TSX gains as Valeant, CIBC jump on results

Thu Feb 27, 2014 4:50pm EST
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By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed on Thursday, boosted by advances in shares of Valeant Pharmaceuticals International Inc (VRX.TO: Quote) and Canadian Imperial Bank of Commerce (CM.TO: Quote) after the companies reported quarterly results.

CIBC shares gained 1 percent after the lender's first-quarter profit jumped 50 percent, driven by stronger domestic lending profits and a gain on the sale of half of its Aeroplan credit card portfolio to Toronto-Dominion Bank (TD.TO: Quote).

TD, the country's second-largest lender, reported a 15 percent rise in first-quarter profit and boosted its dividend by 9 percent. The stock climbed 0.7 percent.

Investors digested data showing a rise in orders for long-lasting U.S. manufactured goods excluding transportation last month. Separate figures indicated that the number of Americans filing new applications for unemployment benefits gained last week. <ID: nL1N0LW132>

The market also took heart from comments from Federal Reserve Chair Janet Yellen, who said weather could have played a part in recent signs of weakness in the world's biggest economy.

The Toronto market has outperformed the S&P 500 .SPX so far in 2014, rising about 4.4 percent.

"I see a pretty resilient market. It doesn't seem to want to go down," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"As long as interest rates stay low, economic growth continues to improve and earnings meet or exceed expectations, we'll keep moving up," he added.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch