CANADA STOCKS-TSX rallies on strong U.S. earnings, commodities

Thu Jul 22, 2010 4:43pm EDT
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* TSX up 154.43 points, or 1.34 percent, at 11,667.76

* Resources lead index higher

* Eight of 10 sectors gain; utilities, healthcare down (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, July 22 (Reuters) - Canada's main stock index surged to its highest close in a week on Thursday, as strong U.S. corporate earnings and buoyant commodity prices eased investor concerns about the health of the economic recovery.

North American stock markets soared on impressive results from Caterpillar CAT.N, UPS UPS.N and 3M MMM.N, recovering from Wednesday's hefty retreat, which followed a gloomy outlook from U.S. Federal Reserve Chairman Ben Bernanke. [ID:nN21182792] [.N]

Stronger oil and metals prices also helped support the resource-heavy TSX's move higher, with crude futures ending at an 11-week high above $79. [O/R] [MET/L]

The TSX's key financials, energy and materials sectors all rallied, with Royal Bank of Canada RY.TO up 1 percent at C$52.00, Suncor Energy SU.TO ahead 2.7 percent at C$33.41 and Teck Resources TCKb.TO, climbing 3.6 percent to C$36.42.

"We had some really good quarterly earnings numbers reported by some of the U.S. companies. I think that gave some boost to the U.S. market. The U.S. market always affects the Canadian market to some degree," said Tim Burt, president and chief investment officer at Cardinal Capital Management Inc in Winnipeg, Manitoba.   Continued...