Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Jan. 2, 2015.Jin Lee/Bloomberg
The Toronto stock market was positive Thursday amid hopes that U.S. interest rate hikes are still a ways off and optimism for strong American jobs data on Friday.
The S&P/TSX composite index gained 190.8 points to 14,475.8.
The Canadian dollar edged 0.08 of a cent lower to 84.52 cents (U.S.).
U.S. indexes were sharply higher with the Dow Jones industrials surging 207.4 points to 17,791.92, the Nasdaq climbed 53.33 points to 4,703.8 while the S&P 500 index was ahead 22.28 points to 2,048.18.
Investors were relieved as minutes from the Federal Reserve's last meeting reinforced expectations it won't raise interest rates until the middle of the year or later. But hopes that hikes are even further off grew after Federal Reserve Bank of Chicago President Charles Evans said the U.S. might not hit the Fed's target inflation rate until 2018. And he said in a speech late Wednesday that he doesn't advise a rate hike until 2016, partly because of weak economic performance elsewhere in the world.
And there was optimism ahead of the release Friday of the U.S. government's employment report for December after payroll firm ADP said Wednesday that the private sector created 241,000 jobs last month. Economists expect that a total of 240,000 jobs were created, down from 321,000 in November.
Canadian jobs data for December will also be released Friday.
Meanwhile, the TSX energy sector was up one per cent while oil prices were little changed after rising Wednesday in the wake of data showing an unexpected decline in crude oil inventories last week in the U.S. Oil in New York dipped six cents to $48.59 (U.S.) a barrel.
Oil prices have tumbled more than 50 per cent from June, 2014, highs partly because of demand concerns. But a global glut of supply has particularly depressed prices. Prices have skidded 34 per cent just since late November, when the Organization of Petroleum Exporting Countries opted to leave production levels unchanged and analysts have largely given up trying to call a bottom to oil prices.
The base metals sector rose 1.4 per cent with March copper ahead one cent to $2.77 a pound.
The health care segment was ahead 2.6 per cent as Valeant Pharmaceuticals International Inc. says it plans to focus on small to medium-sized acquisitions from privately owned companies in 2015 following an unsuccessful attempt to take over California-based Allergan. The company also estimates 2015 cash earnings per share of between $10.10 and $10.40 per share, up from an estimated $8.32 in 2014. Cash flow from operations will be above $3.1-billion, compared with about $2.5-billion in 2014. Analysts had estimated 2015 revenue of about $9.1-billion and $10.06 per share in earnings and Valeant shares jumped $13.43 or 7.8 per cent to $185.07.
The gold sector was ahead 0.8 per cent while February gold rose $1.50 to $1,212.50 an ounce.
The only decliner was consumer staples, down a slight 0.05 per cent as Quebec-based pharmacy company Jean Coutu Group posted quarterly net income of $56-million (Canadian), down from $62.5-million a year ago as increased expenses offset sales growth, while net profit per share was flat at 30 cents. The profit fell two cents short of analyst estimates of 32 cents per share, while revenue was up 3.4 per cent to $736.7-million, which beat forecasts. Its shares were down $1.40 or 5.1 per cent to $25.98.