Buyers return to Toronto

Industrials lead TSX

Apr. 29, 2010 (Baystreet.ca) --

Bay Street stocks moved higher in mid-morning deals Thursday amid recovery in commodities prices and on hopes for a quicker resolution for the Greece sovereign debt crisis.

The S&P/TSX composite index leaped 134.13 points, or 1.1%, by noon to 12,211.02. The main index shed 1.67% in the past two sessions reversing from a fresh 18-month high hit on Monday, after the S&P's downgraded the debt ratings of Spain, Greece and Portugal.

Also encouraging earnings reports from major Canadian companies, including Potash Corp and Cenovus Energy helped lift sentiment.

In the energy space, Cenovus Energy gained 4.06% after reporting first-quarter net earnings of $0.70 per share, compared to $0.69 in the year-ago quarter. The company has declared a quarterly dividend of $0.20 per share.

Pacific Rubiales Energy rose 3.95%.

Imperial Oil edged up 0.96% after announcing improved first-quarter net income of $0.56 a share, compared to $0.33 a share for the same period last year.

In the gold space, Barrick Gold rose 2.56%.

Gold explorer Centerra Gold gathered 5.10% after it swung to profit in first quarter, reporting net earnings of $0.52 per share, compared to a net loss of $0.09 per share in the same quarter last year.

Gold miner Goldcorp slipped to loss in first-quarter, reporting net loss of $0.07 per share, compared to net income of $0.40 per share in the same quarter last year. Analysts were expecting the company to earn $0.25 per share for the quarter. The stock edged up 0.72%.

Among financial stocks, Scotiabank added 1.14% and National Bank of Canada gained 1.55%.

Fertilizer maker Potash Corp. was up 1.52%. The company reported improved first-quarter earnings of $1.47 per share, compared with $1.01 per share earned in the same period last year.

Analysts were expecting the company to record earnings of $1.32 per share for the quarter. For fiscal 2010, the company revised up its net income guidance to a range of $4.50 - $5.25 per share, from the earlier $4.00 to $5.00 per share.

Digital imaging products maker DALSA Corp. rallied nearly 26.42%. Yesterday, the company reported a threefold surge in its first quarter net income at $0.20 per share, up from $0.07 per share a year ago. Analysts were expecting the company to record earnings of $0.05 per share.

Meanwhile, Research In Motion was down 1.7% after Hewlett Packard yesterday announced a $1.2-billion U.S. deal to acquire Palm Inc., the ailing company that manufacturers smartphones.

Fuel cell products maker Ballard Power lost 2.42% even after reporting a narrower first-quarter net loss of $0.12 per share, compared to $0.23 per share in the year ago period.

Entertainment company IMAX Corp. lost 4.69%. The company swung to profit in the first quarter, reporting net earnings of $0.40 per share versus a loss of $0.06 per share last year. Analysts were expecting the company to report $0.37 per share for the quarter.

In economic news, Statistics Canada said today non-farm payroll employment edged up by 8,300 or 0.1% in February

The Canadian dollar regained 0.36 cents to 99.53 cents U.S.

ON BAYSTREET

All but three of the 14 TSX subgroups were higher by midday. Industrials flew 2.2% higher, while financials proved 1.7% richer and real-estate issues gained 1.6%.

The three laggards were metals and mining stocks, sliding 1%, utilities, sinking 0.2%, and global base metals, tailing off 0.1%.

The TSX Venture Exchange picked up 1.96 points to 1,662.31, while the Nasdaq Canada index slid 4.39 points to 788.20

ON WALLSTREET

In New York, equities jumped Thursday, with the blue-chip Dow index surging more than 100
points, as investors reacted to a jump in Exxon Mobil earnings and easing concerns about the debt problems in Europe.

The Dow Jones industrial average advanced 124.70 points, or 1.1%, by lunch time to 11,169.97.

The S&P 500 index picked up 15.07 points to 1,206.43. The Nasdaq composite index added 27.40 points to 2,499.13.

Gains were broad-based, with 26 of the 30 Dow components advancing. The tech sector got a boost after Hewlett-Packard said late Wednesday it will buy struggling smartphone maker Palm for $1.2 billion U.S., although HP's stock was down 0.8%.

On Tuesday, rating agency Standard and Poor's downgraded the sovereign debt ratings of Greece to junk status and lowered Portugal's investment grade status. But concerns about Greece have abated recently as European officials seem to be nearing agreement on a rescue package for the debt-stricken nation.

On Wednesday, the Dow rose back above 11,000 after the Federal Reserve left interest rates unchanged and said the economy is improving. The central bank's pledge to keep interest rates low helped investors turn their focus away from the debt issues in Europe.

Several big corporations reported their quarterly results before the opening bell Thursday.

Exxon Mobil reported a surge in earnings but still missed Wall Street expectations. The oil giant said earnings were $1.33 U.S. per share in the first quarter, which fell short of the $1.41 U.S. per share forecast by a consensus of analyst opinions from Thomson Reuters. The stock was up 0.3%.

Aetna managed to beat expectations when it reported operating earnings of 98 cents U.S. per share for the first quarter, compared to 96 cents U.S. in the prior year. Excluding certain charges, EPS was 77 cents U.S., the insurer said. Analysts had forecast EPS of 68 cents U.S.

Procter & Gamble reported a profit for its third quarter that managed to edge above expectations. The company reported earnings of 83 cents U.S. per share, which was slightly lower than its year-earlier EPS of 84 cents U.S. Analysts expected EPS of 82 cents U.S.

Viacom reported a surge in profit for the quarter, with diluted earnings of 40 cents U.S. per share. That was a 38% jump from 29 cents U.S. per share in the year-earlier quarter.

Economically speaking, the U.S. Senate officially started debate of Wall Street reform late Wednesday, after three days of standoff and three failed votes to move forward. Republicans waived their right to block the bill, after it became clear Democrats had clinched the 60 votes needed to end the filibuster.

The government released its weekly report on initial claims for unemployment benefits before the opening bell Thursday. The number of first-time filers fell 11,000 to 448,000 in the week ended April 24. Analysts expected a drop to 445,000 new claims.

At 10 a.m. ET, the House Financial Services committee began a hearing on potential implications of the Greece crisis.

At 2:30 p.m., Treasury Secretary Tim Geithner will testify before the Senate Financial Services Committee about holding banks accountable for their actions.

Treasury prices remained static at noon hour, keeping the yield on the 10-year note at Wednesday's 3.77%.

The price of a barrel of oil gained $1.89 to $85.08 U.S.

Gold prices faded six dollars to $1,166 U.S. an ounce.