Stocks in Toronto staged a massive comeback from a 100-point drop Wednesday, as traders got some reassurance about the pace of interest rate hikes in the U.S.
The S&P/TSX composite index rallied 90.02 points, to end Wednesday at 14,666.47
The Canadian dollar regained 0.54 cents at 90.05 cents U.S.
On the TSX, the energy sector fell as market sentiment continued to feel the weight of a double-dose of weak economic signals from Tuesday. Imperial Oil dipped 19 cents to $51.40, while Canadian Natural Resources subsided 24 cents to $39.76.
In Canada, Jean Coutu Group posted quarterly net income of $53.6 million or 28 cents per share, down from a year earlier when the Quebec-based pharmacy chain reported a $158.3-million gain from the sale of some of its stake in Rite-Aid, a U.S.-based company that Jean Coutu had been divesting in stages.
Excluding the Rite-Aid gain, Jean Coutu's net income for the quarter was up from $49.9 million or 24 cents a year earlier. Revenue was up 3.15% to $674.4 million and its shares climbed 30 cents to $24.71. Coutu shares 58 cents, or 2.4%, to $24.99.
Gold stocks shone brightly as Alamos Gold hiked $1.15, or 13.3%, to $9.79, while Torex Gold leaped 26 cents, or 17.8%, to $1.72.
Metals stocks also proved strong as Turquoise Hill Resources ballooned 20 cents, or 4.9%, to $4.25, while Nevsun Resources gained 14 cents, or 3.7%, to $3.94.
Economically speaking, Canada Mortgage and Housing reported the seasonally adjusted annualized rate of housing starts climbed to 197,343 units last month from an upwardly revised 196,283 units in August, topping analysts' forecasts for 196,100. August was originally reported as 192,368.
ON BAYSTREET
The TSX Venture Exchange faded 6.16 points to 848.67.
All but four of the 14 Toronto subgroups were higher on the day, as gold soared 7.7%, materials grew 4.5%, and metals and mining strode higher 1.3%.
The four laggards were weighed most by energy, down 1%, while utilities and industrials each sagged 0.3%.
ON WALLSTREET
U.S. stocks ended about 2 percent higher on Wednesday as markets extended gains on the FOMC minutes and recovered from Tuesday's selloff.
The Dow Jones Industrials spiked 274.83 points, or 1.6%, to 16,994.22, after Tuesday’s 200-point-plus dive, and enjoying its best day since last December 18.
The S&P 500 leaped 33.79 points to 1,968.89. The NASDAQ index shot higher 83.39 points, or 1.9%, to 4,468.59. The S&P 500 and the NASDAQ had their best day since nearly a year ago on October 10, 2013.
Alcoa posts quarterly results after the bell, kicking off a slew of company earnings and guidance reports expected in the next few weeks.
In corporate news, Costco earnings beat expectations on Wednesday, and investors are focusing on guidance during the upcoming earnings season.
In the morning, J.C. Penney fell more than 5% on its long-term financial outlook. Earlier, the stock was briefly halted due to a volatility circuit breaker.
Sears also plunged, losing more than 14%, on reports that three insurance firms for its suppliers were reducing or cutting coverage.
Apple gained on the official announcement of a 'special event' on October 16.
The iPhone maker also said it was surprised at the bankruptcy filing of its sapphire display supplier, GT Advanced Technologies. Activist investorCarl Icahn also promised to send an open letter to CEO Tim Cook on Thursday.
Stocks had traded flat to modestly higher before surging on the release of the Fed minutes in the early afternoon. The report showed that the U.S. Federal Reserve staff cut their growth outlook due to the higher dollar, as a number of committee participants had concerns with global weakness.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.33% from Tuesday’s 2.35%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.06 to $87.79 U.S. a barrel.
Gold prices recovered $9.50 to $1,223.90 U.S. an ounce.
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