The Toronto stock market was higher Thursday amid strong bank earnings and an easing of concerns over a U.S.-led military intervention in Syria.
The S&P/TSX composite index jumped 104.88 points to greet noon at 12,712.10
The Canadian dollar faded 0.38 cents to 94.97 cents U.S.
CIBC posted net earnings of $890 million or $2.16 per diluted share in the most recent period, up from $841 million or $2 a diluted share in the same period last year. Revenue rose to $3.26 billion from $3.15 billion.
Adjusted net income was $943 million or $2.29 per share diluted, 14 cents ahead of estimates and its shares gained $1.80 to $82.24.
Royal Bank shares rose 73 cents to $65.22 as the bank reported record net income of $2.3 billion for the third quarter, an increase of 3% from a year ago. Diluted earnings per share were $1.52, an increase of five cents from the third quarter of 2012. The bank also raised its dividend six per cent to 67 cents a share.
Profit was $1.48 a share ex-items, beating expectations of $1.38.
TD Bank's quarterly net income was $1.53 billion or $1.58 per diluted share, compared with $1.7 billion or $1.78 per share a year ago amid losses on the insurance side of the business. However, earnings ex-items were $1.65 a share against estimates of $1.55 a share and the bank increased its quarterly dividend by four cents, or 5%, to 85 cents per share.
TD shares advanced $1.49 to $89.30.
The telecom sector was the biggest gainer, with Telus Corp. ahead 79 cents to $33.07 and Rogers Communications rising $1.27 to $42.05.
Canadian telcos advanced as Britain's Vodafone PLC confirmed that it was talking to Verizon Communications about selling its 45% stake in Verizon Wireless. Analysts have suggested that Verizon wants to pay around $100 billion for Vodafone's stake although reports have said that Vodafone is pressing for as much as $130 billion.
That raised speculation Verizon would not be interested in entering the Canadian market with the possible purchase of at least one of the country's smaller wireless players. Verizon has said it has had discussions but called it just an exploratory exercise.
Resource sectors were in the red and oil prices declined after running up about $4 in the previous two sessions on supply disruption concerns.
The energy sector was down and Imperial Oil declined 28 cents to $44.52.
The gold sector fell as gold prices also started to back off following gains earlier in the week. Iamgold faded 12 cents to $6.34.
The base metals sector was down while September copper gave back five cents to $3.25 U.S. a pound. HudBay Minerals dropped 17 cents to $6.96.
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 broke for lunch ahead 4.71 points to 938.25
All but two of the 14 Toronto subgroups were in positive territory, led by telecoms, up 2.2%, health-care, up 1.6% and financials, growing 1.5%
The two laggards were utilities, down 0.3%, and energy, down 0.1%.
ON WALLSTREET
U.S. stocks advanced 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 74.33 points to 14,898.80
The S&P 500 index gained 10.41 points to 1,645.37. The NASDAQ gained 38.19 points to 3,631.54
Shares of Vodafone jumped after the British mobile phone company confirmed it was in talks to sell its 45% stake in Verizon Wireless to joint-venture partner Verizon Communications. Vodafone was the best-performing stock in the NASDAQ-100, while Verizon was the biggest winner in the Dow and S&P 500.
Shares of Guess climbed after the clothing retailer most famous for its jeans beat earnings forecasts and also raised its guidance for the year.
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 gained ground, lowering yields to Wednesday’s 2.78%. Treasury prices and yields move in opposite directions.
Oil prices lost 78 cents to $109.32 U.S. a barrel.
Gold prices dropped $12.60 to $1,406.20 U.S. an ounce.
