The Toronto stock market was sharply higher Thursday and commodity prices advanced amid a surprise improvement in China's manufacturing sector.
The S&P/TSX Composite Index zoomed 98.33 points, off its highs of the morning, to greet noon at 12,584.97
The Canadian dollar slumped 0.59 cents to 96.73 cents U.S.
Traders also digested big losses handed in by two major gold miners and an announcement from TransCanada Corp that it is going ahead with its Energy East pipeline project to transport crude from western provinces as far east as Saint John, N.B..
TransCanada estimates the project will cost about $12 billion, excluding the value of its converted Canadian Mainline pipeline system between Alberta and Montreal. TransCanada shares were ahead 81 cents to $47.74.
In earnings news, Barrick Gold Corp. posted a $8.56-billion U.S. loss and lowered its quarterly dividend in the wake of lower prices for bullion and copper. Excluding unusual items, Barrick had adjusted earnings of $663 million U.S. or 66 cents in the quarter ended June 30 -- better than the analyst estimate but down from 82 cents per share last year and its shares jumped 67 cents to $17.67.
Kinross Gold Corp. reported a net loss of $3.2 billion for its latest quarter, as it was also hit with a substantial impairment charge related to lower gold price assumptions and suspended its dividend. The earnings amount to a loss of $2.81 per basic and diluted share, compared with a profit of 13 cents in the second quarter of 2012.
Adjusted earnings fell to 10 cents a share, beating analyst expectations of seven cents a share and its shares added three cents to $5.37.
Shares in transport giant Bombardier Inc. gained nine cents to $5.05 as it said it had adjusted net income totaling $158 million U.S. in the third quarter, equivalent to nine cents per share and in line with analyst estimates.
Bombardier's revenue was about $300 million U.S. higher than last year, rising to $4.4 billion U.S., slightly better than the estimate of $4.34 billion U.S., but the adjusted earnings were down slightly from the second quarter of 2012.
Imperial Oil Ltd. says its net income was $327 million in the second quarter, a decline from $635 million in the year-earlier period. The main reason cited by the company was a $264-million non-cash charge related to its conversion of a refinery in Dartmouth, N.S. into a fuels terminal.
Its net income per share was 38 cents, below analyst estimates of 85 cents. Adjusted earnings were 34 cents per share compared with an analyst estimate of $1 per share and its shares slipped 20 cents to $43.87.
The energy sector rose as Canadian Natural Resources rose 64 cents to $32.47.
The base metals sector climbed while copper added to Wednesday's eight-cent rise, up six cents to $3.18 U.S. a pound. Teck Resources advanced 45 cents to $24.51.
The Barrick and Kinross earnings helped push the gold sector ahead Centerra Gold was up 17 cents to $4.72.
Financials also boosted the TSX as CIBC climbed 80 cents to $78.73.
China's official purchasing managers’ index hit 50.3 last month. That is up only slightly from June's 50.1 reading but economists had expected a modest decline to below 50, the level which divides contraction and expansion.
However, analysts note that the index has held between 49 and 51 for the past 15 months.
In economic news, the July RBC Canadian Manufacturing PMI of 52.0 indicated business conditions continued to improve with the measure remaining above the 50 "no-change" level. However, this did represent a slight moderation in the pace of improvement given readings in June and May of 52.4 and 53.2, respectively.
ON BAYSTREET
The TSX Venture Exchange added 2.86 points to 920.20
All but four of the 14 Toronto subgroups were higher midday, led by health-care, gaining 2.8%, while energy stocks gushed 1.9%, and global base metals picked up 1.4%.
The four laggards were weighed mostly by gold, off 1.3%, materials, down 0.4%, and utilities, sliding 0.3%
ON WALLSTREET
The Dow and S&P 500 rallied to new highs straight out of the gate Thursday.
The Dow Jones Industrials remained positive 113.89 points to 15,613.40
The S&P 500 index spiked 17.18 points to 1,702.91, its first appearance above the 1,700 mark. The NASDAQ grew 36.27 points to 3,662.64
Procter & Gamble reported better-than-expected earnings and sales for its fiscal fourth quarter.
Exxon Mobil reported quarterly earnings that fell short of forecasts, citing weaker refining margins, while revenue topped estimates.
Royal Dutch Shell shares dropped after the company reported earnings and revenue that missed estimates. The company cited higher costs, exploration charges and challenges in Nigeria, where oil thefts and supply disruptions have hit Shell's bottom line.
Barrick Gold Corp. shares slipped after it booked a quarterly charge of $8.7 billion in the second quarter, driven by falling gold prices.
Shares of DirecTV fell after the satellite television provider posted earnings that widely missed forecasts. LinkedIn is due after the close.
Yelp shares jumped more than 20% after the online review site reported a smaller-than-expected quarterly loss late Wednesday.
Sony shares rose after the company reported first-quarter results showing a 13% jump in sales compared with the same quarter a year earlier. The revenue boost was largely the result of a weaker yen and stronger smartphone sales.
Shares of J C Penney rebounded following a 10% selloff Wednesday. The retailer issued a statement early Thursday disputing reports that CIT had cut off some of the credit to its suppliers due to concerns about Penney's ability to pay them. However, an analyst for Citigroup cut her recommendation on the stock to a sell from neutral.
Major automakers will also release their monthly sales results throughout the day.
Economically speaking, the U.S. Labor Department reported that the number of Americans filing first-time claims for unemployment benefits fell to a five-year low. That's good news ahead of the government's monthly jobs report on Friday.
The Institute for Supply Management also delivered positive news Thursday. The group's monthly manufacturing sentiment index rose to 55.4, the highest level in two years. Any number above 50 signals growth.
Investors were also calmed by indications that the U.S. Federal Reserve will not be too hasty when scaling down its massive bond-buying program.
Prices for the 10-year U.S. Treasury dipped, raising yields to 2.69% from Wednesday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices acquired $2.50 to $107.53 U.S. a barrel.
Gold prices added 80 cents to $1,313.80 U.S. an ounce.
