Commodities drive market gains
The Toronto stock market was higher Thursday amid rising commodity prices and positive U.S. economic data.
The S&P/TSX composite index gained 65.91 points to 12,674.73 while the TSX Venture Exchange was up 2.95 points to 1,233.15.
The Canadian dollar was up US0.04¢ to US101.45¢.
U.S. indexes shot ahead as weekly applications for unemployment benefits hit a five-year low and U.S. home construction surged last month.At the same time, there were earnings disappointments in the banking sector and further Dreamliner woes for aircraft maker Boeing Inc.
The Dow industrials j umped 84.79 points to 13,596.02, while the Nasdaq composite index gained 18.46 points to 3,136. The S&P 500 index rose 8.31 points to a fresh, five-year high of 1,480.94.
Builders broke ground on U.S. houses and apartments at a seasonally adjusted annual rate of 954,000 in December, up 12.1% from November. The report capped off the best year for U.S. home construction since the real estate meltdown.
“There is no denying that the housing market recovery is solidifying and we expect construction activity to ramp up to the one million annualized threshold by the end of this year,” said Toronto-Dominion Bank economist Michael Dolega, add- ing that the improvement in the housing sector is good news for the jobs picture.
Weekly unemployment benefit applications in the U.S. fell 37,000 to a seasonally adjusted 335,000. That’s comparable to numbers seen just after the recession began.
The weekly numbers are subject to a lot of seasonal volatility, but the overall trend suggested an improving landscape.
Boeing shares gained 1.2% following a string of losses even as U.S. and European authorities grounded the company’s 787 Dreamliner, its newest and most technologically advanced airliner, until the risk of battery fires is resolved. Boeing stock dropped 3.4% Wednesday.
On the earnings front, Bank of America Corp. shares were down 4.2% after it fell well short on revenue expectations.
Citigroup Inc. also registered a big earnings miss, with earnings per share of US69¢ ex-items against the US96¢ that analysts had expected and its shares were down 2.9%.
The tech sector was the leading advancer on the Toronto market, up 1.55% with CGI Group ahead 70¢ to $24.86.
Research In Motion Ltd. gained 13¢ to $14.68. Its stock has risen over 25% in the last week as investors anticipate the unveiling of RIM’s new BB10 product next Wednesday.