The Toronto stock market was sharply higher Thursday as good economic news from China sent commodity stocks higher on the resource-heavy TSX and helped curb worry that Europe’s debt crisis will seriously hamper the global recovery.
The S&P TSX Composite Index leaped 185.21 points, or 1.6% to close at 11,635.85
The Toronto Stock Exchange’s base metals component grew, as the July copper contract on the New York Mercantile Exchange rose three cents to $2.88 U.S. a pound. Teck Resources was up $1.73 at $34.19 while Western Coal Corp. climbed 21 cents to $4.79.
Railway stocks were up smartly alongside mining stocks, with Canadian National Railways ahead $2.32 at $61.76.
The energy sector was up, as Suncor Energy rose 89 cents to $33.39 while Canadian Natural Resources was ahead $1.41 at $37.16.
Financial stocks were also stronger, with Royal Bank improving by 95 cents to $52.98 and Scotiabank gaining 97 cents to $49.66.
The TSX global gold sector was down slightly as Goldcorp Inc. faded 24 cents to $45.20.
On the corporate front, shares in yoga wear retailer Lululemon Athletica gained $1.12 to $42.10 after it reported that its first-quarter net profits tripled to $19.6 million, compared with earnings of $6.5 million a year ago. Net revenues for the first quarter rose 69.3% to $138.3 million.
Shares in Storm Exploration Inc. rose $2.13, or 18.5%, to $13.63 after the Calgary-based company said it has agreed to be purchased by junior oil and gas producer ARC Energy Trust for $680 million. ARC units were off 74 cents to $20.15.
Discount retailer Dollarama Inc. said its first-quarter profit doubled to $22.4 million as sales increased by 14% from the same time last year. Its shares were 20 cents higher at $25.45.
Travel company Transat A.T. Inc. said intense competition and a strong Canadian dollar had a negative impact on its latest quarterly financial results. Net income fell to $6.2 million, down from $42.2 million in the year-earlier quarter. Transat’s revenue fell to just under $1.1 billion -- a decline of $69 million from last year’s second quarter. The results were better
than expected and Transat’s shares climbed 17 cents to $10.20.
Shareholders of Mega Brands have approved a reverse stock split that’s designed to boost the toymaker’s stock price. Mega Brands says the share consolidation will reduce the 327.3 million shares to between 16.4 million and 32.7 million depending on what the board approves. Its shares were up half a cent at 44.5 cents.
Meanwhile, Statistics Canada said New Housing Price Index rose 0.3% in April, after recording 0.3% in March. On year-over-year basis, the index was up 2.5% in April after recording 1.6% growth in March
In another report, the agency said the country's merchandise exports declined 1.0% and imports fell 2.2% in April even as volumes improved for a third straight month. Meanwhile, Canada's trade balance with the world recorded a surplus of $175 million in April, recovering from a deficit of $236 million in the previous month.
The Canadian dollar picked up 1.24 cents to 97.01 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups pointed upwards, global base metals most resoundingly so, at 5%, while metals and mining stocks vaulted 4.8% and industrials were ahead 2.9%.
Only gold fell, and only 0.2% at that.
The TSX Venture Exchange gained back 8.34 points to 1,452.91, while the Nasdaq Canada index moved 17.44 points higher to 674.87.
ON WALLSTREET
In New York, stocks continued to advance Thursday as concerns over Europe's debt crisis and its impact on the global recovery were calmed by a sharp boost in Chinese exports and a strengthening euro.
The Dow Jones industrial average was higher by 273.28 points, or 2.8%, to 10,172.53, with shares of Caterpillar rising more than 5%, along with Alcoa, American Express and Chevron gaining more than 3.5%.
The S&P 500 index gained 31.15 points to 1,086.84, led by a bounce in energy shares that dragged on the market during the previous session. Anadarko Petroleum spiked almost 11%, while Baker Hughes Inc. added more than 8%. Halliburton, Massey Energy and Diamond Offshore Drilling rose about 7%.
The Nasdaq composite index grew 59.86 points to 2,218.71.
Shares of ARM Holdings spiked as much as 11% on revived speculation that Apple would bid for the mobile chip designer.
While most bank shares were up with the broader market, Goldman Sachs' stock plunged more than 3% to a new 52-week low as investors digested reports that the Securities and Exchange Commission is investigating a mortgage investment Goldman bundled and sold in 2006.
On the subject of Wall Street reform, a joint committee of lawmakers will convene later Thursday afternoon to begin hammering out differences and merge the financial reform bills passed in both the Senate and House of Representatives.
The Democrats hope a final vote in both chambers will take place before July 4.
The U.S. Securities and Exchange Commission approved new rules Thursday that will halt trading uniformly across all U.S. markets for stocks experiencing 10% price swings within a five-minute period to prevent a repeat of last month's "flash crash."
The rules could go into effect as early as Friday, the SEC said.
Economically speaking, a government report showed that jobless claims fell 3,000 to 456,000 last week. Economists surveyed by Briefing.com expected filings to slide to 450,000. Meanwhile, the number of Americans filing for ongoing unemployment insurance sank by 255,000 to the lowest level since December 2008.
The Commerce Department said the trade deficit increased 0.6% in April, widening to $40.3 billion from a downwardly revised $40.0 billion the previous month. That was lower than the $41.3 billion that analysts surveyed by Briefing.com expected.
Treasury prices fell sharply, boosting the yield on the 10-year note to 3.32% from Wednesday’s 3.19%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil improved $1.50 to $75.90 U.S.
Gold prices shed four dollars to $1,218 U.S. an ounce
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