Resource stocks helped give the Toronto stock market a lift Thursday as commodity prices picked up on belief that the U.S. Federal Reserve is ready to help with stimulus in the future.
The S&P/TSX composite index ran up 58.79 points to 11,637.94 while the TSX Venture Exchange added 5.16 points to 1,187.5.
The Canadian dollar prospered 0.29 cents to 99.28 cents U.S.
Nexen Inc.’s net income fell 57% from a year ago to $109 million in the second quarter, a bigger decline than analysts had been estimating. Nexen earned 20 cents per share, which was seven cents per share below estimates. Nexen said the latest quarter’s results were hurt by the unsuccessful Kakuna exploration well in the Gulf of Mexico and its stock lost 24 cents to $17.19.
Shoppers Drug Mart reported second quarter adjusted earnings of $149 million or 71 cents per share, up 4.4% from the same time last year and a penny ahead of estimates. Its shares improved by 24 cents to $42.90.
The energy sector was up and Suncor Energy climbed 48 cents to $30.68.
The base metals sector climbed while copper, viewed as an economic bellwether as it is used in so many industries, ran ahead five cents to $3.52 U.S. a pound. Teck Resources was ahead 38 cents to $31.20 while First Quantum Minerals ran up $1.25 to $17.85.
The gold sector advanced as Goldcorp Inc. was up 51 cents to $33.37.
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 added 5.16 points to 1,187.5. The Nasdaq Canada index picked up 1.18 points to 344.41. The Nasdaq Canada index eked up 1.09 points to 344.68.
All but four of the 14 Toronto subgroups were higher by noon, led by metals and mining, up 4.4%, global base metals, ahead 2.9%, and energy, moving 1.6% to the good.
The four laggards were led by telecoms, down 0.7%, health-care, off 0.5%, and consumer discretionaries, down 0.2%.
ON WALLSTREET
U.S. stocks held modest gains Thursday as investors weighed the latest corporate results against signs of economic weakness.
The Dow Jones Industrials gained 51.46 points by noon ET to 12,892.05
The S&P 500 gained 6.55 points to 1,379.31. The Nasdaq Composite Index was up 32.19 points to 2,974.68
IBM led gainers on the Dow. Big Blue reported quarterly earnings late Wednesday that beat analyst expectations and issued upbeat guidance. Shares were up nearly 4%.
American Express was the worst performing Dow stock. The credit card company said Wednesday that earnings rose in the second quarter, although customer spending was weak. The stock was down more than 3.5%.
eBay was among the biggest gainers and most active stocks on the S&P 500. Shares surged more than 8% after the online auction site reported earnings and revenue that topped forecasts, citing strong growth from PayPal.
Investors had been bracing for a lackluster quarter, but the bulk of corporate results have come in above expectations.
Of the 77 S&P 500 companies that have reported earnings through Wednesday, 48 have topped forecasts, according to research from S&P Capital IQ.
Economically speaking, The worrisome state of the economy may also be limiting gains for the broader market. 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.
The National Association of Realtors said sales of existing homes fell 5.4% to a seasonally adjusted annual rate of 4.37 million in June, from an upwardly revised 4.62 million in May. Analysts were expecting sales to come in at an annual rate of 4.65 million.
The Federal Reserve Bank of Philadelphia released its Business Outlook index, which showed manufacturing activity in the region remains weak so far this month. And after rising for two months in a row, the Conference Board's index of Leading Economic Indicators fell 0.3% in June to 95.6.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.50% from 1.48% late Wednesday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose $2.59 to $92.46 U.S.a barrel.
Gold futures for August delivery rose $16.20 to $1,587 U.S. an ounce.
