RTTNews - Bay Street stocks have moved notably higher on Thursday, boosted by strength in the resource sectors. The market had plunged to a two-month low on Wednesday
The S&P/TSX Composite Index has jumped 154.75 points or 1.6% to 9,808.20. The index is on target for its first positive close in four sessions.
Mining stocks have surged 5.6% as copper jumped more than 3% on the Comex. HudBay (HBM.TO) has rallied 8.75%, First Quantum (FM.TO) is up 6.7% and Teck Cominco (TCK.B.TO) has gained 4.9%.
Energy stocks have rallied 3.1% and recovered some of their recent losses. Canadian Natural Resources (CNQ.TO) has gained 4%, Suncor (SU.TO) is up 3.1% and Encana (ECA.TO) has gained 2.9%.
Materials stocks have risen 2.8% and gold stocks have climbed 2.3% as the precious metal has gained $6.90 to $916.20 per ounce. New Gold (NGD.TO) has added 5% and Iamgold (IMG.TO) is up 3.1% to lead the gainers.
On the corporate front, Velan (VLN.TO) has added 3.6% after the company posted first quarter net income of C$14.3 million or C$0.64 per share, compared to C$7.3 million or C$0.33 per share in the prior year period. Sales for the period were C$120.4 million, compared to C$139.4 million in the previous year period.
Richelieu Hardware Ltd. (RCH.TO) has lost 0.5% after the specialty hardware maker reported its second quarter net income declined to C$7.31 million or C$0.33 per share from C$9.1 million or C$0.40 per share in the prior-year quarter.
Research in Motion (RIM.TO) is up 1.9% after the stock was upgraded to Buy from Hold at Kaufman Bros.
Canadian Pacific (CP.TO) has slipped 2.3% after its target price was dropped to US$38 from $35 at RBC Capital Markets. The stock's rating was reiterated at Sector Perform.
Sandvine Corp. (SVC.TO) shares plummeted 12% after the company reported a wider second-quarter net loss of C$5.63 million or C$0.042 per share compared with C$4.63 million or C$0.034 per share in the year earlier period.
In economic news, Canadian housing starts increased to 140,700 units in June from 130,300 units in May, the Canada Mortgage and Housing Corporation reported. Economists were expecting housing starts to once again rise about 130,000 units.
A U.S. Labor Department report showed that jobless claims fell to 565,000 from the previous week's revised figure of 617,000. Economists had been expecting a more modest decrease to 603,000 from the 614,000 originally reported for the previous week.
Later, a Commerce Department report showed that wholesale inventories fell 0.8 percent in May following a revised 1.3 percent decrease in April. Economists had expected inventories to fall by 1.0 percent compared to the 1.4 drop originally reported for the previous month.
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