RTTNews - Canadian stocks moved sharply higher and reached a 12-day intraday high, led by strength in the resource sectors. The market has followed the lead of U.S. stocks.
The S&P/TSX Composite Index has added 222.40 points or 2.22% to move at 10,208.42. The index seems destined for a third straight positive close.
Mining stocks are up 4.9% to lead the gainers as copper has jumped 7.5 cents to $2.374 per pound. First Quantum (FM.TO) has added 6.4%, Inmet (IMN.TO) is up 5% and Teck Resources (TCK.B.TO) has added 4.9%.
Materials stocks have added 2.9% and gold stocks are up 2.5% as the precious metal has gained $15.70 to $938.50 an ounce. NovaGold Resources (NG.TO) has added 3.8% after announcing its second-quarter loss narrowed to C$4.8 million or C$0.03 per share compared with C$23.2 million or C$0.22 per share in the prior year period.
Energy stocks have added 2.6% as crude oi is up 91 cents to $60.43 per barrel. Canadian Natural Resources (CNQ.TO) is up 3.15%, Suncor (SU.TO) has added 2.8% and Encana (ECA.TO) is up 2.2%.
On the corporate front, Corus Entertainment (CJR-B.TO) has dropped 6.9% after the company reported that its third-quarter net loss was C$145.0 million or C$1.81 per share, compared to net income of C$37.7 million or C$0.45 per share in the year ago quarter.
CVTech Group (CVT.TO) is up 2.1% after it said it has signed a share purchase agreement for the acquisition of Riggs Distler & Company, effective retroactively to July 1. The deal is worth approximately C$43.0 million.
DragonWave (DWI.TO) has surged 15.3% after the company reported a net loss for the first quarter of C$2.88 million or C$0.10 per share, compared to a net loss of C$1.94 million or C$0.07 per share in the year-ago quarter.
In economic news, Canadian manufacturing sales fell 6.0% to $38.4 billion in May, the lowest level since November 1998, according to data released Wednesday morning by Statistics Canada. Economists forecast a drop of 0.8%.
Meanwhile, the U.S. Labor Department revealed that consumer prices climbed 0.7 percent in June compared to the previous month. Economists had projected an advance of about 0.6 percent.
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