Stocks in Canada’s largest market perked in the first hour of trading Thursday, as investors watched for further clues from U.S. central bank chief Ben Bernanke's comments when he appears before the U.S. Senate Banking Committee later in the day.
The S&P/TSX Composite Index gained 85.33 points to start Thursday’s trading at 12,654.10
The Canadian dollar slipped 0.11 cents to 95.98 cents U.S.
Shoppers Drug Mart Corp, which has agreed to bought by grocer Loblaw Co Ltd, reported a slight increase in second-quarter profit, helped by stronger pharmacy sales. Shoppers shares gave back five cents to $60.20.
Biopharmaceutical whiz Transition Therapeutics said the U.S. Food and Drug Administration granted a fast-track status to its Alzheimer's drug. Transition shares zoomed higher $1.26, or 40.4%, to $4.38.
National Bank Financial cut the price target on Intact Financial to $71 from $72 on lowered earnings per share estimates to reflect catastrophe losses related to the recent floods in Alberta and Toronto. Intact shares added 34 cents soon after the opening to $59.43.
Raymond James cut the price target on Russel Metals to $26 from $29 on valuation. Russel shares began the day down 33 cents to $25.94.
Also, Raymond James raised the price target on West Fraser Timber to $110 from $105 as the company's second-quarter results beat market expectations. West Fraser shares spiked $4.25, or 4.9%, to $90.60.
On the economic slate, Statistics Canada reported that wholesale sales rose 2.3% to $50.3 billion in May, the largest rate of growth since the beginning of 2011, mostly due to higher sales in the agricultural supplies and food industries.
What’s more, the agency reported that those of us on regular Employment Insurance (EI) were fewer by 12,300, or 2.4%, to 508,500 in May. Compared with May 2012, the number of people receiving regular EI benefits was down 7.4%.
ON BAYSTREET
The TSX Venture Exchange recovered 1.59 points to 912.41
All 14 Toronto subgroups opened for business on the upside. Financials shot 1% higher, energy stocks were 0.8% more energetic, and utilities were 0.6% to the good.
ON WALLSTREET
Investors pushed the Dow Jones Industrials to a new trading high early Thursday as they wait for the latest missive from U.S. Federal Reserve chairman Ben Bernanke.
The Dow spiked 95.25 points to begin Thursday at 15,565.80
The S&P 500 index improved 8.08 points to 1,688.99. The NASDAQ Composite was up 9.92 points to 3,619.92
Shares of Morgan Stanley rose after the financial firm reported a quarterly profit in line with estimates, though revenue beat forecasts.
Verizon dipped after the company reported a 21% jump in quarterly net income compared with the year-earlier quarter.
Nokia's stock price dropped after the Finnish phone maker reported a 24% plunge in quarterly sales from a year earlier.
IBM shares rose after the tech stalwart said its net income for the second quarter rose 3% to $4.3 billion U.S., excluding special charges.
Late Wednesday, Intel reported second-quarter profits that fell 29% versus a year prior, sending shares lower. The company also said it expects revenue to be flat this year, after previously forecasting a modest increase.
Economically speaking, the U.S. government released its weekly report on initial jobless claims, which declined to 334,000 for the week ended July 13. Claims were expected to drop to 348,000, according to a consensus of economist forecasts.
Prices for the 10-year U.S. Treasury slid, upping yields to 2.51% from Wednesday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices gained 58 cents to $107.06 U.S. a barrel.
Gold prices gathered six dollars to $1,283.60 U.S. an ounce.
