The Toronto stock market racked up a solid triple digit advance Wednesday amid higher commodity prices and positive news from market heavyweights Barrick Gold and Canadian Pacific Railway, which both beat analyst estimates.
The S&P/TSX index moved higher by 134.85 points, or 1.1%, to greet noon at 12,225.79
The Canadian dollar gave back 0.14 cents at 97.34 cents U.S.
Barrick shares rose 58 cents to $18.59, although they remain at their lowest level in years. It posted $923 million U.S. or 92 cents per share of adjusted earnings in the first quarter, down from $1.1 billion U.S. or $1.10 per share. Net income before adjustments was $847 million or 85 cents per share.
Barrick’s results beat the consensus estimate of 85 cents per share or $852 million of adjusted earnings and 81 cents per share or $865 million of net income.
Its shares were up as it also plans to cut at least $500 million U.S. from spending on major projects this year and may sell non-core assets in response to lower prices and profit experienced in the first quarter.
Canadian Pacific reported quarterly net income of $217 million or $1.24 per share, while revenue was up nine per cent to a quarterly record of $1.495 billion.
The railway’s operating ratio, a key measure of efficiency, improved to 75.8%, which Canadian Pacific said was a record for the company.
CP chief executive Hunter Harrison, who was brought in last year, said he’s happy with the progress but not finished with transforming the company. Its stock lost early momentum and turned 19 cents lower to $126.04.
But CP’s stock has soared from its 52-week low of $71.61. Most of the gains have taken place since last September and expectations for CP are high.
The Barrick results helped push the gold sector up, as did rising gold prices. Goldcorp Inc. was up 90 cents to $29.34.
The metals and mining sector also advanced while May copper improved by six cents to $3.16 U.S. a pound.
Sherritt International Corp. posted a reduced first-quarter profit and a 20% decline in revenue from the same time last year. The diversified mining company had $23.1 million of net earnings, or eight cents per share, down from $32.4 million or 11 cents per share in the year-earlier quarter.
Revenue was $286.5 million, down from $359.4 million and its shares were eight cents lower to $4.37.
The energy sector gained as Cenovus Energy Inc. reported a first-quarter profit of $171 million as it was hit by unrealized hedging and foreign exchange losses. Its shares gained 35 cents to $29.10.
The company said the profit amounted to 23 cents per share for the quarter ended March 31 compared with 56 cents per share a year ago. Revenue was $4.32 billion, down from $4.69 billion.
No major Canadian economic data was scheduled for release.
ON BAYSTREET
The TSX Venture Exchange was positive 3.65 points to 944.60
All but one of the 14 Toronto subgroups were positive midday, led by a 4% surge in metals and mining issues, while gold jumped 3.4%, and global base metals racked up a gain of 3%.
Only health-care issues missed the party, falling 0.3%.
ON WALLSTREET
Stocks were still in the red Wednesday, a day after an erroneous tweet wreaked havoc on markets.
The Dow Jones Industrials broke for lunch off 30.49 points to 14,689.
The S&P 500 index recovered 1.09 points to 1,579.87. The tech-heavy NASDAQ Composite moved lower by 7.59 points to 3,261.75
Another batch of earnings gave investors pause.
Boeing was the biggest gainer on the Dow, after it reported an increase in profits, even as revenue was dinged by its grounded Dreamliners.
But AT&T and Procter & Gamble offset those gains. AT&T's sales came up short, while Procter & Gamble cut its guidance.
Apple beat expectations and announced it would raise its quarterly dividend and boost its stock buyback program. But the company still struggled with lower profits on the iPhone and iMac.
Ford also reported a jump in earnings, helped by sales in North America.
Shares of Juniper Networks' fell more than 7% after the company projected "continued weakness" in its earnings outlook late Tuesday.
Shares of Yum Brands jumped more than 6% after the fast-good restaurant operator reported earnings that topped Wall Street's low expectations.
Investors were also spooked by a report on durable goods orders that showed orders fell by 5.7% in March -- much worse than analysts had predicted.
Prices on the 10-year U.S. Treasury slipped, raising yields to 1.71% from Tuesday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil prices surged $1.76 to $90.94 U.S. a barrel.
Gold prices took on $16 to $1,424.80 U.S. an ounce
