than in all of 2007, which was its best full year to date.
EnCana Corp. rose after third-quarter net earnings of US$3.55 billion, up from $934 million a year ago. But that was largely thanks to a $2-billion unrealized hedging gain caused by declining natural gas prices.
Petro-Canada moved ahead as it reported a third-quarter profit of $1.25 billion, up 61 percent from a year ago.
Precision Drilling Trust earned $82 million in the third quarter, up by $10 million or 13 percent from a year ago. Revenue for the three months ended Sept. 30 was $285.6 million, up from $227.9 million.
On the data front -- the Department of Labor's jobless numbers for the week ended Oct. 18 unexpectedly rose by 15,000 to 478,000. Economists were expecting 468,000 unemployment claims for the week.
In addition, home foreclosures in hte US were up 71 percent year over year to 766,000 for the third quarter as home prices declined, according to RealtyTrac.
The Canadian dollar, meanwhile, was up 0.30 cent to 79.89 cents US after falling 2.69 cents Wednesday to a three-year low.
BAYSTREET
Seven of the TSX sub-groups traded higher today -- energy stocks were ahead 3.49 percent followed by a 1.95 percent rise in consumer staples issues and a 1.87 percent gain in financial stocks.
Gold futures fell, continuing a decline that on Wednesday had the precious metal sinking below $710 an ounce for the first time in more than a year. COMEX gold for December delivery fell $20.50 to settle at $714.70 US an ounce.
On the downside -- mining issues fell 6.02 percent; gold stocks dipped 4.06 percent and tech issues shed 3.30 percent.
Meanwhile, the TSX Venture Exchange was down 42.63 points to 858 while NASDAQ Canada stocks were off 22.98 points at 562.48.
ON WALLSTREET
U.S. stocks on Thursday pared losses in the last hour of trading to end mostly higher after another wild day in which a late-rally in utilities and energy shares overtook a slide among financials.
The Dow Jones Industrial Average, which traded down 275 points at one point in the session, closed up 172 points at 8691. The S&P 500 edged up 11 points to 908, but the Nasdaq couldn't shake the negativity and ended down 11 points at 1603.
On a positive note -- Microsoft announced Thursday that revenue and profits rose in its fiscal first quarter thanks to strong sales in its server and business software segments. Looking ahead, Microsoft said that sales and earnings for the second quarter and full year would be slightly lower than consensus estimates due to the economic slowdown.
In the financial sector -- Goldman Sachs is planning on cutting its workforce by 10 percent as it copes with the credit crunch.
General Motors announced it would also be reducing its headcount and temporarily cutting employee benefits in an effort to cut costs. Fellow automaker Chrysler said it would close a plant in Newark, Del., and eliminate a shift at a plant in Ohio as it sheds 1,800 workers.
JetBlue announced a third-quarter loss of $4 million, or 2 cents per share, but still managed to beat analyst expectations. AirTran Holdings also reported a loss, of $107 million, or 91 cents per share, which it blamed on fuel costs.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was up 14/32 to yield 3.54 percent, and the 30-year was up 1-16/32, yielding 3.97 percent. The American dollar was gaining on the pound and euro but softening vs. the yen.
After tumbling to 16-month lows Wednesday, benchmark crude-oil futures closed at $67.84 US a barrel, up $1.09, or 1.6 percent, for the session.
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