Toronto stocks surged to a nine-day high on Thursday, in tandem with U.S. stocks, as investors considered employment data on both sides of the border. Strength in the energy and gold sectors led the Bay Street market higher.
The S&P/TSX Composite Index jumped 254.92 points or 2.5% to move to 10,361.38, erasing – and then some - a 4.4% plunge on Monday.
Energy stocks added strength, as Baytex Energy was up 4.5% to $19.64 after being upgraded to Outperform from Sector Perform at RBC Capital Markets.
Talisman Energy climbed 3.5% to $16.52 after the stock was upgraded by Goldman Sachs to Neutral from Sell.
Gold stocks rose as the precious metal climbed. Iamgold jumped 5.6% to $12.24 after being upgraded to Buy from Market Perform at Cormark Securities.
In other big names, Eldorado Gold surged 10% to $10.75 and Barrick Gold was up 5.3% to $40.75.
Mining stocks also rose, with First Quantum up 4.2% to $53.99 and HudBay added 2.2% to $7.95.
In corporate news, Mad Catz Interactive plunged 17.1% to 34 cents after the company reported a fourth-quarter net loss of $3.7 million U.S. or $0.07 U.S. per share, compared to a loss of $800,000 or $0.02 U.S. per share in the same quarter last year. Net sales for the fourth quarter were $22.8 million U.S., up 3.9% from $21.9 million U.S. in the comparable quarter last year.
Wi-LAN was down 2.3% to $2.12 after the company said it signed bought deal agreement with a syndicate of underwriters to sell eight million common shares at a price of $2.05 per common share for gross proceeds of $16.4 million.
Statistics Canada revealed non-farm payrolls dropped 51,400 in the month of April, down 0.4% from the previous month.
The Canadian dollar subsided 0.38 cents to 86.18 cents U.S.
ON BAYSTREET
All 13 TSX subgroups worked their way into the black, gold shining the brightest, up 4.5%, followed by energy stocks, ahead 4% and materials, gaining 3.6%.
The TSX Venture Exchange moved ahead 12.39 points to 1,103.05, while the Nasdaq Canada Index tailed off 8.59 points to 679.07.
ON WALLSTREET
In New York, stocks rallied Thursday, finding momentum after a week of choppy trading, as investors scooped up a variety of shares hit in the recent selloff - including commodity, consumer, homebuilding and tech issues.
The Dow Jones Industrials average moved ahead 172.54 – or 2.1% - to end the day at 8,472.40.
The S&P 500 index added 19.33 points to 920.27. The Nasdaq grew 37.20 points to 1,829.54.
Stocks have dipped over the last week as the more-than-three-month-old rally lost steam. But that selloff seemed to draw new buyers Thursday, thanks in part to strong demand for Treasury's $27-billion U.S. seven-year note auction, which sent bond yields lower.
A rally in commodities and some end-of-quarter buying also helped.
Gains were broad based Thursday, with 28 out of 30 Dow issues rising, led by IBM, Boeing, United Technologies and oil components Chevron and Exxon Mobil.
Dow component Bank of America fell as the hearing about its purchase of Merrill Lynch created some investor concern.
Fellow Dow financial issue Travelers fell, too.
Bed Bath & Beyond reported higher quarterly earnings late Wednesday that topped expectations, as cost cutting countered the impact of slowing demand. Shares gained 10% in active Nasdaq trading Thursday.
Homebuilder Lennar reported a larger-than-expected quarterly loss versus a year ago and a smaller-than-expected drop in revenue. However, the company reported a rise in new home sales and orders versus the first quarter, sending its shares up 16%.
Toll Brothers, Centex and KB Home were among the other gainers in the sector.
Federal Reserve Chairman Ben Bernanke told a House committee that he did not pressure Bank of America CEO Ken Lewis to complete his firm's purchase of Merrill Lynch, as Lewis testified two weeks ago. Bernanke also denied having asked former Treasury Secretary Henry Paulson to act on his behalf.
Economically speaking, a U.S. Labor Department report showed that initial jobless claims rose to 627,000 from the previous week's revised figure of 612,000.
Also across the border, a Commerce Department report showed that gross domestic product fell at an annual rate of 5.5% in the first quarter compared to the 5.7% decrease that had been reported. The revision came as a surprise to economists, who had expected the drop in GDP to be unchanged at 5.7%
As mentioned, Treasury prices galloped ahead, moving the yield down to 3.53%. Treasury prices and yields move in opposite directions.
Oil prices moved $1.56 higher per barrel to $70.30 U.S.
Gold gained $5.00 per ounce, to $940 U.S.
