The Toronto stock market held onto a solid triple-digit gain Thursday afternoon as commodity prices soared on signs of growth in Europe and some upbeat earnings reports.
The S&P TSX Composite Index finished ahead 154.43 points, or 1.3%, to 11,667.76
The TSX base metals sector soared as the September copper contract on the New York Mercantile Exchange saw another big gain, adding 7.15 cents to $3.16 U.S. a pound. Since the beginning of the week, the price of copper has climbed more than 8%. Shares in Teck Resources Ltd. added $1.28 or 3.6% to $36.42.
The Toronto energy sector climbed as shares in Suncor Energy Inc. added 87 cents or 2.7% to $33.41.
Gold shares added strength, as stock in Barrick Gold Corp. added 16 cents to $43.96.
Financials rose with shares in CIBC gaining three cents to $67.27.
Second-quarter earnings also began to trickle in Thursday from some Canadian companies.
Calgary-based Precision Drilling Corp. reported a net loss of $67 million, surprising analysts who had expected a small profit. Shares in the company lost 20 cents or 2.6% to $7.60.
Forestry company Norbord Inc. returned to profitability with net income of $37 million U.S. as sales volumes and North American pricing improved along with a resurgence in construction activity. Shares in Norbord added $1.14 or 9.9% to $12.64.
Loblaw Co., the country’s largest grocery store operator, said its quarterly profit of $180 million was down nearly seven per cent compared with the same time last year, but still beat analysts’ expectations. Shares in the company gained 36 cents to $41.78.
And Shoppers Drug Mart Corp. said its profit increased by 6.2% to $145 million, with sales up 5%. Shoppers said the earnings came before the impact of provincial drug program reforms in Ontario, Quebec and B.C., some of which came into effect July 1. Shares in Shoppers gained 10 cents to $35.60.
Canadian convenience-store operator Alimentation Couche-Tard Inc. has increased its hostile offer for U.S. retailer Casey’s General Stores by 75 cents per share to $1.9 billion U.S. including net debt. Shares in Couche-Tard moved 50 cents higher at $21.50.
In economic news, Statistics Canada said retail sales edged down 0.2% in current dollars to $36.0 billion in May, with receipts from building material and garden equipment stores leading the decline. Economists were looking for retail sales to rise 0.5% in May, following a 2.0 % decline in April.
The Canadian dollar was 0.80 cents higher to 96.25 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups moved higher. Metals and mining led the parade with a 4% hike, while global base metals leaped 3.8% and industrials soared 2.2%.
The two laggards were health-care issues, off 0.2%, and utilities, down 0.1%.
The TSX Venture Exchange tacked on 22.86 points to 1,388.42 while the Nasdaq Canada index was up 11.70 points at 633.31
ON WALLSTREET
In New York, stocks rallied Thursday after better-than-expected earnings and forecasts from 3M, Caterpillar, AT&T and UPS helped reassure investors about the pace of the economic recovery.
The Dow Jones industrial average zoomed 201.77 points, or 2%, higher on the day to 10,322.30
The S&P 500 index moved 24.08 points higher to 1,093.67. The Nasdaq composite index jumped 58.56 points to 2,245.89.
Stocks slumped Wednesday after Federal Reserve Chairman Ben Bernanke told Congress the outlook for the economy was "unusually uncertain," adding to worries about the pace of the recovery.
But the tone was positive Thursday, on the back of improved earnings, better-than-expected housing market news and a surge in European markets.
Dow component Caterpillar reported higher quarterly sales and earnings that topped estimates due to better sales of gear for the mining, infrastructure and energy industries. Caterpillar also boosted its 2010 profit forecast. Shares gained 1.4%.
Fellow Dow component 3M reported higher quarterly sales and earnings and said that full-year 2010 profit will exceed its earlier targets, thanks to strong demand in both the United States and abroad. The company is seen as a good proxy for the economy due to the breadth of its business, which includes everything from Scotch tape to films for flat-screen TVs.
UPS reported higher quarterly sales and earnings that topped estimates and said that 2010 earnings will surpass its earlier forecasts. The delivery company cited an increase in package revenue in both the United States and abroad. Shares gained 6%. UPS is often seen as an economic bellwether due to the nature of its business.
Dow component AT&T reported higher quarterly earnings that topped estimates and higher revenue that was shy of estimates. The company also lifted its 2010 forecast, citing cost cutting and a surge in wireless business, thanks to its exclusive iPhone deal with Apple.
After the close, Dow components Microsoft and American Express reported better-than-expected earnings. Microsoft shares were little changed, and American Express shares eased.
Late Wednesday, eBay reported higher quarterly sales and earnings that topped estimates, thanks to strength at its PayPal only payments unit. The online auctioneer also lowered the high end of its full-year 2010 profit forecast, citing the impact of the weaker euro. Shares gained 5% Thursday.
General Motors said it will buy auto financing firm AmeriCredit in a $3.5-billion U.S. all-cash deal. The deal gives GM a lending unit after selling its majority stake in GMAC in 2006. The deal was also seen as a key step as GM prepares its initial public offering for later this year, after the government restructured it in bankruptcy. AmeriCredit shares jumped 23%.
Computer maker Dell agreed to pay $100 million U.S. to settle fraud charges with the Securities and Exchange Commission. Chairman Michael Dell and former CEO Kevin Rollins will pay $4 million U.S. each. Dell shares finished 2.5% higher.
Economically speaking, the Labor Department said 464,000 Americans filed for their first week of unemployment insurance last week, up 37,000 from the previous week. Economists were expecting the 445,000 initial claims, according to a consensus estimate from Briefing.com.
Sales of existing home sales fell 5.1% in June from May levels, according to a report from the National Association of Realtors released Thursday. But the drop was smaller than expected.
Sales rose nearly 10% from a year earlier.
The index of leading economic indicators fell 0.2% in June, the Conference Board reported, after rising 0.5% in May. Economists expected the index to have fallen 0.4%.
Treasury prices settled, as yields on the 10-year note increased to 2.94% from Wednesday’s 2.89%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gathered $2.54 to $79.10 U.S.
Gold prices added three dollars to $1,195 U.S. an ounce.
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