TSX stocks shot higher in volitile trading Thursday -- as buyers once again turned out on Bay Street to snap up beaten down shares -- advances were led by mining stocks while a better than forecast report on the US economy also fueled buying.
The S&P/TSX composite index was up 318.76 points to 9,820.23.
Ahead of Wall/Bay Street's start, the Commerce Department estimated the U.S. economy contracted the most since the end of the last recession in late 2001, but the 0.3 percent decline in real gross domestic product was less than the expected 0.5 percent decline.
In other government data -- US jobless claims held steady in the latest week after a jump in the previous period, the government reported Thursday. New applications for state unemployment benefits were unchanged at 479,000 in the week ended Oct. 25.
In Canada -- sharp declines in petroleum prices and mineral fuels contributed to month-over-month weakening in prices for industrial products and raw materials in September, Statistics Canada reported Thursday. The statistical agency's Industrial Product Prices Index fell 1.2 percent, while the Raw Material Price Index declined 7.2 percent.
On the earnings front -- Barrick Gold Corp. was ahead 1.98 cents to $29.88 after reporting third-quarter net income of US$254 million, down from $345 million a year earlier. The Toronto-headquartered global gold giant said that excluding $97 million in one-time charges it earned $351 million or 40 cents per share, a nickel short of analyst expectations.
Sprott Inc. booked third-quarter earnings of $3.7 million, up from $3.5 million a year earlier, despite financial-market turmoil that cut its assets under management by 27 percent to $5.6 billion during the quarter.
TransForce Inc. turned in a 23 percent rise in third-quarter revenue at $595.5 million and increased its pre-tax profit by 31 percent to $38.4 million despite ''weak'' trucking and logistics industry conditions. But its net income was cut by heavy tax provisions following its conversion from an income trust.
Canaccord Capital Inc. dropped 12 cents to $5.73 after it disclosed it is laying off about 10 percent of its staff –- roughly 170 people –- and cutting executive salaries by 10 to 20 percent.
The Canadian dollar, meanwhile, was trading up 0.45 cents US to 82.26 cents US after surging 3.67 cents yesterday.
BAYSTREET
All of the TSX sub-groups traded higher today -- mining issues rose 5.33 percent followed by a 4.27 percent gain in gold issues and a 4.25 percent rise in energy stocks.
COMEX gold for December delivery fell $15.50 to settle at $738.50 US an ounce.
Meanwhile, the TSX Venture Exchange moved up 21.43 points to 879.75 while NASDAQ Canada stocks were off 0.05 points at 477.14.
ON WALLSTREET
U.S. stocks rallied Thursday, pushing the Dow Jones Industrial Average back above the 9,000 level, after the government said the economy shrank less than forecast in the third quarter.
The Dow Jones Industrial Average climbed 189.73 points, or 2.1 percent, to 9,180.69, and the S&P 500 added 24 points, or 2.6 percent, to 954.09. The Nasdaq jumped 41.31 points, or 2.5 percent, to 1,698.52.
All but five of the blue-chip index's 30 components ended in the green, led by Intel Corp., up 8.2 percent, and Walt Disney Co., ahead 5.7 percent.
American Express Co. also bolstered the Dow industrials, its shares rising 3.4 percent after the financial-services company said it would slash 10 percent of its workforce.
Oil giant Exxon Mobil Corp., another Dow component, edged 0.5 percent up after it reported nearly $15 million in profit for the third quarter in what is a likely swan song for groundbreaking profit tied to this past summer's triple-digit prices for crude oil.
The Wall Street Journal reported on its Web site that Motorola would lay off 3,000 workers, with two-thirds of the cuts coming from the cell phone division. The report emerged after Motorola swung to a third-quarter loss and offered lower guidance for the year.
Longer-dated U.S. Treasury securities were falling in price. The 10-year note was down 20/32 to yield 3.93 percent, and the 30-year was declining 18/32, yielding 4.27 percent. The American dollar was rising vs. the yen, but falling against the euro and pound.
U.S. light crude oil for December delivery fell $1.54 to $65.96 US a barrel on the New York Mercantile Exchange.
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