July 22, 2010 / 2:54 PM / 9 years ago

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

* TSX up 124.72 points at 11,637.30

* Financials, resources lead index higher

* All 10 sectors gain (Updates with details, comments)

By Claire Sibonney

TORONTO, July 22 (Reuters) - Canada’s main stock index shot higher on Thursday, as investors got a boost from firm commodity prices and strong U.S. earnings, following a steep selloff the day before on worries over the recovery.

North American markets jumped at the open as impressive results from Caterpillar (CAT.N), UPS (UPS.N) and 3M (MMM.N) eased growth concerns and eclipsed worries over a rise in U.S. jobless claims, while oil and copper prices advanced. [.N] [O/R] [MET/L]

The TSX was firing on all three of its most powerful cylinders: financials, up 0.7 percent, energy, up 1.1 percent, and the materials group, up almost 2 percent.

Royal Bank of Canada (RY.TO) advanced almost 1 percent to C$52.00, Suncor Energy (SU.TO) gained 1.7 percent to C$33.10 and Teck Resources TCKb.TO rallied 3.7 percent to C$36.44.

“I think it’s just a general rebound from yesterday,” said John Kinsey, a portfolio manager at Caldwell Securities.

“I think that people look at some of the earnings, especially today ... the earnings yesterday had been good too, until Bernanke’s speech.”

On Wednesday, Federal Reserve Chairman Ben Bernanke painted a gloomy outlook for the U.S. recovery, describing the prospects for the world’s biggest economy as “unusually uncertain”, prompting a broad flight from riskier assets and knocking the TSX down 1 percent [ID:nN21182792].

At 10:26 a.m. (1426 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 124.72 points, or 1.08 percent, at 11,637.30. All 10 sectors were higher.

In individual company news, Loblaw Cos (L.TO) added 0.9 percent to C$41.81, despite reporting that quarterly earnings at Canada’s biggest grocery store chain dropped 8.6 percent, as infrastructure and technology investments held back profit. [ID:nN21179582]

Precision Drilling Corp (PD.TO), the country’s biggest oil and gas well drilling company, plunged 5.1 percent to C$7.40 after reporting a quarterly loss on charges and foreign exchange hits. [ID:nSGE66L0LV]

Shares of Alimentation Couche-Tard (ATDb.TO) fell 0.4 percent to C$21.23 after the company raised its takeover bid for rival Casey’s General Stores (CASY.O) to $1.88 billion, in a renewed attempt to clinch a deal with the U.S. convenience store chain. [ID:nN22217702]

$1=$1.04 Canadian Reporting by Claire Sibonney; editing by Rob Wilson

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