The Toronto stock market was higher Thursday with lift coming from bank stocks even as TD Bank delivered quarterly earnings that narrowly missed expectations.
The S&P/TSX composite index was 41 points higher to 12,044.8, adding to the solid gains from the previous session that followed bullish manufacturing data in China and the United States. The TSX Venture Exchange gained 5.6 points to 1,523.23.
TD (TSX:TD) said its profits grew 29 per cent in the third quarter to $1.18 billion thanks to lower loan losses and strong earnings in its domestic retail business. However, on an adjusted basis, earnings per share were $1.43, falling a penny short of analyst expectations according to Thomson Reuters. But its stock advanced 24 cents to $72.36.
In other earnings news, Laurentian Bank (TSX:LB) reported that its net income increased by five per cent to $30.1 million in the third quarter as the Montreal-based bank’s revenues grew to $188.8 million. Its shares dropped 56 cents to $47.
Elsewhere in the sector, Bank of Montreal (TSX:BMO) rose 68 cents to $59.37.
The Canadian dollar slipped 0.05 of a cent to 95.01 cents US.
The gold sector was up 0.4 per cent as the December gold contract on the New York Mercantile Exchange moved up $3 to US$1,251.10 an ounce. Eldorado Gold Corp. (TSX:ELD) gained 21 cents to $20.42.
Consumer discretionary stocks were also higher with Gildan Activewear (TSX:GIL) ahead 37 cents to $29.33.
The energy sector faltered slightly as oil prices stepped back from a gain of almost US$2 in the previous session, dipping 35 cents to US$73.56 a barrel. Suncor Energy (TSX:SU) declined 11 cents to $33.62.
The base metals sector was flat with the December copper contract up two cents at US$3.49 on top of a three per cent runup on Wednesday. Lundin Mining (TSX:LUN) lost seven cents to $4.49 while Teck Resources (TSX:TCK.B) improved by 62 cents to $38.26.
U.S. markets were little changed amid a mixed bag of economic data.
New York’s Dow Jones industrial average moved down 4.6 points to 10,264.8.
The Nasdaq composite index was up 5.91 points to 2,182.75 while the S&P 500 index gained 3.2 points to 1,083.5.
The U.S. Labour Department said new claims for unemployment benefits fell by 6,000 to 472,000 last week. Economists were expecting slightly more claims.
The news came a day before the U.S. government releases its non-farm payrolls report for August.
Other data showed that the number of American buyers who signed contracts to purchase previously occupied homes increased in July but remained well below last year’s levels. The National Association of Realtors says its seasonally adjusted index rose 5.2 per cent from a month earlier to a reading of 79.4. Economists surveyed by Thomson Reuters had expected the index would fall to 74.9.
And orders to U.S. factories managed a slight 0.1 per cent gain in July as a surge in demand for commercial aircraft helped offset widespread weakness in other areas. Excluding transportation, orders were down 1.5 per cent, the biggest drop in this category in 16 months.
There was relief amid reports that many U.S. retailers reported surprisingly solid gains for August, helped by aggressive discounting, even as unusually hot weather and job worries kept a lid on back-to-school buying.
Costco Wholesale Corp. posted a robust gain Thursday, boosted by higher gas prices and improved international revenue. Limited Brands Inc. and Macy’s Inc. also had solid revenue increases.
But shoppers are still keeping to their lists, hurting a number of clothing stores such as Aeropostale Inc. and Gap Inc.
Target Corp.’s results came in below expectations.
In other corporate news, Harry Winston Diamond Corp. (TSX:HW) (NYSE:HWD) says it earned US$16.5 million in its second quarter, reversing a year-ago loss as it enjoyed a significant jump in sales. Sales were up 62 per cent to US$153.7 million and the company’s shares were up $1.73 or 16 per cent to $12.48.
Shares in Research In Motion Ltd. (TSX:RIM) were off 14 cents to $46.34 after the chief of the United Nations’ telecommunications agency urged the BlackBerry manufacturer to allow foreign law enforcement agencies access to its customers’ data. A standoff between RIM and foreign governments over access to customers’ data has sunk the company’s share price per cent since the end of July.
Satellite company Com Dev International Ltd. (TSX:CDV) is replacing its chief executive John Keating, effective immediately. The move comes after the company’s recent warning of a looming loss and falling revenues. Its shares gained seven cents to $1.81.
Garda World Security Corp. (TSX:GW) shares gained 45 cents to 48.60 as it reported that its profit rose 31 per cent in the second quarter to $5.3 million. The Montreal-based company, which operates armoured trucks and provides cash logistics services to the banking industry along with security at airports and other locations, said earnings were equal to 17 cents per diluted share, two cents better than expectations.
Burger King Holdings Inc. is selling itself to private equity firm 3G Capital in a deal worth US$3.26 billion.
Earlier in Asia, Japan’s Nikkei 225 stock average gained 1.5 per cent, while Hong Kong’s Hang Seng index rose 1.2 per cent.
London’s FTSE 100 gained 0.18 per cent, Frankfurt’s DAX was up 0.11 per cent while the Paris CAC 40 was ahead 0.23 per cent.
