Stocks in Toronto were sharply higher on Thursday, propelled by a strong rebound in the energy sector, following yesterday’s just-as-steep drop following the shooting on Parliament Hill.
The S&P/TSX composite index gained 174.76 points, or 1.2%, to close Thursday at 14,486.83
The Canadian dollar eased 0.01 cents at 89.02 cents U.S.
Energy stocks, which sold off on tumbling oil prices on Wednesday, were up, and the index's top four heavyweight gainers were all oil and gas shares. Oil prices rose on stronger economic data from Europe and China.
Cenovus Energy Inc, Canada's number-two independent oil producer, jumped 6.5% to $27.97 after its quarterly results beat expectations. Canadian Natural Resources rose 2.8% to $39.55.
Among industrials, Canadian National Railway climbed 2% to $76.71. Canadian Pacific, the number-two railway, was up 3.5% at $229.00.
Another strong subgroup was consumer staples, with Alimentation Couche-Tard gathering 2.1% to $36.60.
One experts said the slew of negative news on Wednesday provided an opening for those looking to sell, and that moves on negative news are likely be greater than reactions to positive news in the current market environment. Market fundamentals, however, are still positive, he said, with the economy generally headed in the right direction.
Prime Minister Stephen Harper vowed to redouble the country's fight against "terrorist organizations" abroad after a reported convert to Islam rampaged through parliament, shocking the usually tranquil capital city of Ottawa.
On the economic beat, Statistics Canada reported that the number of regular Employment Insurance recipients in August was essentially unchanged, at 498,100. Compared with 12 months earlier, the number of beneficiaries fell by 18,800 or 3.6%.
ON BAYSTREET
The TSX Venture Exchange gained 0.60 points to 808.60.
All 14 Toronto subgroups were higher, with energy and industrials co-leading the way, each up 2.2%, while consumer staples were ahead 1.2%.
ON WALLSTREET
U.S. stocks soared on Thursday in a broad rally, as strong results from industrial bellwethers reassured investors that corporations continue to fare well despite concerns about global economic growth.
The Dow Jones Industrials leaped 216.58 points, or 1.3%, to 16,677.90
The S&P 500 gained 23.71 points to 1,950.82. The NASDAQ index hiked 69.94 points to 4,452.79.
Shares of both Caterpillar Inc and 3M Co rose following their results. Caterpillar, which also raised its full-year profit view, was up 4.6% at $98.94 U.S. while 3M added 5% to $145.85 U.S.
On the downside, AT&T Inc fell 2.7% to $33.58 U.S., a day after reporting weaker-than-expected revenue growth. The results pressured the telecom sector
Yelp Inc slumped 16.2% to $58.83 U.S. in heavy trading a day after giving a revenue outlook that was below expectations. Many analysts cut their price targets on the stock.
This season has largely been positive for companies. With 35% of the S&P 500 having reported, 69.5% have exceeded profit expectations, according to Thomson Reuters data, above the long-term average of 63%.
Economically speaking, the number of people who applied for U.S. unemployment benefits rose by 17,000 last week to 283,000. Economists had expected claims to rise to a seasonally-adjusted 285,000 in the week ended Oct. 18.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.28% from Wednesday’s 2.23%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.55 to $82.07 U.S. a barrel.
Gold prices slipped $13.80 to $1,231.70 U.S. an ounce.
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