Resource stocks gave the Toronto stock market a solid advance Thursday as a weaker U.S. dollar helped send prices for oil and metals higher.
The S&P/TSX composite index closed Thursday up 78.35 points to 15,229.85, with gains limited by earnings misses from big Canadian insurers and a major corporate shakeup at transportation giant Bombardier Inc.
The Canadian dollar jumped 0.83 cents to 80.02 cents U.S.
The index has been having big swings in sentiment but is up about 3.3% so far this year.
Bombardier shares tumbled 35 cents, or 11.5%, to $2.69 after the Canadian corporate giant suspended its dividend and announced plans to raise up to $2.5 billion. Bombardier has faced a string of delays related to its new CSeries jetliner and cost estimates keep climbing.
Manulife's core earnings were 36 cents per diluted share, five cents below estimates. It also said that macroeconomic factors including low interest rates "produces headwinds in 2015."
Sun Life's net income on an adjusted basis came in at $360 million or 59 cents per share, missing estimates of 78 cents per share.
Manulife fell 51 cents to $21.33 while Sun Life lost $2.73, or 6.5%, to $39.23.
The TSX energy sector was ahead. Cenovus Energy expects to cut its workforce by about 15%, with the bulk of the cuts coming from its contractors. Its shares dipped five cents to $24.63.
Oil companies have scrambled to cut costs as prices have slid about 40% since late November amid a huge supply/demand imbalance.
The base metals sector ran up as April copper gained six cents to $2.60 U.S. a pound. Teck Resources shot up $1.12, or 6.4%, to $18.73.
The telco sector fell even as Telus Corp. increased its fourth-quarter profit 7.6% from a year ago to $312 million, helped by growth in its wireless business. Adjusted earnings were 53 cents, in line with estimates, but its shares fell a penny to $43.53.
The gold sector gathered steam as Goldcorp gained 24 cents to $29.12
Statistics Canada reported its new housing price index for December posted a fourth consecutive 0.1% increase. Gains in Ontario and Alberta were moderated by a decline in Quebec.
ON BAYSTREET
The TSX Venture Exchange added 2.22 points to 692.44
All but three of the 14 Toronto subgroups were higher by day’s end, most notably metals and mining, soaring 4.2%, global base metals, up 2%, and energy, 1.4% to the good.
The three laggards were telecoms and utilities, each off 0.3%, while information technology, sliding 0.1%.
ON WALLSTREET
U.S. stocks closed sharply higher on Thursday as investors cheered a ceasefire agreement between Russia and Ukraine, amid firming oil prices and strong earnings reports.
The Dow Jones Industrials soared 110.24 points to 17,972.38, with Cisco gaining more than 9% on better-than-expected earnings to lead gains.
The S&P 500 stayed positive 19.95 points to 2,088.48, and is now up more than 1% for 2015.
The NASDAQ index was better by 56.43 points to 4,857.61, after opening at its highest level since March 2000, the peak of the dotcom bubble. Apple continued to trade at all-time highs.
Breakfast cereal giant Kellogg reported lower-than-expected quarterly sales as weak demand in Europe and Asia Pacific overshadowed a revival in U.S. sales.
Online travel agency Expedia said early Thursday it would buy rival Orbitz Worldwide at $12 U.S. a share for total of about $1.33 billion U.S., as it looks to increase its customers base in a highly competitive industry.
Time gave a downbeat sales outlook for 2015, on weaker circulation. Time, which publishes magazines like People and Sports Illustrated, sees a 3-6% drop in revenue this year, more than the consensus forecast for a two percent decline. Time earned an adjusted 73 cents U.S. per share for its latest quarter, five cents below estimates.
Avon Products earned an adjusted 20 cents U.S. per share for its latest quarter, missing estimates by five cents U.S., and revenue was also below analyst projections. Currency fluctuations had a significant impact on Avon's results, and the company said that will continue to be the case this year as it does most of its business outside the U.S.
McGraw-Hill Financial, the parent of Standard and Poor's, earned 95 cents U.S. per share for its latest quarter, a five-cent beat, while revenue was above estimates as well.
In other corporate news, Tesla unexpectedly reported a quarterly loss after the bell on Wednesday, but shares rose in after-hours trade on better-than-expected shipments.
Among the few remaining companies yet to post earnings, AIG, Kraft Foods and Groupon report after the bell.
In the economic docket, retail sales for January came in weaker than expected, down 0.8% and near December's 0.9% decline. Retail sales ex-autos declined 0.9%, though when excluding vehicles, gasoline and building materials, sales posted a moderate increase to 0.1% last month after a revised 0.3% drop in December.
Jobless claims totaled 304,000 last week, more than expected and an increase of 25,000 from last week.
Business inventories increased 0.1% in December, below estimates of a 0.2% increase. Sales decreased 0.9%.
The announcement of a deal between Russia and Ukraine came in early Thursday morning and sent futures higher.
Greece was unable to reach a deal with the European Union to stay in an EU bailout program, the Eurogroup's Jeroen Dijsselbloem said on Wednesday, noting talks will continue on Monday.
Prices for 10-year U.S. Treasuries dropped slightly, raising yields back to Wednesday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil prices shot higher $2.43 per barrel to $51.26 U.S.
Gold prices added $2.40 an ounce to $1,222.00 U.S.
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