Equities in Toronto rose on Thursday as a rebound in the price of oil lifted energy shares, but gains were limited as Valeant racked up heavy losses for the second day in a row after allegations the company was inflating its revenue.
The S&P/TSX composite index gained 120.42 points to greet noon at 13,824.61
The Canadian dollar gained 0.25 cents at 76.36 cents U.S.
Investors were also weighing the start of earnings reporting season with results from companies including Teck Resources and Rogers Communications.
Valeant Pharmaceuticals International was the biggest drag on the Toronto index, losing 13.9% to $132.72, making for a loss of about 30% over two sessions. An influential short-seller on Wednesday accused the company of using specialty pharmacies to inflate its revenue, which the drug maker denied.
But the energy sector helped keep Bay Street stocks in positive territory, rising as the price of oil recovered as investors re-thought data that showed falling stockpiles of fuel products.
Suncor, for example, shot higher 2.8% to $38.06.
Financial stocks also buoyed the market, as RBC gained 0.2% to $74.72.
Metals and mining stocks led the pack, as Teck Resources advanced 4.3% to $8.72. Excluding a non-cash writedown, the company reported earnings that were better than expected.
Shares of Rogers Communications rose to their highest level since April 2013 after the company reported a surprise jump in third-quarter profit. Rogers was up 3.1% at $51.20.
On the economic front, Statistics Canada reported that retail sales rose for the fourth consecutive month, advancing 0.5% to $43.6 billion in August.
The increase was led by higher sales at motor vehicle and parts dealers.
Excluding this sub-sector, retail sales were flat. Sales increased in four of 11 sub-sectors, representing 56% of retail trade.
Meanwhile, the number of recipients of employment insurance dropped in August, by 7,900 compared with July, down 1.4% to 536,800.
On a year-over-year basis, the number of EI beneficiaries increased by 35,600 or 7.1%.
ON BAYSTREET
The TSX Venture Exchange moved higher 3.59 points midday to 548.03
All but one of the 13 TSX subgroups remained higher, led by metals and mining, up 4.1%, gold, soaring 2.4%, and materials, ahead 2.2%
The lone laggard was still health-care, pummeled 4.4%.
ON WALLSTREET
U.S. stocks traded sharply higher on Thursday, as Wall Street digested the European Central Bank's rates decision, economic data and a fresh batch of earnings.
The Dow Jones industrial average skyrocketed 272.94 points, or 1.6%, to 17,441.55, with McDonald's leading advancers and American Express the greatest laggard.
The S&P 500 picked up 28.37 points, or 1.4%, to 2,047.31, with information technology leading nine sectors higher and health care lagging.
The NASDAQ index popped 69.45 points to 4,909.57
McDonald's posted earnings per share and revenue that beat expectations, sending the stock up about 7%, and accounting for about 50 points of the Dow's gains.
3M reported mixed earnings, while Caterpillar missed on both lines.
Companies scheduled to report after the bell include Amazon.com, Alphabet and Microsoft.
In corporate news, CIT Group said CEO John Thain will retire in March, and will be replaced by Ellen Alemany, a long-time banking executive.
Lululemon Chief Product Officer Tara Poseley is leaving the company after two years.
On the data front, investors digested weekly jobless claims and the Chicago Fed National Activity index.
Weekly jobless claims came in at 259,000, below the expected 265,000. The September Chicago Fed national activity index came in at -0.37, slightly higher than the -0.39 August reading.
The FHFA House Price index rose 0.3% in August.
Other economic data points included September existing home sales, which rose 4.7% to 5.55 million.
The ECB kept interest rates unchanged and ECB President Mario Draghi said "short-term inflation expectations have declined but more medium- to long-term inflation expectations, after some decline following our last meeting have now recovered and are basically unchanged since then."
Prices for 10-year U.S. Treasuries crept down, raising yields to 2.04% from Wednesday’s 2.03%. Treasury prices and yields move in
opposite directions.
Oil prices rebounded 29 cents a barrel to $45.49 U.S.
Gold prices gained 35 cents to $1,167.53 U.S. an ounce.
