positive earnings from JPMorgan Chase, TSX higher amid rising oil prices

TSX higher amid rising oil prices, positive earnings from JPMorgan Chase ; The Toronto stock market was higher Wednesday as oil prices stabilized around US$107 a barrel and investors took in positive earnings from the U.S. financial sector.

The S&P/TSX composite index was up 67.36 points to 13,868.76 while the TSX Venture Exchange ran ahead 17.01 points to 2,320.78.

The Canadian dollar was up 0.3 of a cent to 104.13 cents US.

JPMorgan Chase’s first-quarter profit jumped 67 per cent on solid growth in investment banking fees and a drop in losses in its credit card portfolio. The bank earned US$5.6 billion, or $1.28 per share, beating analyst estimates of $1.15 per share. Revenue fell to $25.2 billion from $27.7 billion in the same period last year and its shares rose 45 cents to US$47.09.

In Canada, Calgary-based telecom Shaw Communications Inc. (TSX:SJR.B) reported that its profits rose 20.6 per cent to $167.3 million or 37 cents per share in the second quarter, meeting analyst expectations. Revenue increased 28.8 per cent to $1.2 billion. Its shares declined 23 cents to $20.34.

The energy sector was up one per cent as oil prices advanced following a drop of more than US$6 over the last two sessions, with the May crude contract on the New York Mercantile Exchange up 62 cents to US$106.67 a barrel.

Suncor Energy (TSX:SU) rose 69 cents to C$42.75 and Canadian Natural Resources (TSX:CNQ) was ahead 50 cents to $44.84.

Crude had jumped as much as 30 per cent from mid-February as markets quickly applied a high risk premium to oil amid a civil war in Libya and a wave of unrest that swept across several Mideast countries. But after rising to almost US$113 a barrel last Friday, there were worries about the degree to which high oil prices would impact demand and a general global recovery. Also, Goldman Sachs warned investors Monday that crude oil prices were due for a “substantial pullback.”

Falling prices for oil and metals helped send the TSX plunging more than 400 points over the last two sessions. The selloff was also sparked by a report from Goldman Sachs strategist Noah Weisberger that he no longer was recommending Canadian stocks.

The assessment came after the TSX hit its high for the year last Tuesday around the 14,270-mark.

The gold sector rose 0.64 per cent as bullion prices also advanced with the June contract on the Nymex up $8.90 to US$1,462.50 an ounce. Barrick Gold Corp. (TSX:ABX) gained 31 cents to C$50.66.

The base metals group climbed 0.64 per cent while copper was unchanged at US$4.39 a pound after falling for the last two sessions. Quadra FNX Mining (TSX:QUX) advanced 16 cents to C$14.07.

Rio Tinto shares were up 40 cents to US$72.53 in New York after the mining giant said extreme weather in Australia has hit production in the first quarter of the year. It said that global iron ore output dropped three per cent from a year earlier and hard coking coal production slumped 12 per cent. Copper production fell 14 per cent and alumina production shrank four per cent.

Rio Tinto was forced to declare force majeure at four of its Queensland coal mines because of heavy flooding.

New York markets also advanced as the U.S. Commerce Department said retail sales increased 0.4 per cent last month, the ninth consecutive gain. However, the increase shrank to a slight 0.1 per cent when sales at gasoline stations were excluded. But much of the weakness came from a big drop in auto sales. Excluding gasoline and autos, sales were up a more respectable 0.6 per cent.

The Dow Jones industrial average rose 55.13 points to 12,318.71.

The Nasdaq composite index gained 18.73 points to 2,763.52 while the S&P 500 index climbed 6.11 points to 1,320.27.

Investors also looked to an economic assessment from the Federal Reserve during the afternoon.

The Fed’s monthly report, known as the Beige Book, could have an impact on the markets if there are indications that inflationary pressures are mounting. Any signs that the Fed will take a more hawkish stance could weigh on stocks.

Earlier in Asia, Tokyo’s Nikkei 225 rose 0.9 per cent despite concerns about power shortages following the devastating March 11 earthquake and tsunami and the Japanese government’s downgrade of economic growth forecasts. South Korea’s Kospi was up 1.6 per cent and Hong Kong’s Hang Seng rose 0.7 per cent.

In mainland China, the Shanghai Composite Index rose one per cent while the Shenzhen Composite Index gained 1.1 per cent.

London's FTSE 100 index gained 1.26 per cent, Frankfurt's DAX rose 1.29 per cent and the Paris CAC 40 was up 1.06 per cent. For the latest updates PRESS CTR + D or visit Stock Market news Today

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