Canada’s main stock index leaped off the bench on Thursday, as strong earnings from some global bellwether companies allayed fears of the economic slowdown biting into profits.
The S&P/TSX Composite Index gained 85.40 points, to open trading at 11,664.55
The Canadian dollar prospered 0.29 cents to 99.28 cents U.S.,
Among Canadian stocks to watch, Nexen Inc's second-quarter profit fell 57% as it took a charge on a failed exploration well in the Gulf of Mexico.
Trucker Vitran Corp posted a wider second-quarter loss on weakness in its less-than- truckload shipping business in the United States.
Economically speaking, Statistics Canada reported this morning that wholesale sales rose 0.9% in May to $49.8 billion, mostly on the backs of sales increases in the computer and communications equipment and supplies industries, motor vehicles and food.
The agency also said that those collecting regular Employment Insurance benefits totaled 512,600 in May, or roughly the same as April, after three straight downward months. The number of beneficiaries decreased slightly in Alberta, while it edged up in New Brunswick.
ON BAYSTREET
The TSX Venture Exchange increased 4.65 points to 1,186.99. The Nasdaq Canada index picked up 1.18 points to 344.41.
All but two of the 14 Toronto subgroups were higher in the first hour of trade, led by metals and mining, up 3.4%, global base metals, ahead 2.1%, materials, moving 1.5% to the good.
The two laggards were health-care, off 0.5%, and telecoms, down 0.2%.
ON WALLSTREET
U.S. stocks opened mixed Thursday as investors took in the latest corporate results, while jobless claims ticked back up.
The Dow Jones Industrials faded 16.65 points soon after the opening bell to 12,892.05
The S&P 500 slid 0.1 points to 1,372.68. The Nasdaq Composite Index was up 11.01 points to 2,953.61.
The early gains were led by IBM, which reported quarterly earnings late Wednesday that beat analyst expectations and issued upbeat guidance.
Investors had been bracing for a lackluster quarter, but the bulk of corporate results have come in above expectations.
Tech firms reported mixed results. Nokia's stock tumbled after the company reported a wider loss, and Verizon reported earnings in line with forecasts. Google and Microsoft will release results after the closing bell.
Morgan Stanley, the last of the big banks to report quarterly results, missed earnings and revenue forecasts, sending shares down more than 3%.
Shares of Walgreen surged after the company finally reached a multi-year pharmacy network agreement with Express Scripts.
Southwest Airlines reported revenue of $4.6 billion U.S. and earnings of 30 cents U.S. a share, beating forecasts.
Economically speaking, initial jobless claims last week came in higher than expected, at 386,000. That was an increase of 34,000 from the previous week's revised figure.
This morning, the National Association of Realtors will release data on existing home sales for June, which is expected to come in at an annual rate of 4.65 million.
Also this morning, the Federal Reserve Bank of Philadelphia will release its Business Outlook index, and the Conference Board will release its Leading Economic Indicators index.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.51% from 1.48% late Wednesday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose 97 cents to $90.84 U.S.a barrel.
Gold futures for August delivery rose $13.30 to $1,584.10 U.S. an ounce.
