Toronto's main index moved well ahead of other North American markets this afternoon as financial and metals stocks led triple-digit gains.
The S&P/TSX composite index collected itself out of the ashes of yesterday’s 300-point-plus loss to regain 152.91 to end up at 9,862.42. Only this week, the index soared well above the 10,000 mark.
The TSX metals sector led gains, with Teck Resources rising $1.08, or 8% to $14.57.
Financial stocks also regained some of their footing, as Royal Bank jumped 2.9%, or $1.19, to $42.45.
Gold stocks pulled ahead as Iamgold Corp. reported that first-quarter profits rose 53% to $52.5 million U.S. due to a big gain on the sale of gold bullion, sending its shares down 11 cents to $11.45.
In earnings, Canadian Tire Corp. said first-quarter profits fell 26% to $49.7 million as lower gas prices eroded earnings from its fuel stations. However, the automotive and hardware retailer said sales at its stores rose four per cent. Its shares got a 6.7% boost at $48.20.
Gildan Activewear Inc. shares rose 24% to $15.66 after the company said weak sales pulled net earnings down to $7.1 million U.S. versus $42.1 million U.S. a year earlier. Shares were ahead more than $3, or 24%, to $15.65
CVTech Group Inc. net income fell to $300,000 in the first quarter as revenues plunged nearly 28% from a year ago, due to the impact of a slow economy on both of its business segments. Shares were up three cents to $1.29.
Flight training firm CAE Inc. is slashing 700 jobs as it anticipates a dropoff in orders from the civil aviation sector. The cuts will trim about 10% of its workforce, or 700 jobs, 600 of which will fall at its Montreal operations. Shares lost 17 cents to $7.08.
In other news, over-the-counter derivatives should trade through exchanges to avert a "meltdown" and reduce risks to the financial system, the head of Canada’s main equities and derivatives market said.
"We were pretty close to a meltdown and I actually think listed marketplaces with multilateral clearing are part of the answer to that question," TMX Group Inc. Chief Executive Officer Thomas Kloet said in an interview yesterday in New York. Regulators "have to address that," he said.
Kloet joins U.S. Treasury Secretary Timothy Geithner in calling for over-the-counter derivatives markets to be moved onto regulated exchanges and trading platforms. Transactions in this $684-trillion U.S. market are now typically conducted over the phone between banks and customers.
Toronto-based TMX gets about 16% of its revenue from derivatives trading.
The Canadian dollar was up 0.33 cents, to 85.41 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, all but two ended positive, led by metals and mining, up 3.7%, followed by real-estate stocks, advancing 2.6% and financials, ahead 1.9%.
The laggards were health-care stocks, down 0.8%, and utilities, off 0.5%
The TSX Venture Exchange picked up seven points to 1,060.52 while the Nasdaq Canada Index jumped 15.87 points to 681.85.
ON WALLSTREET
The Dow Jones Industrials average recovered 46.43 points to end up at 8,331.32
The S&P 500 index was ahead 9.14 points at 893.06, while the Nasdaq Composite Index gained 25.02 points, to 1,689.21.
In New York, stocks rallied Thursday, bouncing back after several down sessions as investors weighed some weaker-than-expected reports with growing economic optimism.
Bets that the economy is closer to stabilizing has fueled the recent rally, lifting all three major gauges by more than 30% over nine weeks. But a few recent reports have raised worries that investors may have gotten ahead of themselves, including Wednesday's weak retail sales report and Thursday's surprise rise in jobless claims.
The Labor Department said 637,000 people filed for first-time unemployment benefits in the week ended May 9. This was much higher than the economist forecast of 610,000, according to the Briefing.com consensus.
It was also higher than the prior week, when jobless claims totaled 601,000.
The government also said wholesale prices rose 0.3% in April. Excluding food and energy, the Producer Price Index edged up 0.1%. The PPI was expected to have risen 0.2% in April, compared to the prior month's decline of 1.2%, according to a consensus of economist forecasts from Briefing.com.
Wal-Mart Stores reported higher quarterly earnings that met estimates on weaker revenue. The No. 1 retailer also forecast second-quarter earnings in a range that could surpass analysts' current forecasts. Shares fell 1.5%.
Chrysler said it wants to close 789 dealerships, or roughly 25% of those in business, according to a plan filed in bankruptcy court.
General Motors is expected to announce Friday that it will close 1,000 to 2,000 of its dealerships, according to reports.
GM said Thursday that it has agreed to accelerate payments to its parts suppliers, as it teeters closer to bankruptcy. The automaker has until the end of the month to gain enough concessions from its creditors and union to remain viable. However, GM is not expected to meet that deadline and the company's CEO has said that a bankruptcy is "probable."
Treasury prices inched higher, lowering the yield on the benchmark 10-year note to 3.10%, down from 3.11% Wednesday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose 60 cents to settle at $58.62 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery climbed $2.50 to settle at $928.40 U.S. an ounce.
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