The Toronto stock market was up slightly Thursday afternoon, on gains from positive earnings reports, while investors also bought into gold and energy stocks that have sold off recently.
The S&P/TSX composite index nosed ahead 15.12 points to conclude Thursday at 14,563.38
The Canadian dollar dipped 0.32 cents to 87.50 cents U.S.
Most of the buoyancy on the TSX came from the beaten up gold sector, which leaped, as Barrick Gold climbed 53 cents, or 4.2%, to $13.03.
Among the heavy slate of earnings news, Canadian Tire posted a 22% boost in its third-quarter profit to $178.2 million. Revenue increased to $3.07 billion versus $2.96 billion a year ago and the retailer also announced a 10-cent increase to annual dividend to $2.10 per share. Its shares recovered from time spent in negative territory to recapture 18 cents to $124.23.
Canadian Natural Resources shares gained $1.31, or 3.4%, to $39.57 as the energy company posted quarterly net income of $1.039 billion or 94 cents per share, compared with $1.168 billion, or $1.07 per share, a year ago. Cash flow was also down, at $2.44 billion from $2.45 billion a year ago.
Air Canada ran up 48 cents, or 5.4% to $9.38 as the carrier posted adjusted profit of $457 million or $1.55 a share, 11 cents higher than forecasts as the airline benefited from higher revenue and cost-savings initiatives.
Systemwide passenger revenue rose to $3.48 billion, up 9.4% from the same time last year.
Meanwhile, major job cuts are coming at SNC-Lavalin. The Montreal-based company plans to reduce its global workforce by 4,000, or 9% of the total, over 18 months starting in 2015, part of its ongoing efforts to get out of underperforming business segments. About three-quarters of the cuts will be outside of Canada. SNC shares fell $3.70, or 8%, to $42.50.
Investors were encouraged as the European Central Bank indicated a willingness to unveil more stimulus measures if needed.
On the economic front, Statistics Canada reported this morning that municipalities issued building permits worth $7.5 billion in September, up 12.7% from August, following a 27.3% decrease the previous month.
The agency attributes the September spike to higher construction intentions for both non-residential and residential buildings in Ontario.
Elsewhere, Western University said its purchasing managers’ index fell to 51.2 last month from a reading of 58.6 in September. Analysts had expected the index to decline to 57.0 in October.
The survey asks purchasing managers whether their buys increased, decreased or stayed the same during the month. A figure above 50.0 indicates industry expansion, below indicates contraction.
ON BAYSTREET
The TSX Venture Exchange regained 4.43 points to 751.54.
Nine of the 14 Toronto subgroups were positive on the day, as gold shone 5.4% brighter, materials improved 2.4%, and information technology clicked 1.6% higher.
The five laggards were weighed mostly by metals and mining, down 1.6%, telecoms, down 1.4%, and real-estate, sliding 1.2%.
ON WALLSTREET
After a somewhat shaky start to the session, the U.S. stock market limped higher, but still managed to reach record levels.
The Dow Jones Industrials gained 69.94 points to 17,554.47
The S&P 500 gained 7.64 points to 2,031.21. The NASDAQ index regained 17.75 points to 4,638.47
Tesla Motors gained after the electric-car maker forecast several years of substantial sales growth.
Genworth Financial tanked after its CEO apologized for the financial-services company's earnings miss.
Better-than-expected jobless claims data as well as productivity report aided sentiment.
In economic news, the number of Americans applying for new jobless benefits lingered below 300,000 for the eighth straight week amid the lowest level of layoffs in years. U.S. productivity in the third quarter grew at a 2% annual pace, preliminary data show, marking the fourth sizable increase in the past five quarters.
ECB President Mario Draghi reiterated that ECB policy makers are unanimously committed to using unconventional measures if needed to maintain price stability. In other words, the ECB could use outright QE, if deemed necessary.
Prices for 10-year U.S. Treasuries were lower, raising yields to 2.38% from Wednesday’s 2.35%. Treasury prices and yields move in opposite directions.
Oil prices dropped 74 cents to $77.94 U.S. a barrel.
Gold prices slipped $3.10 to $1,142.60 U.S. an ounce.
