Markets surge on u.s. growth data

• The Toronto stock market racked up a solid gain Thursday amid data showing improving economic growth in the United States.

The S&P/TSX composite index ran ahead 92.06 points to 13,735.28.

But the market was held back by gold stocks that fell alongside bullion prices following the U.S. Federal Reserve’s latest tapering move and data showing U.S. economic growth came in at an annualized rate of 3.2%.

The data raised confidence that growth in 2014 could come in at 3% or better after growth for last year came in at only 1.3%.

“With the tailwinds that seem to be at the back of the U.S. from energy to manufacturing to housing … people have grown more comfortable with the potential for actual acceleration of growth in the U.S. to that 3% level,” said Mark Bayko, vicepresident and portfolio adviser at RBC Wealth Management.

The Canadian dollar gained 0.1 of a cent to US89.56¢.

New York’s Dow industrials rose 109.82 points to 15,848.61, the Nasdaq climbed 71.7 points to 4123.13 and the S&P 500 index was ahead 19.99 points to 1794.19.

The Fed moved Wednesday to cut its bond purchases by another US$10-billion to US$65-billion a month, the central bank’s second such move to cut back on the stimulus program that has keep longterm rates low.

Investors have also been focused on quarterly earnings and outlooks over the past couple of weeks on hopes that a strong corporate showing will help stocks. Last year, the Fed stimulus helped the S&P 500 charge ahead about 30%.

On Thursday, Potash Corp. of Saskatchewan shares lost 69¢ to C$34.89 as quarterly profit dropped 45% from a year ago to US$230 million or 26¢ a share, 5¢ less than expected. Revenue of US$1.54 billion beat expectations of $1.4 billion.

Imperial Oil’s profit amounted to $1.24 per share, well above analyst estimates of 89¢ per share under standard accounting but its shares headed 27¢ lower to $45.52.

In New York, Facebook jumped 14% as the social media company reported results Wednesday that exceeded expectations.

The industrials sector led TSX advancers, up 1.84% as Canadian National Railways ran ahead $1.26 to $59.34 ahead of earnings which were posted after the close. Net profits increased by 4% to $635 million or 76¢ per share. CN also upped its quarterly dividend by 16% to 25¢.

Financials ran up 0.7% as Manulife Financial gained 37¢ to $20.87 .

The energy sector was ahead 0.47% as the March oil contract on the New York Mercantile Exchange rose US87¢ to US$98.23 a barrel.

The gold sector fell about 2.43% as bullion lost US$20 to US$1,242.20 an ounce. Goldcorp fell 71¢ to $26.93.

Metal prices were lower with the March copper contract down US1¢ to US$3.23 a pound and the base-metals sector was down 1.02%. Teck Resources fell 53¢ to $27.21.