An optimistic take on the European economy and solid earnings news pushed the Toronto stock market higher Thursday.
The S&P/TSX composite index added 20.27 points – off its highs of the day -- to close Thursday at 15,103.11
The Canadian dollar tailed off 0.52 cents to 79.98 cents U.S.
The base mining group advanced, with May copper off a penny at $2.65 U.S. a pound. Teck Resources added 16 cents to $18.79.
The gold sector was up while Goldcorp gained 43 cents to $25.88.
The consumer staples sector was up, although shares in George Weston Ltd. were down 35 cents at $104.61. The food company said adjusted earnings were $212 million or $1.58 per share, up sharply from $135 million or 98 cents in the prior-year period. Revenue of $11.73 billion beat estimates of $11.38 billion.
The energy sector tailed off as energy company Encana announced after the close Wednesday that it is tapping the markets with a share issue of $1.25 billion. The collapse in oil prices -- down 50% from the highs of last summer -- has had a major impact on the cash flows of energy companies. Its shares were 49 cents, or 3.2%, lower at $14.71.
Cenovus Energy Inc. last month announced it was tapping the markets for a $1.5-billion share offering and Stephenson added that other energy companies will likely be raising money through the markets. Cenovus shares docked a nickel to $22.19.
On Thursday, Canadian Natural Resources Ltd. said it almost tripled its profit in the fourth quarter to just under $1.2 billion or $1.09 a diluted share.
Adjusted net earnings were $756 million or 69 cents per share, up from $563 million or 52 cents. The energy company is raising its quarterly dividend by half a cent to 23 cents per share.
Meanwhile, the company also announced a further $150-million cut in capital spending plans for 2015 and said members of its management committee were taking a 10 per cent pay cut. In January, the company had announced a whopping $2.4-billion cut in capital spending to $6.2 billion. Its shares ran up $1.86, or 5.1%, to $38.64.
The Ivey Purchasing Managers Index rolled out of London, Ontario’s Western University, showing a reading last month of 49.7. This compares to 45.4 in January, and 57.2 in February 2014.
The monthly survey of purchasing managers asks whether they increased or decreased purchases, or kept them the same. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange sidled back 1.17 points to 696.92
All but four of the 14 Toronto subgroups were higher, as gold dazzled 0.7%, industrials were stronger by 0.6%, and utilities were better by 0.5%.
The four laggards were weighed by global base metals, down 0.5%, while energy and consumer discretionary stocks each sagged 0.1%.
ON WALLSTREET
U.S. stocks closed higher on Thursday, breaking two days of losses amid details of quantitative easing in the euro-zone and anticipation of Friday's non-farm payrolls report.
The Dow Jones Industrials finished the day positive 38.82 points at 18,135.72
The S&P 500 remained positive 2.51 points to 2,101.04
The NASDAQ index was stronger by 15.67 points to 4,982.81.
In corporate news, food and general bulk merchandise retailer Costco Wholesale reported better-than-expected quarterly profit early Thursday, boosted by a tax benefit related to its special cash dividend last month.
Costco, the third-largest U.S. retailer, said net income rose to $598 million U.S, or $1.35 per share, for the second quarter ended Feb. 15, from $463 million U.S., or $1.05 per share a year earlier.
Simon Property is mulling a bid for rival mall owner Macerich, said an initial report by the Wall Street Journal. Simon hasn't made a formal offer as yet, although it did reveal a 3.6% stake in Macerich last year.
Piper Jaffray downgraded McDonald's to neutral from overweight, saying that the stock is appropriately valued after a recent 12% increase, and that initiatives to increase sales may work more slowly many expect.
Cooper Cos., Diamond Foods, Esterline Tech and Fresh Market report after the close.
The European Central Bank will start its trillion-euro ($1.1-trillion U.S.) bond-buying program on Monday, with expectations to end in September 2016, President Mario Draghi said during a press conference.
U.S. monthly jobless claims rose 7,000 to a seasonally adjusted 320,000 for the week ended Feb. 28, above estimates.
Other data reports came in slightly negative, mostly due to seasonal factors, analysts said.
Factory orders declined 0.2%, missing estimates of a 0.1% gain. Productivity topped estimates with a decline of 2.2% versus estimates of a 2.3% decline but below the 1.8% pace it had reported last month.
The big data point for the week is the February U.S. jobs report, released before the bell on Friday. Analysts expect about 240,000 non-farm payrolls, below last month's 257,000. Hourly earnings and unemployment will be key indicators for investors seeking insight on the
Fed's timing of an interest rate hike.
Prices for 10-year U.S. Treasuries eked up, lowering yields to 2.11% from Wednesday’s 2.12%. Treasury prices and yields tend to move in opposite directions.
Oil prices cooled 70 cents to $50.83 U.S.
Gold prices moved lower by two dollars to $1,198.90 U.S.
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