The Toronto stock market and the Canadian dollar were sharply higher Thursday after U.S. Federal Reserve chairman Ben Bernanke offered reassurances that stimulus measures aren't going away any time soon.
The S&P/TSX Composite Index soared 108.35 points, to break for lunch at 12,415.28, after Bernanke said in a speech after markets closed Wednesday that the U.S. economy still needs help from the central bank's low interest rate policies because unemployment remains high and inflation is below the Fed's target.
The Canadian dollar perked 0.67 cents to 96.23 cents U.S.
The gold sector advanced on Thursday, as Barrick Gold Corp. rose 74 cents to $15.43 while Goldcorp Inc. climbed $1.02 to $26.37.
The sector is the worst performer by far on the TSX but has come off the worst declines of the year recently.
The lower dollar also helped boost metal prices with September copper ahead eight cents to $3.17 U.S. a pound.
The lower U.S. dollar lifted commodities because a weaker greenback makes it less expensive for holders of other currencies to buy oil and metals, which are dollar-denominated.
The base metals component climbed while First Quantum Minerals advanced 55 cents to $16.23 and Teck Resources improved by $1.05 to $22.89.
The energy group was ahead as Cenovus Energy was up 51 cents to $32.17 while Canadian Natural Resources advanced 63 cents to $33.30.
Financials rose as Bank of Montreal climbed 53 cents to $62.73.
Telecoms were also supportive as Telus Corp. gained 39 cents to $31.83.
On the earnings front, Quebec-based cable company Cogeco Cable, reported its third-quarter revenue increased 45.3% to $464.5 million from $319.8 million in the same 2012 period.
Profit declined fractionally to $53.05 million, or $1.08 per diluted share, from $53.12 million or $1.09 per share in the prior-year period and its shares gained $2.676 to $49.20.
Corus Entertainment Inc. said that its quarterly net income was $89.9 million or $1.07 per diluted share, up from $43.2 million or 51 cents a year ago, largely as a result of a gain from the sale of its non-controlling interest in Food Network Canada for $55.4 million.
Ex-items, earnings were $34.5 million or 41 cents per share, down from $43.2 million or 52 cents a year earlier. Revenue was $200.1 million, down from $204.1 million. Corus also reduced its full-year guidance on profit and its shares fell $1.47, or 5.9%, to $23.28.
About half of the Federal's policymakers felt the U.S. central bank's bond-buying stimulus should be brought to a halt by year end when they met in June, but many wanted reassurance the U.S. jobs recovery was on solid ground before any policy retreat.
On the economic slate, Statistics Canada said its new housing price index kept its winning streak alive by rising 0.1% in May, following a 0.2% increase in April.
ON BAYSTREET
All but three of the 14 Toronto subgroups were higher midday, led by gold, zooming 4.7%, while the metals and mining and materials sectors each climbed 3.2%.
The three laggards were health-care and information technology, each down 0.1%, which consumer discretionaries inched down 0.02%.
ON WALLSTREET
U.S. stocks soared back into record territory Thursday, as investors welcomed comments from Federal Reserve chairman Ben Bernanke.
The Dow Jones Industrials grew 131.65 points to 15,423.30, topping 15,456 shortly after the opening bell. That put the blue-chip average above the record closing high it hit in May.
The S&P 500 index strengthen 16.42 points to 1,669.04, also topping its record closing high. The NASDAQ Composite increased 42.69 points to 3,563.45
Microsoft announced a widely-anticipated reorganization of its business operations, including a shakeup of high-level managers, according to various reports.
Shares of Yum! Brands rose after the restaurant operator reported earnings that beat expectations.
Quarterly results are coming up Friday from mega-banks JPMorgan and Wells Fargo.
Overall, earnings for companies in the S&P 500 are expected to grow 0.8% versus last year, according to FactSet.
In economic news, the number of Americans filing for first-time unemployment benefits rose to a two-month high, according to the government's weekly report. But economists were quick to brush off the rise as a result of volatile number-crunching, rather than a discouraging sign for the economy.
Prices for the 10-year U.S. Treasury hiked, dropping yields to 2.61% from Wednesday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.86 to $104.66 U.S. a barrel.
Gold prices gained $31.80 to $1,279.20 U.S. an ounce.
