The Toronto stock market was higher Thursday as solid labour data helped traders get used to the idea that the Federal Reserve may start cutting back on its monetary stimulus early in the new year.
The S&P/TSX composite index spiked 45.32 points to conclude Thursday at 13,475.33
The Canadian dollar tumbled 0.69 cents to 95.03 cents U.S.
The health-care sector led gainers, with Valeant Pharmaceutical up $2.89, or 2.6%, to $114.24.
The energy sector proved another leader, as Cenovus Energy rose 51 cents to $31.13.
The base metals sector was up with December copper up three cents to $3.19 U.S. a pound. Teck Resources discarded earlier gains, however, and ended unchanged at $26.80.
Industrials were ahead with Canadian Pacific Railway ahead $3.24, or 2.1%, to $157.07.
Telecoms were also positive with Telus ahead 27 cents to $37.34.
The gold sector led decliners, as Barrick Gold slipped 15 cents to $17.79.
Clothing maker Gildan Activewear Inc. fell $1.70, or 3.3%, to $49.60. The company, which reports in U.S. currency, estimated it will have between $3 and $3.10 per share of adjusted earnings and $2.35 billion of revenue for the year ending next September. Analysts had been expecting 2014 adjusted earnings would climb to $3.14 per share with $2.38 billion of revenue.
Gildan, which posted quarterly adjusted earnings that met estimates and revenue that beat, also said it is boosting its quarterly dividend by 20% to 10.8 cents per share.
On the economic slate, Statistics Canada declared that Canadians drawing employment insurance in September dipped by 7,100, or 1.4%, to 503,800.
Compared with September 2012, the number of beneficiaries was down 8.8%.
ON BAYSTREET
The TSX Venture Exchange grew 11.69 points to 926.71
All but two of the 14 TSX subgroups were higher, led by health-care issues, gaining 1.1%, while energy stocks popped 0.9% and industrials ticked 0.8% higher.
Only gold – which lost 0.8% -- and materials, down 0.4%, missed the party.
ON WALLSTREET
Stocks were higher Thursday, following three straight days in the red for the S&P 500 and NASDAQ.
The Dow Jones Industrials gained 109.17 points, to close at 16,010. The blue-chip index crossed the psychological milestone of 16,000 for the first time earlier this week, but had yet to close above it.
The S&P 500 index hiked 10.48 points to 1,795.85. The NASDAQ sprang up 47.88 points to 3,969.16.
Target shares slumped after the discount retailer reported lower-than-expected comparable same-store sales for the third quarter. Target blamed "an environment where consumer spending remains constrained" for the weakness, a troubling sign ahead of the key holiday shopping period. Target also trimmed its profit forecast for the year.
Dollar Tree shares also took a tumble after the discount retailer's earnings missed expectations. The company also lowered its guidance for the year.
Abercrombie & Fitch posted a quarterly loss and CEO Mike Jeffries said he expects weakness in revenue to continue into the fourth quarter. And Sears Holdings reported a deepening loss on poor sales.
Still, there was some good corporate news. Shares of Green Mountain Coffee Roasters soared following quarterly earnings that beat market expectations. The company also boosted its stock buyback and announced that it will begin to pay a dividend.
Meanwhile, the Senate Banking Committee approved Janet Yellen's nomination to become the first woman to lead the Federal Reserve Thursday morning.
Yellen is the current vice-chair of the Fed, has been nominated to chair the Fed after Ben Bernanke's term ends in early 2014. Her nomination now moves to the full Senate for a vote.
Prices for 10-year U.S. Treasuries gained back lost ground, lowering yields to 2.78% from Wednesday’s 2.79%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.33 at $95.18 U.S. a barrel.
Gold prices slumped $15.90 to $1,242.10 U.S. an ounce.
