Canadian stocks remained higher on Thursday, boosted by strength in the materials sector. Bay Street's main index finished higher for a fourth straight session at its best level in more than two weeks.
The S&P TSX Composite Index gained 88.96 points, to end the day at 10,304.42
Materials stocks did a pickup in business. Agrium was up 5.6% to $45.22 and Potash added 4.7% to $102.54
Industrials stocks have gained strength, led by a 0.9% gain for Russel Metals to $14.43 Bombardier improved 3.1% to $3.72.
Among consumer discretionary stocks, Gildan Activewear strengthened 3.6% to $18.11 and Magna International grew 2.6% to $50.55.
In corporate news, Nexen has declined 6.8% to $21.58 after the company reported that its second-quarter net income was $20 million or $0.04 per share, compared to $380 million or $0.70 per share in the same quarter of last year.
Research In Motion Ltd. and Visto Corporation announced that they have reached a deal to settle all patent litigation between the companies. As part of the deal, RIM will pay $267.5 million U.S. Research in Motion shares were up 3% to $80.72
Moto Goldmines Limited surged 10.1% at $5.14 after Randgold Resources Limited and AngloGold Ashanti announced a joint bid to acquire Moto for $5.00 per share.
Ivanhoe Mines has plunged 14.4% at $8.59 after the Mongolian government received parliament's approval for a long-term agreement with the company for a development and operation of the Oyu Tolgoi mine.
The Canadian dollar subsided 0.27 cents to 89.47 cents U.S.
ON BAYSTREET
All 14 TSX subgroups were in the black at Thursday’s close, led by materials, ahead 1.8%, industrials, 1.6% stronger, and global base metals, 1.4% dearer.
The TSX Venture Exchange moved higher 15.25 points to 1,088.53, while the Nasdaq Canada Index surged 16.26 points to 703.92
ON WALLSTREET
In New York, stocks rallied Thursday, finding momentum in a choppy session, as investors welcomed JPMorgan Chase's better-than-expected profit report and geared up for IBM and Google after the close.
The Dow Jones Industrials average muscled 95.61 points higher, to end Thursday at 8,711.82. The S&P 500 index picked up 8.06 points to 940.74. The tech-rich Nasdaq composite index climbed 22.13 points to 1,885.03
Stocks had been flat to lower through the morning as investors showed caution toward the end of the first up week in five on Wall Street. But equities turned higher in the late afternoon.
Better-than-expected results from Intel and Goldman Sachs have helped support stock gains this week, as investors have sought to push equities higher after four down weeks. But ongoing questions about the length of the recession have hampered any attempts at a bigger move.
As of Wednesday's close, the S&P 500 was up 6% for the week, recovering most of the total 7% lost in the last four weeks.
Currently, S&P 500 profits are expected to have dropped around 35% versus a year ago, according to the latest Thomson Reuters forecast. Google and IBM are due after the close of trading.
Stocks surged Wednesday thanks to Intel and the Federal Reserve. The central bank said the end of the recession is nearing, although unemployment will top 10% by year-end. However, the labor market is seen as a lagging indicator.
Dow component JPMorgan Chase reported a profit of $2.7 billion U.S., or 27 cents per share, easily surpassing forecasts. The profit occurred despite a one-time reduction to earnings related to paying back the government's TARP money.
JPMorgan said strong investment banking results overshadowed losses in its consumer lending and credit card businesses. Shares inched lower.
At the other end of the spectrum, small business lender CIT Group plunged 71% amid bankruptcy fears after the company said late Wednesday that it will not receive a government bailout.
The collapse of Lehman Brothers last September was seen as exacerbating the financial crisis.
However, unlike with AIG and other firms that received government help, a CIT bankruptcy filing is not seen as a risk to crippling the broad financial system. However, the full impact of such a filing isn't clear, with CIT helping to fund as many as one million small businesses.
On the economic front, the Labor Department reported that weekly jobless claims dropped to 522,000 in the week ended July 11, down from the prior week's revised figure of 569,000.
Economists surveyed by Briefing.com expected that 552,000 people collected jobless benefits for the first time in the most recent week.
The Philadelphia Fed index, a regional reading on manufacturing, dipped to negative 7.5 in July from negative 2.2 in June. Economists expected the Philly Fed to have weakened to negative 5.
A record 1.53 million homes are in foreclosure in 2009, according to a report from online foreclosure marketplace RealtyTrac released Thursday.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.55%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained 48 cents to $62.01 U.S.
Gold prices skidded $4 to $935 U.S. an ounce.
