Stocks on Bay Street jumped on Thursday -- led by a rise in gold stocks -- as investors brushed of volatile commodities prices and discouraging unemployment numbers out of the US.
The S&P/TSX composite index was up 430.21 points at 8,352.78.
In Canadian corporate news, Nortel Networks Corp. will have to rely on asset sales to fund its battered operations, and risks running out of money and collapsing under its debt load before 2011, an analyst warned on Thursday.
Toy maker Mega Brands Inc. reported a third-quarter net loss of US$122.1 million, pulled down by a $150-million writedown of goodwill. Sales fell 12.6 percent to $160.9 million.
Lundin Mining Corp. is suspending zinc production at two Portuguese mines in response to plunging base-metal prices..
Pan American Silver Corp. shares were down 48 cents to $11.76 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 percent and reducing exploration and capital spending. The moves are intended to deal with lower profits and revenues and a drop in prices of silver and zinc, its key metals.
Flight training and simulator firm CAE Inc. said second-quarter profit climbed to $48.7 million from year-earlier $38.9 million, while revenue improved to $406.7 million.
Looking at economic data, the Department of Labor reported that US jobless claims for the week ended Nov. 8 came it at 516,000, above economists' estimates of 479,000 and breaking above 500,000 for the first time since 2001. The jobless figure from the previous week was also revised to 484,000 from 481,000.
Also -- the Census Bureau announced that the September trade balance registered a deficit of $56.5 billion, below analysts' forecast of $57 billion and down from a $59.1 billion deficit in August.
The Canadian dollar, meanwhile, was trading at 82.40 cents US, up 1.58 of a cent.
BAYSTREET
All of the TSX sub-groups traded higher today -- gold stocks were ahead 12.37 percent followed by a 9.87 percent gain in mining issues and a 6.97 percent gain in energy stocks.
Gold shed $13.30 to settle at $705 US an ounce.
Meanwhile, the TSX Venture Exchange moved down 8.91 points to 813.59 and NASDAQ Canada stocks rose 10.39 points to 445.79.
ON WALLSTREET
U.S. stocks rallied Thursday afternoon after a series of rises and dips, as the market -- down for three straight days -- tried to absorb rising unemployment claims and reduced outlooks from Intel Corp. and Wal-Mart Stores Inc.
The Dow Jones Industrial Average, which earlier in the day lost 313 points to sink below 8000, rocketed 552.59 points, or 6.7 percent, to end the volatile day at 8835.25. The S&P 500 soared 58.99 points, or 6.9 percent, to 911.29, and the Nasdaq surged 97.49 points, or 6.5 percent, to 1596.70.
Dow component Wal-Mart Stores rose 2.9 percent after the retailing giant reported a better-than-forecast 10 percent profit rise in the third quarter but lowered its 2008 earnings view.
As for the automotive sector, Bloomberg reported that beleaguered General Motors was hitting a snag in its efforts to sell $4 billion in assets to raise its cash levels. Several lawmakers have begun discussing whether GM, along with Ford and Chrysler, needs a government bailout.
Intel warned late Wednesday that its already sluggish fourth-quarter sales forecast won't hold up, with sales now expected to be even lower as chip demand continues to erode. Intel shares gained 6.7 percent to $14.43.
Longer-dated U.S. Treasury securities were falling in price. The 10-year note was down 1-1/32, yielding 3.86 percent, and the 30-year was losing 3 points to yield 4.35 percent. The American dollar was strengthening vs. the yen, but softening against the euro and pound.
Crude oil added $2.09 to close at $58.24 US a barrel.
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