Strong earnings reports helped push the Toronto stock market higher Thursday afternoon.
The S&P/TSX index gained 58.35 points to end Thursday at 12,379.64
The Canadian dollar faded 0.22 cents to 98.98 cents U.S.
The financial sector was among the top TSX advancers, as Manulife Financial posted net income of $540 million or 28 cents a share, down sharply from $1.22 billion a year ago as insurance sales fell 23% to $619 million.
Core earnings for the quarter at Canada's largest life insurer were up 18% to $619 million, or 32 Canadian cents per share, which matched expectations. Its shares rose 57 cents to $15.33.
The consumer discretionary sector was ahead. Clothing manufacturer Gildan Activewear reported net earnings of $72.3 million U.S. or 59 cents per share on a diluted basis, exceeding its earlier guidance of 54 to 57 cents per share.
Net sales rose more than 8% to $503 million U.S. It also upgraded its outlook for the year and its shares rose 41 cents to $41.46.
In the consumer staples sector, the leading gainer, Loblaw Companies Ltd. stock gained $2.01 to $46.76 as it said it is going to include the structural integrity of buildings in audits of suppliers in the wake of the collapse of a building in Bangladesh that housed one of the company's suppliers.
More than 400 people were killed when the building collapsed last week. One of the factories in the building produced a small number of items for Loblaw's Joe Fresh clothing line.
Industrials also advanced with Canadian Pacific Railway ahead $3.48 to $126.64.
Commodity prices were higher after the weak economic data Wednesday pushed prices sharply lower.
The gold sector was higher while Barrick Gold ran ahead 36 cents to $19.71.
Goldcorp earned $309 million compared to $479 million in the first quarter of 2012. Adjusted net earnings totaled $253 million, or 31 cents per share, compared with $404 million or 50 cents per share a year ago. Revenues came in at $1 billion and Goldcorp shares faded 16 cents to $28.91.
The metals and mining sector turned positive, while July copper gained two cents to $3.10 U.S. after having tumbled 11 cents Wednesday.
HudBay Minerals Inc. added 18 cents to $7.92 after it said it had a profit of $1.9 million, or a penny per diluted share for the three-month period ended March 31, down from $3.4 million or three cents per diluted share a year earlier.
Elsewhere, SNC-Lavalin Group Inc. shares slipped $1.94 to $41.51 after posting a first-quarter profit of $53.6 million, down from $66 million a year ago. Revenue totaled $1.9 billion, up from $1.79 billion a year ago.
On the economic slate, figures released this morning by Statistics Canada revealed that Canada's merchandise exports increased 5.1% in March and imports rose 1.7%. As a result, Canada's trade balance went from a deficit of $1.2 billion in February to a surplus of $24 million in March.
ON BAYSTREET
The TSX Venture Exchange gained 0.87 points Thursday to 962.81
All but three of the 14 Toronto subgroups moved ahead, led by consumer staples, up 1.2%, while financials and consumer discretionaries were co-runners-up at 0.9% each.
The three laggards were health-care, down 1.2%, information technology, off 0.2%, and utilities, sliding 0.1%.
ON WALLSTREET
U.S. stocks rebounded Thursday, as a drop in jobless claims and the European Central Bank's interest rate cut fueled optimism on Wall Street.
The Dow Jones Industrials gained 130.63 points to 14,831.60
The S&P 500 index grew 14.89 to 1,597.59. The NASDAQ Composite gained 41.49 points to 3,340.62, to its highest level since November 2000.
General Motors shares jumped 3% after the automaker's earnings showed progress in stemming losses in Europe, where a worsening recession has resulted in the worst industry-wide auto sales on the continent in 20 years. GM CEO Dan Akerson pointed to cost-cutting measures and the successful introduction of new models for the improved performance.
In other earnings news, Yelp shares surged 27% after the review site reported a narrower loss and sales that topped estimates.
Facebook shares rose 5% after the company's sales jumped 38% in the first quarter, boosted by its growing mobile ad business. Facebook investors are laser-focused on mobile, which the social media company has said is the key to its future success.
After the closing bell, AIG reported a profit that topped forecasts. Shares of the insurer rose in extended trading. But shares of social media company
LinkedIn plunged after hours even though the company reported profits and sales that topped forecasts. Investors were disappointed by the company's guidance. Expectations were high. LinkedIn's stock hit a new peak in regular trading.
Shares of ING rose 7% on their first day of trading on the New York Stock Exchange. The U.S. arm of the Dutch bank raised $1.3 billion U.S. in its initial public offering, which priced below the expected range.
Intel said that Brian Krzanich, currently the chipmaker's chief operating officer, will become the company's new CEO on May 16.
Current CEO Paul Otellini announced in November that he would be stepping down this month after 38 years at the company, the final eight of which Otellini was at the helm.
Economically speaking, first-time claims for unemployment benefits fell to the lowest level since January 2008, surprising economists who were expecting an increase and possibly signaling improvement in the job market. The good news comes ahead of the government's key monthly jobs report due Friday.
Economists are expecting the report to show the economy added 140,000 jobs in April, up from 88,000 in March. They're expecting the unemployment rate to remain at 7.6%.
Prices on the 10-year U.S. Treasury gained a bit, lowering yields to 1.63% from Wednesday’s 1.64%. Treasury prices and yields move in opposite directions
Oil prices gained $2.97 to $94.01 U.S. a barrel.
Gold prices were hiked $20.30 at $1,466.50 U.S. an ounce
