The Toronto stock market was higher Thursday amid solid earnings from Royal Bank and TD Bank, and Chinese manufacturing data.
The S&P/TSX composite index moved higher 91.57 points to greet noon at 14,741.43
The Canadian dollar took on 0.10 cents to 91.72 cents U.S.
Royal Bank's quarterly net earnings were up 15% from a year ago to $2.2 billion or $1.47 a share, helped along by record earnings in its wealth management segment. Cash diluted earnings per share were $1.49, beating estimates by five cents a share.
RBC's shares ran ahead $1.41 to $75.70.
TD shares gained $1.12 to $53.02 as the bank reported quarterly net income of $1.98 billion, up from $1.71 billion in the same quarter of 2013. Diluted earnings per share were $1.04 in the quarter, compared with 89 cents year-over-year.
Adjusted net income was up at $2.07 billion, or $1.09 diluted EPS, beating estimates by seven cents a share.
Sears Holdings Corp.'s first-quarter loss widened to $402 million U.S., or $3.79 per share, compared with a loss of $279 million a year ago. Excluding certain items, it lost $2.24 per share.
Revenue fell 7% to $7.88 billion amid its ongoing struggle to attract shoppers. Its shares fell back $1.59, or 4.4%,to $34.97.
Sears Holdings has said it's considering selling its 51% stake in Sears Canada
The base metals sector also supported the TSX, gaining as copper prices rose in the wake of the Chinese manufacturing data with the July contract up two cents to $3.14 U.S. a pound.
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 4.67 points to 978.78.
Of the 14 Toronto subgroups, all but three were positive by noon hour, led by financials, up 1.2%, metals and mining, gaining 1%, and global base metals, surging 0.8%
The three laggards were gold, down 0.2%, materials, down 0.1%, and information technology, sliding 0.03%.
ON WALLSTREET
Stocks were sluggish early Thursday, but the retail sector was warming up.
The Dow Jones Industrial Average moved higher 16.18 points, to 16,549.24.
The S&P 500 gained 5.80 points to 1,893.83, and the NASDAQ composite index took on 22.85 points to 4,154.39
Most of the action was in the retail sector, where a number of big names reported quarterly results.
Best Buy shares were volatile 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. The stock fell sharply ahead of the bell and looked set to tank today, but it bounced back in early trading and is currently up above 4%.
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. Shares fell 4%.
Shares of Dollar Tree jumped 7% after the discount retailer reported results that were better than expected.
Two more retailers, Gap and Aeropostale are due to report after the close Thursday, as is tech giant Hewlett-Packard
Big tobacco is having a big day. 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 lower, raising yields to 2.55% from Wednesday’s 2.54%. Treasury prices and yields move in opposite directions
Oil prices backtracked 19 cents to $103.88 U.S. a barrel.
Gold prices added $6.30 to $1,294.40 U.S. an ounce.
