Stocks in Canada were higher on Thursday as investors turned their attention to the banking sector and brushed off renewed worries about an economic recovery.
The S&P TSX Composite index gained 220.17 points at 10,921.49.
Financial stocks were in focus -- Canadian Western Bank said on Thursday its quarterly profit rose 9 percent as solid loan growth offset lower net interest margins. Edmonton, Alberta-based CWB reported net income of $28.7 million, or 38 cents a share, for the second quarter that ended July 31. That is up from $26.3 million, or 41 cents a share, a year earlier.
Also -- Laurentian Bank of Canada said on Thursday profit fell in its third quarter but revenue rose 3 percent and the earnings exceeded market expectations, sending shares higher. The Montreal-based regional bank reported net income of $28.7 million, or $1.08 a share, for the quarter, ended July 31. That's down from $30.9 million, or $1.17 cents a share, a year earlier.
In other corporate news, Reitmans Ltd. says its profit shrank 25 per cent to $26.4 million in the summer quarter as sales revenue slipped and overhead costs rose, primarily because of the reduced buying power of the Canadian dollar. Its shares fell 16 cents to $14.68.
Canadian tech company Wi-LAN Inc. reduced its loss to $1.3 million in the latest quarter, compared with a year-earlier net loss of $3.5 million. Revenue doubled to $9.6 million and its shares fell 11 cents to $2.21.
On the data front -- the national housing agency predicts housing starts will rebound in the second half, hitting 141,900 by the time the year is out. And Canada Mortgage and Housing Corp. says starts will increase to 150,300 in 2010.
Down south -- initial claims for jobless benefits fell 4,000 to 570,000 in the week ended Aug. 29, the Labor Department said in its weekly report. But in a sign that the jobless continue to struggle to find work, claims lasting more than one week rose 92,000 to 6,234,000.
The Canadian dollar, meanwhile, turned negative, up 0.012 of a cent to 90.67 cents US.
ON BAYSTREET
All sub-groups were in the green. Gold led the gainers, leaping 4.84 percent, followed by mining issues, up 3.79 percent and industrial stocks, which were ahead 3.13 percent.
The TSX Venture Exchange strode ahead 30.62 points to 1,215.51, while the Nasdaq index picked up 19.54 points to 752.05.
ON WALLSTREET
Wall Street staged a late-session rally Thursday, as investors piled into bank and technology shares following a three-day selloff on worries about the health of the economy.
The Dow Jones industrial average gained 63 points, or 0.7 percent, according to early tallies. The S&P 500 index added 8 points, or 0.9 percent. The Nasdaq composite rose 16 points, or 0.8 percent.
On the corporate front -- Costco said same-store sales fell 2 percent in August, vs. an expected decline of 5.7 percent. Net sales for the month were $5.4 billion, flat with a year earlier.
Target said sales fell 2.9 percent, versus analysts' bets that sales would drop 5.1 percent.
In other corporate news -- European antitrust regulators announced plans Thursday to investigate Oracle's $7 billion bid for computer maker Sun Microsystems, citing competition concerns.
Fannie Mae and Freddie Mac both surged after the New York Federal Reserve Bank said it bought $3.779 billion of U.S. agency debt, bringing its total to $122.4 billion in the last 9 months. The Fed has said it will buy $200 billion in debt from Fannie, Freddie and the Federal Loan Bank System as part of its efforts to keep mortgage rates low and help the economy recover.
And Google's YouTube may offer online movie rentals for a fee, according to several news reports.
U.S. light crude oil for October delivery fell 9 cents to settle at $67.96 a barrel on the New York Mercantile Exchange. Oil prices have been slipping since hitting a 10-month high just below $75 a barrel late last month.
COMEX gold for December delivery rose $19.20 to settle at $997.70 US an ounce, inching closer to the psychologically significant $1,000 level.
