The doldrums may be over for stock markets that have been pummeled by lowering oil prices all week – at least for now.
The S&P/TSX composite index recovered Thursday from Wednesday’s steep dive of 342 points to open the session higher by 60.25 to 13,913.20.
The Canadian dollar dumped 0.30 cents to 87.12 cents U.S.
Wednesday’s sharp drop left the TSX down 12% from its 2014 highs racked up in mid-summer and now is a bare 230 points, or 1.7%, above where it started the year.
A drop of 10% or more from recent highs is considered a correction.
Many energy companies have been reacting to sharply lower oil prices by cutting their capital spending estimates. Cenovus Energy joined that group Thursday as the company announced it is cutting 2015 capital spending to between $2.5 billion and $2.7 billion, down about 15% from 2014 levels.
Cenovus shares dipped 20 cents to $20.90.
Travel company Transat A.T. Inc. reported quarterly net income of $30.6 million, down 44% from a year earlier. Adjusted earnings dropped to $49.4 million or $1.27 per share from $54.8 million or $1.40 per share. Revenue was $844.7 million, up 4.5% from $808.6 million a year ago.
Transat shares gained 16 cents to $9.50.
On the economic calendar, Statistics Canada's New Housing Price Index rose 0.1% in October, following an identical increase in September.
ON BAYSTREET
The TSX Venture Exchange was still negative 0.16 points to 667.65
Of the 14 Toronto subgroups, eight were higher out of the gate, as energy led the parade, up 1.4%, industrials tacked on 1%, and health-care tallied 0.7%
The half-dozen laggards were weighed by gold, off 1.3%, materials, sliding 0.6%, and global base metals, dipping 0.5%
ON WALLSTREET
U.S. stocks rose on Thursday after the prior day's drubbing, as investors embraced data that had retail sales climbing in November and jobless claims falling last week.
The Dow Jones Industrials recovered 160.74 points to 17,693.89, with Exxon Mobil leading blue-chip gains that included all but one of 30 components.
The S&P 500 regained 21.23 points to 2,047.37, with energy the best performing of its 10 major industry groups, all of which advanced.
The NASDAQ index recouped 54.68 points to 4,738.71.
Figures from the Commerce Department had retail sales rising 0.7% last month, the largest increase in eight months.
After the stronger-than-expected retail report, the National Retail Federation told reporters its forecast "is right on track" for a 4.1% sales growth this holiday season.
Separately, the U.S. Labor Department reported fewer Americans filed unemployment claims last week.
Prices for 10-year U.S. Treasuries slipped, lifting yields to 2.19% from Wednesday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices took off nine cents per barrel to $60.85 U.S.
Gold prices fell $11.40 an ounce at $1,218.00 U.S.
