Canadian stocks were extending gains for a second session Thursday morning after ECB governor said the central bank will do whatever is needed to preserve the euro. The comments also raised speculation that ECB, in its upcoming meeting next week, will take drastic measures to tackle the debt situation in the region.
Commodities were trading firm as the euro surged higher amid reports that European Central Bank governor Mario Draghi, in a speech at the Global Investment Conference, vowed that the central bank will do whatever is needed to preserve the euro.
The S&P/TSX Composite Index advanced 59.89 points or 0.52 percent to 11,552.40, a day after snapping its three-session losing streak.
The Diversified Materials Index surged nearly 2 percent, with Inmet Mining (IMN.TO) and First Quantum Minerals (FM.TO) adding around 2 percent each.
The price of crude oil was extending gains Thursday morning as the euro surged higher following ECB governor Mario Draghi's comments. Crude for September moved up $0.76 to $89.73 a barrel.
In the oil patch, Suncor Energy (SU.TO), Cenovus Energy (CVE.TO), Vermilion Energy (VET.TO), MEG Energy (MEG.TO) and Imperial Oil (IMO.TO) gathered over 2 percent each.
Energy services company Mullen Group Ltd. (MTL.TO) reported a much lower second-quarter net income of C$7.4 million or C$0.09 per share compared to C$12.3 million or C$0.15 per share last year. Adjusted net income for the quarter was C$18.5 million or C$0.23 per share compared to C$15.0 million or C$0.19 per share last year. Analysts were expecting the company to report earnings of C$0.22 per share for the quarter. The stock edged up 0.20 percent
The price of gold was firm around its four-week high Thursday morning as the U.S. dollar was struggling to sustain recent gains versus a basket of currencies. Gold for August gained $6.80 to $1,614.90 an ounce.
Agnico-Eagle Mines Ltd. (AEM.TO) soared 7 percent after reporting consensus-beating second quarter earnings. The gold miner reported a lower second-quarter net income of $43.3 million or $0.25 per share compared to $68.8 million or $0.40 per share in the same quarter last year. However, adjusted net income for the latest-quarter was $68.9 million or $0.40 per share. Analysts were expecting the company to report earnings of $0.31 per share.
Goldcorp Inc. (GG, G.TO) moved up 1.50 percent after reporting lower second quarter net earnings of $268 million or $0.26 per share compared to $489 million or $0.52 per share a year ago. Adjusted net earnings totaled $332 million or $0.41 per share compared to $413 million or $0.52 per basic share. Analysts were expecting the company to report earnings of $0.41 per share for the quarter. For fiscal 2012, gold production guidance has been revised to between 2.35 and 2.45 million ounces, down from the previous guidance of 2.6 million ounces.
On the other hand, Barrick Gold (ABX.TO) dived 8 percent after announcing that said its second-quarter net earnings slid to $0.75 billion or $0.75 per share, from $1.16 billion or $1.16 per share in the prior-year quarter. Adjusted net earnings were $0.78 billion or $0.78 per share, lower than $1.12 billion or $1.12 per share a year ago. Analysts were expecting the company to report earnings of $0.95 per share for the quarter.
Fertilizer maker Potash Corp. (POT.TO) lost over 2 percent after posting lower second-quarter net income of $522 million or $0.60 per share, versus $840 million or $0.96 per share last year. Analysts were expecting the company to report earnings of $1.02 per share for the quarter. Looking ahead to the third quarter, net income per share is estimated to be in the range of $0.70 - $0.90, lower than consensus projections of earnings of $0.95 per share.
Chemical products company Methanex Corp.(MX.TO) reported improved second quarter net income of $52.24 million or $0.50 per share compared with $40.53 million or $0.43 per share for the second quarter of 2011. Adjusted net income for the quarter was $44 million or $0.47 per share compared to $39 million or $0.41 per share in the same quarter last year. Analysts were expecting the company to report earnings of $0.58 per share for the quarter. The stock shed over 3 percent.
In economic news from the U.S., the Labor Department said initial jobless claims tumbled to 353,000 from the previous week's revised figure of 388,000. Economists had expected jobless claims to edge down to 380,000 from the 386,000 originally reported for the previous week.
Meanwhile, according to figures released by the Commerce Department overall new orders for durable goods came in at $221.6 billion, a 1.6 percent increase from May levels. Furthermore the increase, which was much higher than most economists expected, came atop revised figures for May that showed a 1.6 percent increase in durable goods orders for that month, higher than the 1.1 percent increase initially reported.
From the euro zone, German consumer confidence is set to rise modestly in August despite the growing tensions surrounding the Eurozone's economic prospects, a survey by Market research group GfK revealed. GfK's consumer confidence index for August rose to 5.9 from 5.8 in July. Economists expected the index to remain at the July level.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org