Equities in Canada’s largest market gained in early trade on Thursday, helped by rising energy and financial stocks as oil prices steadied, while Valeant Pharmaceuticals fell after the Wall Street Journal reported the drug maker is the subject of a criminal probe.
The S&P/TSX Composite regained 28.1 points to begin Thursday at 14,803.14
The Canadian dollar gained 0.18 cents to 76.76 cents U.S.
The Journal reported Wednesday that U.S. prosecutors have opened a criminal investigation into Valeant over whether it hid from insurers its relationship with a specialty pharmacy that helped boost its drug sales.
Valeant shares were rocked $2.58, or 7.2%, to $33.17.
Sun Life Financial reported on Wednesday a bigger-than-expected drop in underlying profit for the second quarter.
Sun Life backpedaled 44 cents, or 1.1%, to $41.58.
Canaccord Genuity cut the price target on Alamos Gold to $12.50 from $14.00.
Alamos shares were boosted 15 cents, or 1.3%, to $11.53.
Desjardins raised the rating on KP Tissue to buy from hold. KP shares took on 18 cents, or 1.5%, to $12.36.
On the economic beat, Statistics Canada reported that the new housing price index rose 0.1% in June, following a 0.7% increase in May.
The agency went on to say that the advance was driven mainly by new housing prices in Toronto and Oshawa and Vancouver, was moderated by decreases in Calgary and Edmonton.
ON BAYSTREET
The TSX Venture Exchange added 4.48 points to 838.95
All but four of the 13 subgroups were positive in the first hour, with consumer discretionary, energy and industrial stocks each gaining 0.6%.
The four laggards were weighed most by health-care, which were axed 2.3%, real-estate, fading 0.5%. and gold, off 0.2%.
ON WALLSTREET
U.S. stocks traded higher on Thursday as investors digested strong quarterly results from retail companies as well as economic data.
The Dow Jones Industrials reversed fortunes and gained 56.6 points to 18,552.26, with IBM contributing the most gains.
The S&P 500 recovered 4.36 points to 2,179.85, with consumer discretionary leading eight sectors higher
The NASDAQ Composite acquired 10.76 points to 5,215.35, as Apple picked up 0.8%.
Macy's reported fiscal-second quarter earnings and revenue that were above estimates, sending the stock surging nearly 15% in early trade. The department store giant also said it intends to close 100 locations.
Kohl's also posted quarterly results that were better than expected, and its stock spiked about 15% in early trade.
On the data front, U.S. import prices rose unexpectedly in July, according to U.S. Labor Department data released Thursday morning.
Import prices edged up 0.1% last month after an upwardly revised 0.6% increase in June. Economists had forecast import prices falling 0.3% in July after a previously reported 0.2% advance in June.
Meanwhile, weekly U.S. jobless claims fell slightly to 266,000.
Prices for the 10-year Treasury weakened, raising yields to 1.52% from Wednesday’s 1.51%. Treasury prices and yields move in opposite directions.
Oil prices recouped 53 cents a barrel to $42.24 U.S.
Gold prices improved 70 cents to $1,352.60 U.S. an ounce.
