By RTT News, October 24, 2013, 11:14:00 AM EDT
(RTTNews.com) - Canadian stocks were hovering in the green Thursday morning after a mixed mixed batch of corporate earnings reports, with commodities turning in a strong performance after China reported upbeat manufacturing data, easing worries over a slow down in the commodity hungry nation.
The S&P/TSX Composite Index rose 57.33 points or 0.43 percent to 13,300.65, a day after snapping its six-session winning streak.
The price of gold was moving higher Thursday morning with the US dollar trading lower versus a basket of currencies. The U.S. dollar was extending losses, dipping near a 11-month low versus the euro, sterling and the Swiss franc, while trading weak against the yen. Gold for Dec ember added $13.10 to $1,347.10 an ounce.
Agnico-Eagle Mines (AEM.TO) surged over 16 percent after posting strong third quarter earnings and revising upwardly its 2013 earnings guidance on record quarterly gold production.
Goldcorp. (G.TO) added about 4 percent after reporting third quarter adjusted net earnings of $190 million or $0.23 per basic share compared to $441 million or $0.54 per basic share in the third quarter of 2012. Analysts expected the company to report earnings of $0.20 per share for the quarter.
Alamos Gold (AGI.TO), Royal Gold (RGL.TO) and Barrick Gold (ABX.TO) added around 3 percent each. Detour Gold (DGC.TO) gained over 4 percent.
Base-metals miner Teck Resources (TCK_B.TO) gained nearly 4 percent after posting higher third-quarter profit of C$267 million or C$0.46 per share versus C$256 million or C$0.44 per share a year before. However, adjusted profit totaled C$252 million or C$0.44 per share in the recent quarter, down sharply compared with last year's C$425 million or C$0.73 per share.
The price of crude oil was ticking lower Thursday morning even after China reported upbeat manufacturing data. China's manufacturing growth hit a seven-month high in October, adding to evidence that the recovery is gaining strength after the slowdown witnessed in the first half of the year. The flash manufacturing Purchasing Managers' Index rose more-than-expected to 50.9 in October from 50.2 in September, a survey conducted by HSBC and Markit Economics between October 11 and 22 showed.
Crude for December edged down $0.41 to $96.945 barrel.
In the oil patch, MEG Energy (MEG.TO) gained nearly 3 percent, while Niko Resources (NKO.TO) diving over 5 percent.
Communications and media company Rogers Communications, Inc. (RCI_B.TO) shed over 2 percent after reporting third quarter net income of C$464 million or C$0.90 per share compared to C$466 million or C$0.90 per share in the same quarter last year. On an adjusted basis, net income was C$501 million or C$0.97 per share compared with C$495 million or C$0.96 per share in the year-ago period. Analysts expected earnings per share of C$0.96 for the quarter.
Fertilizer maker Potash Corp. (POT.TO) lost about 5 percent after reporting third-quarter earnings of $356 million or $0.41 per share down from $645 million or $0.74 per share in the same period last year as a result of weaker prices for all three nutrients and lower potash sales volumes. Analysts expected the company to report earnings of $0.43 per share for the quarter.
In economic news from the U.S., the Labor Department said initial jobless claims dropped to 350,000 in the weekended October 19, a decrease of 12,000 from the previous week's revised figure of 362,000. Economists had expected claims to fall to 340,000 from the 358,000 originally reported for the previous week.
Separately, the Commerce Department said said the trade deficit ticked up to $38.8 billion in August from a revised $38.6 billion in July. Economists had expected the deficit to widen to $40.0 billion from the $39.1 billion originally reported for the previous month. The Commerce Department said the value of imports was virtually unchanged at $228.0 billion, while the value of exports edged down to $189.2 billion from $189.3 billion.
From the euro zone, Germany's private sector economy expanded at the slowest pace in three months during October, as the slowdown in services growth offset an improvement in manufacturing, preliminary data from a survey by Markit Economics showed. The flash composite output index dropped to a three-month low of 52.6 from 53.2 in September.
Meanwhile, an indicator of private sector performance for the euro area signaled expansion for the fourth straight month in October, but declined unexpectedly from a 27-month high, survey results showed. Due to a slowdown in services, the flash composite Purchasing Managers' Index fell unexpectedly to 51.5 from 52.2 in September, Markit Economics said. The reading was expected to rise to 52.4.
For comments and feedback: contact email@example.com