Markets in Toronto higher open on Thursday, helped by signs of a delay in U.S. military action against Syria and stronger-than-expected results from some of Canada's biggest banks.
The S&P/TSX composite index jumped 45.85 points to begin Thursday at 12,653.07
The Canadian dollar faded 0.04 cents to 95.31 cents U.S.
Royal Bank of Canada reported a 3% rise in quarterly profit, topping analysts' estimates, as higher consumer loan volumes and wealth management fees more than offset a drop in fixed-income trading revenue. RBC shares took on 69 cents to $65.18
Toronto-Dominion Bank's quarterly profit fell 10%, as the lender took $418 million in insurance-related charges partly related to severe weather in Canada during the summer. TD shares gained $1.71 to open at $89.30
Canadian Imperial Bank of Commerce's third-quarter profit rose 6%, driven by stronger retail banking and wealth management income. CIBC shares $1.05 to $81.49
CIBC raised the rating on Capital Power Corporation to outperform from sector performer after the company reached an agreement to sell three New England facilities to Emera Inc. Capital shares improved 20 cents to $20.62
Barclays cut the target price on Emera Inc to $37 from $38 after the company announced that it will acquire 1,050MWs of Combined Cycle Gas Turbine plants in New England for $541 million U.S. from Capital Power Corp. Emera dipped 36 cents to $29.88.
Barclays raised the target price on National Bank of Canada to $84 from $78 after the bank reported better-than-expected third-quarter earnings. National shares gained $1.20 to $82.34.
On the economic slate, Statistics Canada reported this morning that its raw materials price index gained 4.2% last month, higher prices for crude oil the main reason.
The agency’s Industrial Product Price Index rose 0.3% in July, mainly because of higher prices for petroleum and coal products as well as motor vehicles and other transport equipment.
ON BAYSTREET
The TSX Venture Exchange opened Thursday up 7.71 points to 941.25
Eight of the 14 Toronto subgroups were higher, led by telecoms, up 1.8%, financials, ahead 1%, and information technology, gaining 0.6%.
The half-dozen laggards were weighed mostly by gold, down 0.3%, while energy and utilities skidded 0.2% each.
ON WALLSTREET
U.S. stocks advanced slightly as investors weighed stronger economic data against the prospect of the Federal Reserve scaling back its bond purchase program as soon as next month.
The Dow Jones Industrials moved higher 27.34 points to 14,851.80
The S&P 500 index gained 4.07 points to 1,639.03. The NASDAQ gained 23.78 points to 3,617.13
Investors are closely monitoring all economic news to anticipate when the Fed will begin curtailing its $85-billion-U.S. a-month bond-buying program. Signs of a strengthening economy support predictions that the Fed could start pulling back as soon as next month.
Meanwhile, investors were relieved that the prospect of an imminent U.S.-led military action against Syria appeared to be receding. Oil and gold prices were lower following big gains earlier this week due to fears of an escalation in the Syrian conflict.
Economically speaking, the U.S.’s second-quarter gross domestic product -- the broadest measure of economic growth -- rose at a 2.5% annualized pace, according to a revised estimate from the Bureau of Economic Analysis. That's up from a previous estimate of 1.7% and better than what economists were expecting.
A drop in jobless claims was another positive economic sign. Claims fell last week to 331,000, just slightly above what analysts were expecting.
Prices for the 10-year U.S. Treasury fell slightly, raising yields to 2.80% from Wednesday’s 2.78%. Treasury prices and yields move in opposite directions.
Oil prices sagged 80 cents to $109.30 U.S. a barrel.
Gold prices dropped $12.30 to $1,406.60 U.S. an ounce.
