The Toronto stock market advanced Thursday as traders were encouraged by a successful bond auction by debt-strapped Spain that raised €2.54 billion euros.
The S&P/TSX Composite Index approached noon Thursday up 55.51 points to 12,184.40
The Canadian dollar slipped 0.15 cents, to 100.75 cents U.S.
Worries about Spain have in recent weeks seen a flare-up in Europe's debt crisis. Analysts suggest those concerns about the heavily indebted country will continue to weigh on market sentiment.
The base metals sector led TSX gains, as copper prices shed early losses and were unchanged at $3.63 U.S. a pound. Lundin Mining was up 22 cents to $4.53 while First Quantum Minerals gained 68 cents to $21.55.
A slowing Chinese economy has helped push the price of the metal down almost 8% this month. China is the world's biggest consumer of the metal, viewed as an economic bellwether as it is used in a wide variety of industries.
In the gold sector, Goldcorp Inc. rose 51 cents to $41.02 while Kinross Gold Corp. ran up 12 cents to $9.24.
The energy sector was up with oil prices little changed after falling sharply Wednesday in the wake of data showing a much bigger than expected rise in U.S. crude inventories last week, suggesting flagging demand. Suncor Energy gained 38 cents to $31.62 and Cenovus Energy climbed 47 cents to $34.40.
The consumer staples sector was the weakest component with shares in Canada's largest convenience store chain, Quebec-based Alimentation Couche-Tard Inc., down 91 cents or 2.3% to $38.69. The stock had surged 15.45% Wednesday as the company said it was buying Statoil Fuel &
Retail, the top Scandinavian convenience and fuel retailer, for $2.8 billion.
In other corporate news, TransCanada has proposed a new route for the disputed Keystone XL oil pipeline through Nebraska that avoids the state's environmentally sensitive Sandhills region. U.S.
President Barack Obama blocked the pipeline earlier this year, citing uncertainty over the Nebraska route, which would travel above an aquifer that provides water to eight U.S. states. TransCanada shares were up 18 cents to $43.19.
On the economic slate, Statistics Canada told us this morning that the number of those receiving regular Employment Insurance benefits fell in February from the month before by 6,700, or 1.2%, to 552,800.
ON BAYSTREET
The TSX Venture Exchange slumped 4.66 points to 1,407.16, while the Nasdaq Canada index added 5.94 points to 417.27
All but three of the 14 Toronto subgroups were higher soon after the opening bell. Health-care issues led the pack, up 1.4%, followed by information technology, up 1.1%, and energy, better by 1%.
The three laggards were consumer staples, shedding 0.5%, utilities, off 0.2%, and consumer discretionaries, down 0.1%.
ON WALLSTREET
In New York, stocks wavered Thursday, as investors weighed a batch of weak U.S. economic data against a relatively successful bond auction in Spain and solid quarterly results from Bank of America and Morgan Stanley.
The Dow Jones Industrials fell back 34.69 points by midday to 12,998.08, off its lows of the day.
The S&P 500 fell 4.35 points to 1,380.79, and the Nasdaq gave back 4.19 points to 3,027.26
Investors continue to parse through corporate earnings.
Ahead of Thursday's open, Bank of America reported that its quarterly net income had declined sharply versus last year, though the drop came after an accounting adjustment of nearly $5 billion. After factoring out non-operating expenses, the company's earnings more than doubled from a year ago, sending shares higher.
Morgan Stanley, too, reported a large accounting adjustment that cut into its earnings. Excluding this expense, earnings and revenue were up versus last year, and shares moved higher.
Travelers shares rose after the insurance provider reported earnings that handily beat expectations.
After the closing bell on Wednesday, American Express, eBay and restaurant operator YUM! Brands released quarterly results that beat analysts' expectations. eBay shares jumped in early trading.
Nokia shares were down after the cell phone maker reported a steep first-quarter loss, struggling against strong competition in the mobile market. Verizon were up slightly after the company reported earnings and revenue in line with expectations.
After Thursday's close, Microsoft will report first-quarter earnings, which analysts expect will come in at 57 cents U.S. per share.
Overall, recent corporate earnings have come in better than expected. Of the 77 companies in the S&P 500 that had reported their quarterly results as of Wednesday evening, 63 beat expectations, while eight matched and only six have missed, according to experts.
Shares of luxury luggage maker Tumi soared 44% in their stock market debut, after pricing above the expected range in the company's initial public offering Wednesday.
Splunk shares also priced above range and were set to begin trading Thursday.
An auction of €2.5 billion of Spanish 10-year bonds drew strong demand early Thursday. But Spain released a relatively low volume of bonds, helping to ensure that solid demand.
After Thursday's close, Microsoft will report first-quarter earnings, which analysts expect to have come in at 57 cents U.S. per share
Overall, recent corporate earnings have come in better than expected. Of the 77 companies in the S&P 500 that had reported their quarterly results as of Wednesday evening, 63 beat expectations, while eight matched and only six have missed, according to experts.
Economically speaking, the U.S. government said first-time unemployment claims declined by 2,000 to 386,000 in the week ended April 14. Initial claims were expected to come in at 375,000, according to analysts surveyed by Briefing.com.
Existing home sales dipped 2.6%, a sign that the housing market recovery remains on shaky ground. The Philadelphia Fed regional manufacturing index also fell, coming in below expectations.
The price on the benchmark 10-year U.S. Treasury gained some ground, pushing the yield down to 1.96% from Wednesday's 1.98%. Treasury prices and yields move in opposite directions.
Oil for May delivery nipped ahead one cent to $102.68 U.S. a barrel.
Gold futures for April delivery rose $7.70 to $1,646.50 U.S. an ounce.
