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 52.43 points – off its highs of the day -- to close at 14,702.29
The Canadian dollar took on 0.16 cents to 91.80 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 $1.12 to $75.41.
For its part, TD shares gained $1.28 to $53.18 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, 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. Sears Holdings has said it's considering selling its 51% stake in Sears Canada, whose shares slumped 78 cents, or 5.1%, to $14.43 on the news.
The base metals sector also supported the TSX, 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. Teck Resources took on 21 cents to $24.92
The gold sector rose, as Barrick Gold shares backpedaled 25 cents to $18.07, and Goldcorp gave back 13 cents to $26.85
Among energy stocks, Imperial Oil gained 34 cents to $54.05, and Suncor shares faded four cents to $42.47.
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 4.66 points to 978.77.
Eight of the 14 Toronto subgroups were positive on the day, with metals and mining strengthening 1.3%, financials fatter by 1.1%, and global base metals 0.8% to the good.
The half-dozen laggards were weighed mostly by consumer staples, down 0.4%, gold, off 0.3%., and materials, sliding 0.2%.
ON WALLSTREET
After a sluggish start, stocks were firmly higher Thursday afternoon, with the S&P 500 in striking distance of a new high.
The Dow Jones Industrial Average inched higher 10.02 points to 16,543.08.
The S&P 500 gained 4.46 points to 1,892.49, and the NASDAQ composite index improved 22.80 points to 4,154.34
Retail stocks have been in focus this week, with quarterly reports from Target to Tiffany & Co. grabbing headlines.
On Thursday, Best Buy shares were up as much as 5% after the electronics retailer reported earnings that beat analysts' expectations, raising hopes the company's turnaround plan is bearing fruit. The stock was down sharply in the futures market before active trading started and has since pulled back to around 2% gains.
Dollar Tree also reported better-than-expected earnings, sending shares of the discount retailer up 7%.
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 were up 3%, reversing earlier losses.
House wares retailer Williams-Sonoma reported strong earnings and boosted its outlook for the coming months late Wednesday. The stock was up 7.5%.
It was the second quarter in a row that William-Sanoma beat expectations. Wednesday's report, coming on the heels of a strong quarter for Tiffany & Co., raised expectations for the luxury retail sector.
Shares of RetailMeNot, a provider of online coupons, sank 18% on a report that changes to a Google search algorithm caused a sharp drop in the company's online traffic.
Among big tobacco issues, 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.
Two more retailers, Gap and Aeropostale are due to report after the close Thursday, as is tech giant Hewlett-Packard
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 2.56% from Wednesday’s 2.54%. Treasury prices and yields move in opposite directions
Oil prices backtracked 21 cents to $103.86 U.S. a barrel.
Gold prices added $5.50 to $1,293.60 U.S. an ounce.
