RTTNews - Toronto's main index soared to a seven-month high on Thursday, led by resource stocks. Financials also enjoyed a strong day as several major banks reported earnings reports.
The S&P/TSX Composite Index rose 250.21 points or 2.46% to end at 10,392.37. This is the best close since early October.
Gold stocks jumped 4.1% and materials rose 2.8% as June gold finished up $8.20 at $961.50 per ounce. Agnico-Eagle Mines (AEM.TO) climbed 6.4% to lead the way, New Gold (NGD.TO) added 5.8%, Newmont (NEM.TO) rose 4.7% and Iamgold (IMG.TO) added 4.5%.
Energy stocks gained 3.55% as crude oil rose above $65 following Energy Information Administration inventory data. Of the big names, Canadian Natural Resources (CNQ.TO) has gained 4.5%, Suncor (SU.TO) added 4.4%, Canadian Oil Sands (COS.UN.TO) rose 4.3% and Encana (ECA.TO) increased 2.3%.
Mining stocks finished 3% higher as copper rose to $2.137 per pound on the Comex. Thompson Creek Metals (TCM.TO) added 3.4%, Teck Cominco (TCK.B.TO) rose 2.9% and HudBay (HBM.TO) rose 2.5%.
Financials gained 2.7% amid earnings reports from Scotiabank (BNS.TO), Toronto-Dominion (TD.TO), CIBC (CM.TO) and Royal Bank (RY.TO).
Toronto-Dominion (TD.TO) surged 6.7% after beating estimates in the second quarter. The company reported net income of C$577 million or C$0.68 per share, compared to C$841 million or C$1.12 per share in the year ago quarter.
CIBC (CM.TO) fell 4.5% after revealing a second quarter net loss of C$90 million or C$0.24, compared to a loss of C$1.41 billion or C$3.00 in the year ago quarter.
National Bank (NA.TO) added 3.6% after the company announced second quarter net income of C$261 million or C$1.53 compared to C$229 million or C$1.41 in the second quarter of 2008.
Bank of Nova Scotia (BNS.TO) ended up 0.4% after the lender said net income for the second quarter was C$821 million or C$0.81 per share, down from C$958 million or C$0.97 per share in the prior year quarter.
In other corporate news, the Globe and Mail reported Air Canada (AC.B.TO) could see its pension payment soar to $225 billion after an underpayment in the first quarter. Shares finished up 8.8%.
Descartes Systems Group (DSG.TO) surged 9% after the transportation supply company reported first quarter net income of US$2.21 million or US$0.04 per share, compared to US$1.05 million or US$0.02 per share in the same quarter of last year.
Garda World Security (GW.TO) climbed 6.1% after announcing first-quarter revenues rose to C$279.2 million from C$263.6 million in the same period last year. EPS fell to C$0.08 from C$0.14.
Nortel Networks Corp. (NT.TO) fell 2.3% after the telecom equipment giant said Wednesday that it will seek a buyer for its majority stake in LG-Nortel, the company's South Korean joint venture with LG Electronics.
General Motors Corp. (GM) will file for bankruptcy protection on June 1, according to reports from Bloomberg.
Earlier, the Globe and Mail reported Canadian governments may spend more than C$13 billion on bailouts of beleaguered automakers General Motors and Chrysler.
Meanwhile, the earnings for the average Canadian employee climbed 2.4% year-over-year in the month of March.
Across the border, a Commerce Department report showed April durable goods orders jumped 1.9% after a downwardly revised 2.1% drop in March. Economists had expected orders to edge up 0.5%.
On Friday, Royal Bank Of Canada (RY.TO) will become the last of the big six banks to report quarterly earnings. Heroux-Devtek (HRX.TO) is also expected to report results tomorrow morning.
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