Stocks in Canada’s biggest market opened higher on Thursday, helped by Chinese factory data. They also benefited from minutes from the recent Federal Reserve meeting that suggested the U.S. Central Bank will maintain some monetary support for the world's largest economy.
The S&P/TSX composite index gathered 34.27 points to begin Thursday at 14,684.13
The Canadian dollar took on 0.10 cents to 91.73 cents U.S.
Royal Bank of Canada reported a 15% rise in quarterly profit, driven by strong domestic lending volumes and capital markets revenue. RBC stock gained $1.32 to $75.61
Toronto-Dominion Bank said its quarterly profit rose 16% on the back of strong Canadian and U.S. retail lending. TD shares gained $1.12 to $53.02
Canaccord Genuity raised the target price on Altus Group to $24 from $23, with a buy rating. Altus Group shares added 31 cents to $21.15
China's factory sector turned in its best performance this year in May but still contracted for the fifth straight month.
On the domestic economic slate, Statistics Canada reported this morning that retail sales edged down 0.1% in March to $41.1 billion. Sales were lower at motor vehicle and parts dealers and clothing and clothing accessories stores.
However, the agency also says these declines were largely offset by gains at gasoline stations and food and beverage stores.
StatsCan also reported that 509,800 people received regular Employment Insurance benefits in March, little changed from February.
The nation’s number crunchers say the number of beneficiaries has been relatively stable since May 2013, following a long-term downward trend that began in the summer of 2009.
ON BAYSTREET
The TSX Venture Exchange grew 4.81 points to 978.92.
The 14 Toronto subgroups were evenly divided between gainers and losers, as financials shot up 0.9%, while global base metals and their cousins in metals and mining each moved up 0.6%.
The seven laggards were weighed mostly by information technology, down 0.6%, while energy and consumer staples slid 0.3% each.
ON WALLSTREET
With little news to move the market, investors were sitting on their hands early Thursday.
The Dow Jones Industrial Average moved higher, but only by 4.20 points, to 16,537.26.
The S&P 500 gained 2.17 points to 1,890.20, and the NASDAQ composite index took on 8.41 points to 4,139.95
While the broader market was at a stand still, shares of some well-known retailers were on the move.
Best Buy shares fell after the electronics retailer said sales at stores open at least a year fell in the first quarter and are likely to be down in the second and third quarter as well.
Sears Holdings, which operates the Kmart and Sears brands, said the pace of store closings picked up to 80 closings in the first quarter and that further store closings are possible the rest of this year. The stock was down about 1% on the news, which was widely expected.
Two more retailers, Gap and Aeropostale are due to report after the close Thursday, as is tech giant Hewlett-Packard
Shares of big tobacco companies were moving up.
Reynolds American and Lorillard are reportedly in talks to join forces and create the second largest U.S. tobacco company. Lorillard, which makes the e-cigarette blu, would give Reynolds access to the growing market for electronic cigarettes.
A deal could also benefit U.K.-based British American Tobacco, which owns a large stake in Reynolds.
Both Reynolds and Lorillard were down Thursday after big spikes at the end of the day yesterday.
McDonald's is also a focus point for investors and protesters Thursday as the fast-food operator holds its annual shareholder meeting in Oak Brook, Illinois. There's likely to be a lot of drama, although little movement in the stock.
Over 100 people were arrested outside the McDonald's corporate campus Wednesday as they protested for higher wages. There could be more arrests Thursday as protesters are promising to return.
In economic news, the government said first-time claims for unemployment benefits rose sharply in the week ended May 17.
Prices for 10-year U.S. Treasuries were static, keeping yields at Wednesday’s 2.54%.
Oil prices inched up five cents to $104.12 U.S. a barrel.
Gold prices added $10.00 to $1,298.10 U.S. an ounce.
