RTTNews - Canadian stocks have rallied sharply in Thursday morning trading, erasing some of the recent weakness. Resource stocks have led the upward surge, as investors also mull over a slew of economic news.

The S&P/TSX Composite Index has jumped 207.69 points or 1.98% to move at 10,663.07. The market reached a 12-day low yesterday after hitting a 7 1/2-month high earlier in the week.

The Diversified Metals and Mining Index has surged 5.4% as copper is up 9.45 cents to $2.574. First Quantum (FM.TO) has jumped 10%, Inmet (IMN.TO) has added 6.1% and Teck Resources (TCK.B.TO) is up 6%.

Industrial stocks are up 3.3%. Canadian Pacific Railway (CP.TO) has soared 10.4% after the company announced that second quarter net income rose to $157 million from $155 million last year. Rival Canadian National Railway (CNR.TO) gained 3.4%.

Materials stocks are up 3.2% and gold stocks have gained 2.7% as the precious metal is up $8.20 to $935.30 on the Comex. Goldcorp (G.TO) has added 2.5% after the company reported adjusted net earnings of US$0.14 per share, compared to US$0.12 per share a year earlier.

Agnico-Eagle Mines (AEM.TO) has rallied 6% after the company reported second-quarter net income of C$1.2 million or C$0.01 per share, compared to net income of C$8.3 million or C$0.06 per share in the same quarter last year.

OceanaGold (OGC.TO) has surged 11.4% after the company reported a second-quarter earnings of US$40.11 million or US$0.21 per share versus a loss of US$19.25 million or US$0.12 per share in the previous year.

Richmont Mines (RIC.TO) has dropped 8.3% after the company reported second quarter net loss of C$1.4 million, compared to a net earnings of C$0.04 million last year. Loss per share for the quarter was C$0.05. The company specified that the recent quarter loss was primarily due to lower gold sales and higher operating costs.

Energy stocks have climbed 2.4% as crude oil is up $2.83 to $66.18 per barrel. Suncor (SU.TO) has climbed 4.4%, Canadian Natural Resources (CNQ.TO) is up 2.7% and Canadian Oil Sands (COS.UN.TO) has gained 2.2%.

Petro-Canada (PCA.TO) has climbed 4% despite reporting second quarter net earnings of C$77 million or C$0.16 per share, compared to C$1.5 billion or C$3.10 per share last year.

In corporate news, Hemisphere GPS (HEM.TO) is down 5.2% after the company reported second quarter net loss of US$1.26 million or US$0.02 per share, compared to net income of US$3.17 million or US$0.06 per share last year.

Tembec (TMB.TO) is up 3.8% after revealing third quarter net loss of C$38 million or C$0.38 per share, compared to a net loss of C$27 million or C$0.27 per share in the same quarter last year.

In economic news, the Canadian Industrial Product Index rose 0.7% in June compared with May, while the Raw Materials Price Index increased 6.2%. Both gains were due to a strong increase in petroleum prices. This is according to data released Thursday by Statistics Canada.

The S&P/TSX Composite Index lost 115.21 points or 1.08% to settle at 10,455.33. The drop is the second in a row for Bay Street's main index, which had gained in nine of the previous 11 sessions.

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