Tsx moves higher on upbeaT reporTs
TORON TO • The Toronto stock market registered a strong gain Thursday amid signs of an improving Chinese economy and earnings reports from the resource sector that beat expectations.
The S&P/TSX composite index was ahead 81.43 points to 13,324.75.
The Canadian dollar was down 0.38¢ US95.92¢ after falling almost nine-tenths of a cent Wednesday after the Bank of Canada indicated that interest rates hikes are even further away than thought while revising downward its economic forecast through 2015.
New York markets were higher amid solid earnings from automaker Ford, with the Dow Jones industrials ahead 95.88 points to 15,509.21 while the Nasdaq gained 21.89 points to 3,928.96.
The S&P 500 index edged up 5.69 points to 1,752.07 as Ford earned an adjusted profit of 45¢ per share — a record for the third quarter — as sales rose 12% to US$36billion. Ford sold 1.5 million vehicles in the quarter, up 16%. Analysts had expected Ford to earn 37¢ per share and its stock rose 24¢ to $17.76.
Buyers were encouraged by an HSBC survey showing that China’s manufacturing activity was higher than expected in October.
HSBC’s main index rose to a sevenmonth high of 50.9 points from 50.2% in September — anything above 50 indicates expansion.
The consensus in markets had been for a more modest rise to 50.4.
The manufacturing data was released a day after markets were pressured by concerns over China’s banking sector — mainly due to a hot real estate market — that could prompt a tightening in monetary policy.
The gold sector led TSX advancers, up about 4.3% while December bullion rose $16.30 to US$1,350.30 an ounce.
Goldcorp Inc. helped power the component higher, advancing $1.19 to C$27.76 as the company posted net earnings of US$5million, down from US$498-million in the same period last year amid rising costs and lower prices. That amounted to a penny per share for Goldcorp shareholders, compared with 61¢ per share last year.
Teck Resources Ltd. shares were ahead $1.13 to C$30.54 as the miner reported a third-quarter adjusted profit of $252-million, or 44¢ per share, which was far better than analyst estimates but down sharply from the same time last year as prices for all of its principal products have fallen.
“In terms of results, I mean great in terms of beating expectations, but does that automatically guarantee that next quarter is going to beat the street and the quarter after that?” asked Gareth Watson, vice-president of investment management and research at Richardson GMP Ltd.
“Not necessarily because I think it needs to be taken in context of what’s going on in the global economy but I have a positive outlook for investing in 2014 when it comes to that global growth outlook.”
December crude on the New York Mercantile Exchange moved up 25¢ to US$97.11 a barrel after sliding $1.44 Wednesday on data showing a much higher than expected buildup in U.S. inventories last week. The energy sector was ahead 0.88%.