People walk down Bay St in the financial district in Toronto, Thursday January 22, 2015.Mark Blinch/The Globe and Mail
Canadian stocks rallied a sixth day, for the highest closing level since September, as energy producers advanced after oil rebounded from the biggest one-day decline in two months.
Brookfield Asset Management Inc. gained 2.1 per cent after the company said it will increase its dividend and split its stock 3-for-2. Canadian Oil Sands Ltd. and Pengrowth Energy Corp. increased at least 3.5 per cent as oil rallied. Hudson's Bay Co. lost 3.4 per cent after two investors sold shares of the retailer.
The Standard & Poor's/TSX Composite Index climbed 112.71 points, or 0.7 percent, to 15,326.31. The equity gauge has advanced 2.8 per cent over six days and is up 4.7 per cent for the year.
The Canadian dollar was down 0.34 of a U.S. cent at 79.42 cents.
Suncor Energy Inc. increased 1.4 per cent and Canadian Natural Resources Ltd. rose 1.3 per cent as energy producers increased 1.4 per cent as a group, the most in the S&P/TSX. Nine of 10 industries in the benchmark Canadian equity gauge rose on trading volume 3.5 per cent lower than the 30-day average.
Crude futures climbed 0.7 per cent in New York following a 6.6-per-cent slump on Wednesday. Iran said it would only agree to curb its nuclear program if all trade restrictions are removed, while U.S. and EU officials have said the restrictions should be lifted gradually. The May crude contract was up 37 cents at $50.79 (U.S.) a barrel.
Concordia Healthcare Corp., the best-performing stock in the S&P/TSX this year, increased 7.1 per cent for a third day of gains, extending a record.
The company Wednesday closed a $368-million deal selling subscription receipts for shares, in part to fund its $1.2-billion proposed acquisition of assets from Covis Pharma Holdings Sarl. Chief Executive Officer Mark Thompson is seeking larger acquisitions and more assets in Europe.
Detour Gold Corp. retreated 4.3 per cent as gold for June delivery lost 0.8 per cent to $1,193.60 in New York, a one-week low on speculation the Federal Reserve is moving closer to raising interest rates. Policy makers with the central bank were split on a potential rate hike in June, according to the latest minutes.
Labrador Iron Ore Royalty Corp. slumped 6.7 per cent after Tony Robson, analyst at BMO Capital Markets, cut his rating for the stock to market perform, the equivalent of a hold, from outperform, or buy.
The June gold contract dropped $9.50 to $1,193.60 an ounce.
U.S. stocks closed higher on Thursday, with energy shares leading the advance as crude oil rebounded off a sharp decline, while investors bet that companies would top lowered expectations this earnings season.
The day's gains were broad, with eight of the S&P 500's ten industry sectors up on the day. The market extended its gains in afternoon trading, putting the S&P 500 about 1.3 per cent away from its record close.
Equities have struggled for direction of late, with investors seeing limited upside potential in equities, but also few alternatives for yield. Many investors are looking ahead to the first-quarter earnings season for market guidance.
Earnings for S&P 500 companies are seen falling 2.8 percent in the first quarter, according to Thomson Reuters data, compared with the rise of 5.3 per cent that had been forecast on Jan. 1. The drop in profits is largely related to strength in the dollar, which analysts said would not necessarily be a long-term detriment to stock prices.
"To the extent the dollar means companies are losing business, it's a problem, but if earnings are just being translated into a stronger dollar, that's less of a problem," said Jim McDonald, chief investment strategist at Northern Trust Asset Management in Chicago.
"An earnings recession is only a real problem for stocks if it is accompanied by an economic recession, which isn't the case here. We're positioned for an upside move as expectations have been lowered to the point where we're set up for a positive surprise."
Among early reporters, Alcoa Inc fell 3.3 per cent to $13.22 a day after it reported revenue that missed expectations. Bed Bath & Beyond, which also reported weaker-than-expected results late Wednesday, fell 5.4 per cent to $73.46.
The energy sector climbed 1.5 per cent on the back of a 1.8-per-cent rise in Brent crude, which rebounded from a drop of 6 per cent on Wednesday. Continued uncertainty about an agreement on Iran's nuclear program also provided a lift. ConocoPhillips rose 3.4 per cent to $67.
In the latest economic data, jobless claims rose in the latest week, though the rise was smaller than anticipated.
The Dow Jones industrial average rose 56.22 points, or 0.31 per cent, to 17,958.73, the S&P 500 gained 9.29 points, or 0.45 per cent, to 2,091.19 and the Nasdaq Composite added 23.74 points, or 0.48 percent, to 4,974.57.
Declining issues outnumbered advancing ones on the NYSE by 1,513 to 1,506, for a 1.00-to-1 ratio on the downside; on the Nasdaq, 1,393 issues fell and 1,314 advanced for a 1.06-to-1 ratio favoring decliners.
The benchmark S&P 500 index was posting 13 new 52-week highs and 1 new lows; the Nasdaq Composite was recording 76 new highs and 29 new lows.
About 5.78 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.25 billion.
With files from Reuters and Bloomberg