Stocks in Canada’s biggest market rose on Thursday in a broad but shallow bounce as steadying oil prices helped energy stocks, while drug maker Valeant Pharmaceuticals International Inc slumped on a report it is the target of a criminal probe.
The S&P/TSX Composite gained 55.09 points to greet noon at 14,830.13
The Canadian dollar gained 0.28 cents to 76.86 cents U.S.
Oil prices picked up after the International Energy Agency, which advises large developed countries on energy policy, predicted supply should tighten in the coming months after several years of overproduction.
Canadian Natural Resources added 0.8% to $41.16, pipeline operator Enbridge advanced 0.6% to $54.19, and Cenovus Energy Inc rose 1.3% to $18.99
The most influential drag on the index was Valeant, which fell 8.1% to $32.85. The Wall Street Journal reported the drug maker is the subject of a criminal probe over whether it hid from insurers its relationship with a specialty pharmacy.
Valeant stock surged 25% earlier this week after it unveiled a plan to raise billions from asset sales.
Industrials rose, with Canadian National Railway up 1% to $82.72.
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 9.37 points to 843.84
All but three of the 13 subgroups were positive midday, with energy ahead 1.7%, consumer discretionary stocks gaining 0.7%, and industrial stocks gaining 0.5%.
The three laggards were health-care, axed 4.2%, real-estate, fading 0.5%. and metals and mining, off 0.3%.
ON WALLSTREET
Stocks traded higher on Thursday as investors digested strong quarterly results from retail companies, economic data and rising oil prices.
The Dow Jones Industrials rocketed 120.60 points to 18,616.26, with Nike leading advancers and Wal-Mart and UnitedHealth Group the only decliners.
The S&P 500 recovered 10.29 points to 2,185.76, with energy rising more than 1%.
The NASDAQ Composite gained 24.11 points to 5,228.70, as Apple rose 0.6%.
Macy's reported fiscal-second quarter earnings and revenue that were above estimates, sending the stock surging nearly 18% in afternoon 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.
U.S. oil rose more than 3% on comments from the Saudi oil minister about possible action to stabilize prices and as the International Energy Agency forecast crude markets would tighten in the second half of 2016, a day after falling nearly 2.5% amid an unexpected build in inventories
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 1.54% from Wednesday’s 1.51%. Treasury prices and yields move in opposite directions.
Oil prices recouped $1.60 a barrel to $43.31 U.S.
Gold prices improved $1.70 to $1,353.60 U.S. an ounce.
