Bay Street stocks surged higher on Thursday afternoon, boosted by foreign markets and favourable earnings figures. Resource sectors are leading the gainers on the street.
The S&P/TSX Composite Index zoomed ahead 236.93 points, or 2.3%, to end the day at 10,669.28.
Mining stocks have surged, as First Quantum jumped 4.5% to $68.22, Thompson Creek Metals was up 5.3% at $15.90 and Inmet added 2.7% to close at $45.32.
Teck Resources rallied 4.4% to $25.85 after reporting its second-quarter net earnings of $521 million or $1.07 per share, compared to $500 million or $1.12 per share in the previous year period.
Materials stocks have gained, as Potash Corp. raced ahead 6.4% to $103.73. The fertilizer maker reported second-quarter net earnings of $187.1 million U.S. or $0.62 U.S. per share, compared to $905.1 million U.S. or $2.82 U.S. per share in the same quarter last year. Rival Agrium added 6.2% to $46.84.
Energy stocks added strength as Canadian Natural Resources was up 5% to $63.59 and Canadian Oil Sands hurtled 3.5% to $27.32.
EnCana Corp. prospered 2.7% to $59.20. The company reported second-quarter net earnings plunged to $239 million U.S. or $0.32 U.S. per share from prior year's net earnings of $1.22 billion U.S. or $1.63 U.S. per share.
Husky Energy added 6.1% to $33.95 after the company reported second-quarter earnings of $430 million or $0.51 per share, compared to $1.36 billion or $1.60 per share a year earlier.
In other corporate news, TransForce advanced 4.9% to $6.22, after reporting its second-quarter net income decreased to $17.98 million or $0.21 per share from $19.28 million or $0.22 per share in the year-earlier period.
Shoppers Drug Mart Corp dropped 3.9% to $45.42 after its target price was reduced from $54 to $52 at UBS. The firm maintained a Buy rating.
Vitran Corporation gained 2.5% to $10.86 after the company reported second-quarter net income was $440,000 U.S. or $0.03 U.S. per share, lower than $4.58 million U.S. or $0.34 U.S. per share last year.
Also on Thursday, the Bank of Canada predicted the economy will improve by 1.3% in the current quarter and 3% in the fourth quarter, signaling the end of the recession. The BoC did express concern over the financial situations in the U.S. and Europe in its quarterly monetary policy report.
The Canadian dollar gained 1.05 cents to 92.02 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups were higher. Metals and mining was the strongest of the bunch, advancing 4.6%, followed by global base metals, up 3%, and energy, up 2.9%.
The two laggards were consumer staples, down 0.9% and gold, off 0.7%.
The TSX Venture Exchange was up 14.34 points, to 1,137.79, while the Nasdaq Canada Index regained 28.59 points to 748.55
ON WALLSTREET
In New York, stocks rallied Thursday afternoon, with the Dow jumping triple digits and hitting its highest point since November, as investors welcomed a series of better-than-expected quarterly results.
A home sales report that topped estimates also added to the gains.
The Dow Jones Industrials gained 188.03 points - or 2.1% - to end the day at 9,069.29, its first close above the 9,000 mark since January. The S&P 500 index added 22.22 points to 976.29. The tech-rich Nasdaq composite picked up 47.22 points, to 1,973.60, for its 12th-straight winning session, its longest streak since 1992.
Treasury bond prices plunged, raising the corresponding yields, as investors pulled money out of the safe-haven and put it into stocks. The dollar gained versus other major currencies. Oil and gold prices rose.
Stocks have been on the rise for the last week-and-a-half, bouncing after a four week retreat, as better-than-expected corporate reports have surprised investors.
Another batch of better-than-expected results led the broader advance Thursday.
Ford Motor reported a second-quarter profit due to its efforts to reduce debt. The automaker also reported an operating loss that was narrower than a year ago and smaller than forecast. Ford's drop in revenue was also narrower-than-expected. Shares gained 7%.
Ford is the only U.S. automaker that was not forced to declare bankruptcy last quarter, as a result of the slowdown in auto demand and broad-based recession.
Dow component AT&T reported quarterly sales and earnings that fell from a year ago but topped estimates. The telecom benefited from its exclusive contract with Apple, as strong iPhone sales boosted subscriber growth. AT&T shares jumped 4%.
Fellow Dow component 3M reported weaker quarterly sales and earnings that topped estimates. Considered to be a bellwether for the economy due to the breadth of its businesses, 3M also lifted its forecast for full-year profit. Shares gained 4% and helped lift the Dow in the morning.
IBM, Johnson & Johnson, Verizon Communications, Chevron and Exxon Mobil were the other big Dow gainers Thursday.
But another Dow component, McDonald's, disappointed investors by reporting a bigger-than-expected drop in revenue and an in-line drop in earnings. Shares fell 3%.
Other company news: Bristol-Myers Squibb said late Wednesday that it will buy biotech company Medarex for $2.4 billion U.S.
Amazon.com said Wednesday it would buy online shoe retailer Zappos.com for $807 million U.S.
On the economic front, the number of Americans filing new claims for unemployment rose to 554,000 last week from 524,000 in the previous week, according to a Labor Department report released Thursday morning. Economists thought claims would rise to 557,000, according to Briefing.com estimates.
June existing home sales rose to a 4.89 million unit annual rate from a revised 4.72 million unit rate in May, according to the National Association of Realtors. Sales were better than expected, with economists forecasting sales would rise to a 4.85 million annualized rate.
The median home price continued to slide, falling 15.4% versus a year ago.
Treasury prices went sharply down, pushing upward the yield on the benchmark 10-year note to 3.68%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil charged ahead $1.76 to $67.16 U.S.
Gold prices were up $2 at $955 U.S. an ounce.
