The Toronto stock market racked up a solid gain Thursday morning on strong manufacturing data but was held back from bigger gains by earnings disappointments from two major Canadian corporations. The S&P/TSX composite index climbed 76.2 points to 12,114 while the TSX Venture Exchange gained 13.03 points to 1,589.58. The Institute for Supply Management said its U.S. manufacturing index for March came in at 59.6, better than the 57.5 reading that had been expected. Other manufacturing surveys for the eurozone, Britain and China also outperformed expectations — in the case of the eurozone, manufacturing activity was at a 40-month high in March. The reports suggested international trade was on the mend and contributed to a growing belief the global economy can avoid slipping back into recession. But Research In Motion Ltd. (TSX:RIM) shares fell $3.79 to $71.46 after the BlackBerry maker missed expectations. RIM earned US$710.1 million or $1.27 per share for the quarter ended Feb. 27 compared with a profit of $518.3 million or 90 cents per diluted share a year ago. Revenue in what was the company’s fourth quarter totalled $4.08 billion, up from $3.46 billion. Analysts had expected earnings of $1.28 per share and revenue of $4.31 billion. Also, the stock was downgraded by Goldman Sachs from neutral to sell with a US$65 price target. It also said that estimates could trend lower because of lower pricing. The TSX was also pressured by transportation giant Bombardier Inc. (TSX:BBD.B) after the company reported its net income fell to US$179 million in the latest quarter from $312 million a year earlier. The fourth-quarter profit amounted to 10 cents per share — a penny below analyst estimates. Revenue of $5.35 billion, down slightly from a year ago, met estimates and its shares were up about two per cent in New York. Its shares fell 19 cents to $6.04. The Canadian dollar inched closer to parity with the U.S. dollar, up 0.62 of a cent to 99.06 cents US, its highest level since July, 2008. The Toronto energy sector ran up 1.88 per cent as oil prices extended a two-month rally to approach the US$85 a barrel level Thursday, with the May crude contract ahead $1.05 to US$84.81. Suncor Energy rose $1.01 to $34.04. Canadian Natural Resources Ltd. (TSX:CNQ) shares gained $2.31 to $77.48 after it said it plans to buy up to 2.5 per cent of its outstanding shares from public markets over the coming year. At current prices, the eligible shares are worth about $1 billion — although the company isn’t obliged to make any purchases if conditions aren’t right. Oil prices have jumped from $69 a barrel in early February on investor expectations that a gradual recovery in the U.S. economy this year will eventually boost crude consumption. So far, however, demand remains sluggish. The Energy Information Administration said crude inventories rose by 2.9 million barrels last week, slightly more than analysts expected. The base metals sector was up 2.1 per cent as May copper added two cents to US$3.58 a pound. Teck Resources (TSX:TCK.B) climbed 99 cents to $45.24 as subsidiary Teck Coal Ltd. reached a one year agreement with Canadian Pacific Railway Ltd. (TSX:CP) covering shipments from mines in southeastern British Columbia. Financial details and contract terms were not disclosed. Canadian Pacific was ahead 45 cents to $57.69. The TSX global gold index rose 2.3 per cent with the June bullion contract on the New York Mercantile Exchange ahead $11 to US$1,125.50 an ounce. Barrick Gold Corp. (TSX:ABX) was up 51 cents to $39.48 and Eldorado Gold (TSX:ELD) advanced 24 cents to $12.57. Telecom stocks also supported the TSX with Telus Corp. (TSX:T) ahead 52 cents to $38.32. New York markets were also boosted by positive employment news a day before the U.S. government releases it March non-farm payrolls report. The Labour Department said initial jobless insurance claims dipped last week to 439,000. Economists had forecast claims would drop to 440,000. The Dow Jones industrial average was 82.1 points higher to 10,938.7. The Nasdaq composite index rose 17.23 points to 2,415.19 while the S&P 500 index gained 9.55 points to 1,179. Markets closed lower on Wednesday amid a disappointing U.S. jobs survey from the private payrolls firm ADP, which suggested that official government figures Friday will come in below expectations Traditionally, the nonfarm payrolls data set the market tone for a week or two but this month’s figures will be released as many traders head off for the Easter break. All major stock indexes in Europe, Canada and the U.S. are closed for Good Friday. The consensus in the markets was for a net gain in payrolls of around 170,000 jobs in March, but economists expect considerable U.S. government hires for the census. That means investors were especially anxious to see how many jobs the private sector is creating. In other earnings news, Harry Winston Diamond Corp. (TSX:HW) reported a loss of US$3.4 million in its latest quarter as revenue grew more than 10 per cent. The diamond company, which keeps its books in U.S. dollars, said Wednesday it lost $3.4 million or four cents per diluted share for the quarter ended Jan. 31 compared with a loss of $73 million or $1.19 per share a year ago. Its shares were up 15 cents to $10.15. Earlier in Asia, Japan’s benchmark Nikkei 225 stock average gained 1.4 per cent while Hong Kong’s market index rose 1.4 per cent. London’s FTSE 100 index gained 0.91 per cent, Frankfurt’s DAX was up 1.14 per cent while the Paris CAC 40 rose 1.35 per cent.

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