Resource stocks helped propel the Toronto stock market 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 86.55 points to 11,665.70 while the TSX Venture Exchange added 8.53 points to 1,190.87.
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 gained a penny to $17.44.
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 41 cents to $43.07.
The energy sector was up and Suncor Energy climbed 39 cents to $30.59.
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 42 cents to $31.24 while First Quantum Minerals ran up $1.68, or 10.1%, to $18.28.
The gold sector advanced as Goldcorp Inc. was up 74 cents to $33.60.
In the tech sector, Open Text gained 74 cents to $48.90 while CGI Group was ahead 34 cents to $24.33.
Financials also supported the TSX and Scotiabank was 33 cents higher to $52.62.
The telecom sector was the weakest group with Telus Corp. down 58 cents to $62.11.
In other corporate news, the country’s biggest airline has hired a senior federal political official to be its liaison with government.
Air Canada says Derek Vanstone — currently the Prime Minister Stephen Harper’s deputy chief of staff — will become the airline’s vice-president for corporate strategy and government affairs, starting in September. Its shares fell a penny to 98 cents.
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 8.53 points to 1,190.87. The Nasdaq Canada index picked up 0.97 points to 343.56.
In all, 10 of the 14 Toronto subgroups were higher on the day, led by metals and mining, up 4.4%, global base metals, ahead 2.6%, and energy, moving 1.6% to the good.
The four laggards were weighed by health-care, off 0.8%, telecoms, off 0.3%, and consumer discretionaries, down 0.1%.
ON WALLSTREET
U.S. stocks held modest gains Thursday as investors weighed the latest corporate results against signs of economic weakness.
The Dow Jones industrial average gained 34.66 points, or 0.2%, to end the day at 12,943.36. The S&P 500 edged up 3.73 points, or 0.3%, to 1,376.51 The Nasdaq advanced 23.3 points, or 0.8%, to 2,965.90
The advance came despite a rash of disappointing economic reports. Investors were encouraged by some better-than-expected corporate results, though the outlook for profits in the second half of the year is murky.
Analysts say the market's resiliency suggests investors are in a holding pattern, with a bias toward buying selective stocks, as they struggle with a lack of direction.
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%.
Financial shares weighed on the index. Shares of American Express fell 3.5% after the company said Wednesday that earnings rose in the second quarter, although customer spending was weak.
After the market closed, Google reported stronger-than-expected quarterly profits, although sales growth was below forecast. Microsoft reported a quarterly loss, reflecting a $6.2-billion U.S. charge related to its online services department.
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 1.52% from 1.48% late Wednesday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose $2.36 to $92.23 U.S.a barrel.
Gold futures for August delivery rose $9.60 to $1,580.04 U.S. an ounce.
