The Toronto stock market was up sharply Thursday afternoon as investors took another run at a relief rally following the sharp selloff that launched the 2015 trading year.
The S&P/TSX composite index leaped 172.72 points, or 1.2%, to finish Thursday at 14,457.72
The Canadian dollar shed 0.06 cents to 84.47 cents U.S.
The TSX was higher for a second session after plunging almost 500 points in the first two days of this week, with energy stocks losing almost eight per cent in the first week of the year.
But other sectors have also been under pressure as investors assessed possible spinoff effects of a collapse in oil prices and also took some profits by selling off some of the best performers of last year.
Oil prices have tumbled more than 50% from June 2014 highs, partly because of demand concerns. But a global glut of supply has particularly depressed prices and the market has come around to the view that prices won't recover as fast as previously hoped.
Imperial Oil took on 72 cents, or 1.5%, to $48.11, while Suncor gained 70 cents, or 2%, to $35.98.
The base metals sector rose with March copper up a penny at $2.77 U.S. a pound. Teck Resources acquired 71 cents, or 4.6%, to $16.27.
The health-care segment was ahead as Valeant Pharmaceuticals International estimates 2015 cash earnings per share of between $10.10 U.S. and $10.40 U.S., up from an estimated $8.32 U.S. in 2014.
Cash flow from operations will be above $3.1 billion U.S., compared with about $2.5 billion U.S. in 2014. Analysts had estimated 2015 revenue of about $9.1 billion U.S. and $10.06 U.S. per share in earnings and Valeant shares jumped $10.64, or 6.2%, to $182.28.
The gold sector slipped while Goldcorp demurred 44 cents, or 1.9%, to $23.37, and Agnico-Eagle Mines lost 56 cents to $33.13
On the economic beat, Statistics Canada reported this morning that its New Housing Price Index rose 0.1% in November. Provincially, gains in Alberta and Ontario were offset by a decline in British Columbia.
ON BAYSTREET
The TSX Venture Exchange gained 3.83 points to 687.48
All but one of 14 Toronto subgroups were higher on the day, with health-care soaring 4.2%, metals and mining up 2.7%, and global base metals stronger by 2.1%.
Only gold missed the mark, sliding 2%.
ON WALLSTREET
U.S. stocks surged for a second day on Thursday, with benchmarks turning higher for the year, as oil steadied and on thinking the Federal Reserve and the European Central Bank would buttress the global economy.
The Dow Jones Industrials leaped 323.35 points, or 1.8%, to 17,907.87, with all 30 of its components advancing.
The S&P 500 added 36.24 points to 2,062.14, with all 10 of its major industry groups rising.
The NASDAQ index jumped 85.72 points to 4,736.19.
Costco Wholesale climbed after the warehouse retailer reported a better-than-expected increase in same-store sales last month.
Family Dollar Stores fell after the discount retailer reported quarterly earnings short of estimates, and J.C. Penney dropped after the retailer said it would close about 40 stores in the next year.
Comments late Wednesday by Fed Bank of Chicago President Charles Evans helped the bullish slant, with Evans saying he did not believe the central bank should be in a rush to hike interest rates.
Data Thursday had jobless claims dropping by 4,000 to 294,000 last week, with the better-than-expected number coming a day before the payrolls report for December.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.02% from Wednesday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices recovered 27 cents per barrel to $48.92 U.S.
Gold prices dipped $1.90 an ounce at $1,208.90 U.S.
