Toronto's main stock index edged higher on Thursday as strength in commodity prices boosted resource issues, but gains were tempered by lower earnings from Toronto-Dominion Bank and Canadian Imperial Bank of Commerce.
The S&P TSX Composite Index was still ahead 15.18 points at the close to 13,163.53. The benchmark for Canadian stocks rose yesterday to its highest level since September 2008.
The loonie powered up 1.29 cents to 99.60 cents U.S.
Leading the list of advancers was Canadian Natural Resources Ltd which climbed 1.2% to $41.75.
The independent oil explorer forecast a higher capital budget for 2011 and said it would use about 45% of the spending for long-term growth.
Also helping to lift the market was Teck Resources, up 2.9% at $54.02, and Talisman Energy, which climbed 1.4% to $20.12 as copper, gold and oil prices edged higher.
TD, Canada's second-biggest lender, and CIBC, the country's fifth-biggest bank, reported mixed fourth-quarter results on Thursday as a sharp drop in trading revenue offset stronger retail banking results.
TD shed 2.7% to $73.29, while CIBC sank 2.2% to $79.31.
Also on the downside was Gildan Activewear Inc., which was one of the top net losers on the market and down 7.2% at $29.19. The clothing maker reported a 34 percent rise in profit and forecast higher 2011 sales, but its financial forecasts fell short of expectations.
Bombardier Inc., one of the most heavily traded stocks on the market, fell 2.1% to $4.68. The civil-aircraft and train maker reported a drop in quarterly profit and weak revenue. It said the aerospace environment remained difficult.
ON BAYSTREET
The TSX/Venture Exchange advanced 8.58 points to 2,095.74, while the Nasdaq Canada index gained 14.32 points to 766.28
In Toronto, all but one of the 14 subgroups were higher. Health-care stocks were 2.9% stronger, while metals and mining moved ahead 1.4%, and global base metals prospered 1.1%,.
The lone dissenter was the financial sector, off 0.8%.
ON WALLSTREET
In New York, stocks rallied 1% Thursday, extending the previous session's big gains, as investors cheered strong retail sales and welcomed the European Central Bank's plan to extend liquidity measures.
The Dow Jones Industrials chugged ahead 106.63 points to end Thursday at 11,362.40
The S&P 500 surged 15.46 points to 1,221.53. The Nasdaq Composite Index spiked 29.92 points to 2,579.35.
Gains were broad-based, with all but four of the Dow 30 rising. Home Depot, Microsoft) and Bank of America led the advances.
Retailers helped prop up stocks as strong chain-store sales rolled in, signaling consumers are loosening their purse strings a bit. Shares of Abercrombie, Dillards and JCPenney all jumped in afternoon trading.
Wednesday’s momentum continued Thursday after the ECB announced it will continue its stimulus measures and will keep buying government bonds.
Recently, investors have worried that Spain will be the next domino to fall in Europe. But Spain does not intend to tap the European Union fund, Spanish Prime Minister Jose Luis Rodriguez Zapatero said in a CNBC interview Thursday morning.
Investors also sifted through reports from key retailers on their same-store sales through the morning. Discount food shopping giant Costco announced that its sales were up 9% year over year.
Clothing brand Abercrombie & Fitch reported sales were up 22% and Macy's showed an increase of 6.1%. Same-store sales measure sales at stores open at least a year.
Elsewhere, food and beverage giant PepsiCo said it would buy Russian food and beverage company Wimm-Bill-Dann Foods for nearly $5.8 billion U.S. The purchase will establish PepsiCo as the largest food and beverage business in Russia. Shares of PepsiCo dipped 1%.
Also, Johnson & Johnson announced that it is recalling 12 million bottles of over-the-counter Mylanta and almost 85,000 bottles of its AlternaGel liquid antacid. Shares of Johnson & Johnson edged up slightly.
On the economic side, the government's weekly jobless claims report came out before the start of trade. Jobless claims rose to 436,000. Economists polled by Briefing.com had expected that 422,000 Americans filed new claims for unemployment last week, after 410,000 filed in the previous week.
After the opening bell, the National Association of Realtors said its pending home sales index surged 10.4% in October, after slipping 1.8% in September. The index, which is a measure of sales contracts for existing homes, was expected to be unchanged.
The price on the benchmark 10-year U.S. Treasury sagged toward day’s end, raising the yield to 3.00% from 2.96% late Wednesday. Treasury prices and yields move in opposite directions.
Oil rallied $3.84 a barrel to $87.95 U.S. Gold futures for February delivery gained $1.00 to $1,389.30 U.S. an ounce.
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