Stock markets in Toronto reached their highest points in a week on Thursday as gains in Toronto Dominion Bank and Canadian Imperial Bank of Commerce, following quarterly reports from the two lenders, overcame weakness in the energy sector.
The S&P/TSX composite index hiked 51.86 points to greet noon at 15,280.43
The Canadian dollar faded 0.31 cents to 80.08 cents U.S.
CIBC reported better-than-expected first-quarter earnings, helped by strong growth in its wholesale banking business, and unexpectedly raised its dividend. The stock jumped 4.2% to $96.07.
Boosted by the gains in TD and CIBC, the financial sector climbed. Bank of Nova Scotia, which is expected to report results next week, rose 2.2% to $67.26.
Shares of energy producers slipped, reflecting a sizable drop in the price of U.S. crude oil. Canadian Natural Resources Ltd lost 1.3% to $37.12, and Suncor Energy gave back 0.9% to $38.02.
Shares in base metals stocks led the way Thursday, as Capstone Mining vaulted 10 cents, or 7.4%, to $1.45.
Economically speaking, Statistics Canada reported this morning that consumer prices rose 1.0% in the 12 months to January, following a 1.5% increase in December. On a seasonally-adjusted monthly basis, the Consumer Price Index declined 0.2% in January, matching the decrease in December.
ON BAYSTREET
The TSX Venture Exchange gained 3.72 points to 703.21
All but three of the 14 Toronto subgroups were positive, as metals and mining shares hiked 2.4%, gold shone 2.1% brighter, and information technology was stronger by 2%.
The lone holdouts were in energy, off 1.6%, health-care, dipping 0.2%, and utilities, shedding 0.1%.
ON WALLSTREET
U.S. stocks traded in a narrow range on Thursday, with only the NASDAQ holding higher, as investors digested mixed economic data and declines in oil.
The Dow Jones Industrials retreated 21.37 points to 18,203.20, led by Cisco, Johnson & Johnson and McDonald's. Exxon Mobil, Chevron and Caterpillar each fell more than 1% as the greatest blue-chip laggards.
The S&P 500 settled 3.31 points to 2,110.55. Energy also fell more than 1% as the greatest decliner in the S&P 500.
The NASDAQ index rebounded 8.97 points to 4,971.11
Avago Technologies, VimpelCom and Facebook were among the leaders while Apple traded below its recent highs.
In corporate earnings news, Sears reported an adjusted quarterly loss of $1.37 U.S. per share, smaller than the $1.89 consensus estimates. Revenue was below consensus, and same-store sales at both Sears and Kmart fell. Sears also said it expects to complete its previously announced spinoff of 200 to 300 stores into a REIT by May or June, which should bring in more than $2 billion U.S.
Kohl's posted quarterly profit of $1.83 U.S. per share, three cents above estimates, with revenue very slightly above forecasts. Kohl's also increased its dividend by 15% to 45 cents U.S. per share from the prior 39 cents.
He noted that same-store sales have increased for several retailers in that category, including Kohl's.
The Victoria's Secret parent L Brands reported quarterly profit of $1.89 U.S. per share, nine cents above estimates, while revenue was also above forecasts. However, its current quarter and full-year outlook are below analyst forecasts.
An expanded partnership agreement between Dunkin' Brands, JM Smucker, Keurig Green Mountain will mean Dunkin's K-Cup coffee packs will now be sold online and in stores. Previously, they had only been available in Dunkin' Donuts locations.
Autodesk, Gap, Herbalife, JC Penney, Weight Watchers and Splunk are due to report after the bell.
The core Consumer Price Index, the key figure for the Fed that excludes more volatile food and energy prices, gained 0.2%. However, CPI data for January was down more than expected at 0.7%.
Expectations were for a further sharp drop of 0.6% month on month, the biggest fall since 2008, driven by energy prices to leave the year-on-year rate in negative territory.
Elsewhere on the economic calendar, durable goods orders figures for January increased a more-than-expected 2.8%, after a 3.4% decline in the prior month.
Initial claims for unemployment for the week of Feb. 15, came in at 313,000. Analysts had expected the figure to increase moderately to 285,000 from 283,000 the week prior.
Prices for 10-year U.S. Treasuries were down slightly, raising yields to 1.98% from Wednesday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.73 per barrel to $49.26 U.S.
Gold prices gained $8.60 an ounce to $1,210.10 U.S.
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