Canadian stocks rose for a third consecutive day on Thursday, the longest winning streak so far in 2016, as crude prices surged on a report OPEC and other producers will meet to discuss a potential output cut
The S&P/TSX composite index climbed 214.16 points, or 1.7%, to close Thursday at 12,591.93
The Canadian dollar jumped 0.22 cents to 71.17 cents U.S.
The star stock on the index included Canadian Natural Resources, which jumped $1.50, or 5.4% to $29.18, and Suncor Energy, which gained $1.42, or 4.5%, to $32.83. Pipeline operator Enbridge Inc advanced $1.06, or 2.3%, to $46.45.
Potash Corp. of Saskatchewan Inc. rose 28 cents, or 1.3% to $21.72, after the world’s largest fertilizer producer by market value cut its quarterly dividend for the first time since a 1989 initial public offering. The company forecast lower-than-expected earnings Thursday amid lower prices for crop nutrients.
Valeant Pharmaceuticals International Inc. lost $12.19, or 9.2%, for a second day of losses. The drugmaker on Jan. 25 released a memo written by Chief Executive Officer Michael Pearson that offered little on his current condition or the timing of his return to work after taking a medical leave of absence with severe pneumonia.
Shares of Bombardier, which closed below $1.00 on Wednesday for the first time since 1991, fell further on Thursday as some funds dumped shares on fears of the train and plane maker being ejected from Canada’s main index.
The stock was down a dime, or 10.1%, at 89 cents a share, with investors rattled by the possibility of Bombardier getting pushed off the
S&P/TSX composite index.
ON BAYSTREET
The TSX Venture Exchange moved up 2.58 points to 492.45
All but three of the 13 TSX subgroups were higher, as energy surged 5.3%, financials hiked 2.4%, and industrials moved upwards 2.1%.
The three laggards were health-care, down 5.2%, gold, sinking 1.8%, and materials, downward 0.7%.
ON WALLSTREET
U.S. stocks closed higher Thursday, as higher oil prices and gains in Facebook outweighed pressure from declines in biotech stocks and concerns about economic growth.
The Dow Jones industrial average surged 125.18 points to 16,069.64, as Caterpillar, Goldman Sachs and Chevron were among the top gainers in the index.
The S&P 500 pointed up 10.31 points to 1,893.26, as energy held more than 2.5% higher, while health care declined more than 2% as the only decliner in afternoon trade.
The NASDAQ index was positive 38.51 points to 4,506.68, as Facebook leaped 15.5% and Amazon gained 8.9% ahead of its earnings report. Apple closed up 0.7%.
Amazon.com, Microsoft, Visa and Electronic Arts are among companies due to report after the bell.
Celgene fell more than 5.5% in afternoon trade. The firm posted fourth-quarter earnings that fell short of analysts' estimates, hurt by higher costs. The company's net profit fell to $561 million U.S., or 69 cents per share, in the fourth quarter, from $613.9 million U.S., or 74 cents per share, a year earlier, Reuters reported. The firm's current quarter earnings guidance was slightly below expectations.
Eli Lilly also declined more than 5.5% in afternoon trade. The drug maker posted earnings in-line with estimates on revenue that beat.
Lilly said it is upbeat about this year's prospects based on a half dozen Food and Drug Administration approvals in 2015 and a number of successful late-stage trials.
In corporate news, Facebook reported earnings after the close Wednesday that blew past estimates, with the firm beating the $1-billion U.S. mark in quarterly net income for the first time ever.
Caterpillar reported adjusted fourth quarter profit of 74 cents U.S. per share, five cents above estimates, though revenue was light.
Caterpillar does see full-year 2016 profit above current Street estimates, as it benefits from cost controls and restructuring. Shares rose more than 4% in afternoon trade.
Economically speaking, durable goods fell 5.1% in December, far more than expectations for a less-than 1% decline. Ex-transportation, the figure declined 1.2%
Weekly jobless claims came in at 278,000.
Pending home sales rose just 0.1% in December from a downwardly revised November print.
Prices for the 10-year Treasury gained, lowering yields to 1.98% from Wednesday’s 2%. Treasury prices and yields move in opposite directions.
Oil prices improved $1.22 a barrel to $33.52 U.S.
Gold prices stumbled $10.89 to $1,114.08 U.S. an ounce.
