The Toronto stock market reversed itself and gained ground in afternoon trading, even as weak economic data from both the United States and China reignited worries about the pace of the global economic recovery.
The S&P TSX Composite Index sprinted ahead in the final hour to gain 121.61 points, or 1.1%, to close at 11,741.77
The base metals component slipped as the September copper contract in New York was unchanged at $3.01 U.S. a pound. Teck Resources lost 49 cents to $34.02 while Western Coal Corp. slipped 14 cents to $4.09.
Among energy issues, Suncor Energy was down 15 cents to $32.68 while Canadian Natural Resources gained 12 cents to $36.90.
In the gold sector, Goldcorp Inc. faded 11 cents to $42.89.
Among telecoms, BCE Inc. was unchanged at $31.65.
In other corporate news, Nexen Inc. says higher output and prices during the second quarter helped earnings come in at $255 million, or 49 cents a share, beating analyst estimates. That’s up from $20 million or four cents per share in the same period of 2009. Cash flow and revenue were also higher and its shares advanced 93 cents to $22.31.
Thompson Creek Metals Co. Inc. is diversifying beyond its traditional base of molybdenum with a $650-million deal to acquire junior miner Terrane Metals and its copper and gold assets.
Thompson Creek shares fell 48 cents to $9.42 while Terrane shares jumped 18 cents or 15.4% to $1.35.
Calgary-based Smart Technologies Inc. began trading for the first time Thursday on both the Nasdaq and the Toronto Stock Exchange after completing a $660-million U.S. IPO in Canada and the United States. The company priced its 38.8 million shares at $17 U.S. each, and its shares closed at $17.89, down from a high of $18.35.
Opti Canada Inc., a partner in the Long Lake oilsands project in northern Alberta, reported a big loss in its latest quarter as the company took a hit on its hedging contracts and faced higher operating costs and currency losses.
Opti lost $152 million or 54 cents a share in the second quarter. That compares with a loss of $9 million or four cents a share for the same 2009 period. Its shares lost six cents to $1.89.
In economic news, Statistics Canada said manufacturing sales advanced 0.4% to $44.80 billion in May, recording growth for the eighth time in nine months. The motor vehicle and parts industries were the primary contributor for higher sales.
In another report, the agency said, the number of new motor vehicle sales edged up 0.2% to 126,475 in units in May, with higher sales of truck offsetting lower passenger car sales.
Meanwhile, the Canadian Real Estate Association said existing home sales fell 8.2% to 33,959 units in June from 37,005 units in the previous month.
The Canadian dollar was 0.42 cents lower at 96.27 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups were positive at the end of the day. Industrials gained 1.6%, while consumer staples prospered 1.5% and materials grew 1.4%.
The two losing groups were metals and mining, down 0.5% and global base metals off 0.03%.
The TSX Venture Exchange regained 2.30 points to 1,386.86 while the Nasdaq Canada index was 4.9 points better at 642.48.
ON WALLSTREET
In New York, stocks end little changed Thursday, erasing bigger losses after weaker than expected reports on the economy revived worries about growth.
The Dow Jones industrial average moved to within sight of the breakeven point, but fell just 7.41 points short to 10,359.31
The S&P 500 index moved up 1.31 points to 1,096.48. The Nasdaq composite index skidded 0.76 points to 2,249.08.
Stocks tumbled through most of the session, but managed to cut losses near the close thanks to a late-session advance in financial and commodity shares.
On Thursday afternoon, the financial reform bill cleared a big hurdle in the Senate, moving it closer to safe passage and onto the desk of President Obama to be signed into law.
The legislation is designed to limit big banks, protect consumers and prevent the future reoccurrence of financial crises like the one that hit in 2008.
Dow component JPMorgan Chase posted a second-quarter profit of $4.8 billion U.S., or $1.09 U.S. per share, trouncing expectations. The bank's strength in the quarter was due partly to a decline in the number of consumers defaulting on loans. However, JPMorgan's shares slipped amid the broader market selloff.
Internet behemoth Google is due to report results after the market close Thursday.
After the close, Google reported quarterly earnings that missed forecasts on revenue that beat estimates, sending shares lower in after-hours trading.
JPMorgan's profit report added to bets that quarterly earnings will hold up despite the slower growing economy. But that wasn't enough to distract investors from a spate of mixed-to-weaker economic reports, particularly in the aftermath of a big rally over the past week.
Earnings for the S&P 500 are expected to have risen 28% versus a year ago, according to the latest from earnings tracker Thomson Reuters.
While China's economy continued to grow last quarter, the pace eased, a government report showed Thursday.
China's gross domestic product, the broadest measure of economic output, grew at an annual rate of 10.3% in the second quarter, down from the 11.9% rate during the first quarter.
Minutes from the U.S. Federal Reserve's June policy meeting released Wednesday showed that Fed officials are less optimistic about the health of the economy.
The central bank also lowered its forecast for U.S. gross domestic product, expecting GDP to grow between 3% and 3.5% this year, down from its earlier outlook of 3.2% to 3.7%.
Private-equity firm Carlyle Group is buying vitamin maker NBTY in a $3.8-billion U.S. cash deal that values NBTY's shares at $55 U.S. per share, a 47% premium above the stock's closing price Wednesday.
Economically speaking, the Department of Labor said jobless claims fell more than expected last week. The number of Americans filing new claims for unemployment dropped 29,000 to 429,000, the lowest level since August 2008. Economists were expecting claims to slip to 450,000 from an upwardly revised from 458,000 in the previous week.
The Producer Price Index, a measure of wholesale inflation, fell 0.5%, the Commerce Department said. The index was expected to have declined 0.1% in June after dropping 0.3% in May.
The so-called core PPI, which excludes volatile food and energy prices, edged up 0.1% as expected, after rising 0.2% in the previous month.
The Empire manufacturing survey, a reading of manufacturing in the New York area, plunged to 5.08 in July from 19.57 in June. Economists were expecting the measure to fall to 18.
Industrial production rose 0.1% in June after rising 1.3% in May. Economists thought it would hold steady. Capacity utilization held steady at 74.1% in June, versus forecasts for a rise to 74.2%.
Treasury prices jumped, lowering yields on the 10-year note to 2.99% from Wednesday’s 3.10%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil faltered 22 cents to $76.82 U.S.
Gold prices inched ahead two dollars to $1,209 U.S. an ounce.
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