Strong corporate earnings and a major real estate deal for retailer Hudson's Bay sent the Toronto stock market higher on Wednesday.
The S&P/TSX composite index strengthened 63.60 points to close trading Wednesday at 15,228.57
The Canadian dollar gained 0.41 cents to 80.48 cents U.S.
Shares in Hudson's Bay Co. soared $4.40, or 19.8%, to $26.59 after the company announced it was joining with two major real estate trusts -- Toronto-based RioCan and Indianapolis-based Simon Property Group-- to create two real estate joint ventures.
HBC estimates it will get $1.1 billion in cash from the transactions over time.
Meanwhile, Royal Bank posted a quarterly profit of $2.456 billion, up 17% from a year ago and raised its quarterly dividend by two cents to 77 cents per share. Its shares advanced $2.61, or 3.5%, to $77.66.
The consumer discretionary sector was the leading TSX advancer, as auto parts giant Magna International earned $509 million or $2.44 a share, up 11% from a year ago.
Sales rose about 2% to $9.39 billion. Analysts had expected a profit of $2.24 per share and revenue of $9.08 billion. Magna also cut its revenue forecast for 2015, hurt by weak demand from Europe.
Along with the financial results, Magna announced a two-for-one stock split and hiked its quarterly dividend by 16% to 44 cents per share from 38 cents. Its shares jumped $9.27, or 7.3%, to $136.95.
The gold sector was ahead as Barrick Gold took on 16 cents to $15.86
The energy sector turned positive. Encana is cutting its 2015 capital budget to between $2 billion and $2.2 billion, down about $700 million. Encana joins a host of other energy companies that have been forced to chop spending in response to a 40% slide in oil prices since the end of November.
Encana's operating profit, which excludes extraordinary items, came in at $35 million, or five cents per share, for the quarter. Encana shares were 22 cents higher at $16.50.
The March copper contract edged two cents higher to $2.66 U.S. and the base metals group also moved into the positive column. Teck Resources forged higher by 11 cents to $19.32.
ON BAYSTREET
The TSX Venture Exchange improved 7.43 points to 699.49.
Nine of the 14 Toronto subgroups were positive, as consumer discretionary issues up 2%, financials, better 1.3%, and gold, shinier 1.2%
The five laggards were weighed most by global base metals, down 1.5%, health-care, down 1.4%, and consumer staples, off 1.3%.
ON WALLSTREET
U.S. stocks closed narrowly mixed on Wednesday after struggling to stay positive amid firming oil prices, moderate housing data and some debate over Fed Chair Janet Yellen's congressional testimony.
The Dow Jones Industrials moved higher 15.38 points to 18,224.57, with McDonald's leading blue chips and UnitedHealth the greatest laggard.
The S&P 500 settled 1.62 points to 2,113.86, with consumer discretionary leading three sectors higher and utilities the greatest laggard.
The NASDAQ index listed lower 0.98 points to 4,967.14, as Apple traded lower, off highs of $133.00 U.S. a share.
Hewlett-Packard reported adjusted earnings of 92 cents U.S. per share, a penny above estimates. However, revenue was below forecasts, and HP gave lighter than expected guidance due to significant negative impact from a stronger dollar
Target posted earnings and revenue that topped Wall Street expectations Wednesday, sending shares higher.
Campbell Soup matched estimates with adjusted quarterly profit of 66 cents U.S. per share, while revenue was above analyst forecasts. The company did say its gross margins were disappointing and below its expectations.
Dollar Tree earned an adjusted $1.16 U.S. per share for its latest quarter, beating estimates by one cent, with revenue also above consensus. Comparable store sales were up 5.6% during the quarter.
Lowe's posted quarterly earnings and revenue that topped Wall Street expectations Wednesday, sending shares higher.
The company posted earnings of 46 cents U.S. a share on revenue of $12.54 billion U.S.
Avago Technologies, Victoria's Secret and Bath & Body Works owner L Brands, Salesforce.com and Workday are all due after the bell.
Yellen continued her testimony on Wednesday in front of the House Financial Services Committee.
New U.S. single-family home sales in January fell a less-than-expected 0.2% to 481,000 and supply rose to its highest level since 2010, hopeful signs for the sluggish housing market.
The U.S. Energy Information Administration reported that weekly crude inventories rose 8.4 million barrels, more than expected. The figures were in-line with Tuesday's American Petroleum Institute report of 8.9 million barrels.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 1.97% from Tuesday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil prices added $1.44 per barrel to $50.72 U.S.
Gold prices improved seven dollars an ounce to $1,204.30 U.S.
