TD Bank (TSX:TD) boosted its dividend nearly six per cent to 72 cents while posting lower net income from a year ago. The bank's first-quarter net income dropped five per cent to $1.48 billion, or $1.55 per share. But its shares rose $1.23 to $82.06 as the bank surpassed analyst expectations with diluted earnings per share of $1.86, 10 cents above the analysts' estimates.
Royal Bank of Canada (TSX:RY) is raising its dividend six per cent to 57 cents a share amid a sharp drop in profits that were affected partly by dramatically lower earnings in its capital markets division. Its net income fell five per cent to $1.86 billion, or $1.21 per share.
The results beat analyst expectations on a cash diluted basis of $1.25 per share, compared to consensus expectations of $1.13 and its shares gained $1.38 to $57.06.
National Bank (TSX:TD) also posts results Thursday and its shares added 77 cents to $77.85.
Positive American economic data also encouraged buyers. The U.S. Commerce Department said consumer spending increased 0.2 per cent in January. That's better than December's reading of no change.
Americans' income rose 0.3 per cent, the second straight monthly increase.
Also, the number of people seeking unemployment benefits fell slightly last week to the lowest point in four years, a further sign that the U.S. job market is steadily improving. A seasonally adjusted 351,000 people sought unemployment aid, down from 353,000 the previous week.
New York's Dow Jones industrial average was up 46.05 points to 12,998.12. The Nasdaq composite index rose 11.16 points to 2,978.05 and the S&P 500 index advanced 5.52 points to 1,371.2.
The TSX base metals sector gained 1.06 as commodity prices advanced following good news on China's economy with the May copper contract up three cents to US$3.91 a pound.
China's manufacturing sector gained momentum in February, helped by strength in new orders, export demand and production. The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, rose 0.5 points to 51.0 from January's 50.5 and December's figure of 50.3 in a third straight month of steady improvement.
Signs of an improving U.S. economy and hopes that China will loosen lending requirements to encourage growth boosted copper prices about 2.5 per cent during February. China is the world's biggest consumer of copper, viewed as an economic bellwether as it is used in so many businesses.
Ivanhoe Mines (TSX:IVN) climbed 48 cents to $17.65.
The energy sector was off 0.06 per cent as oil prices moved higher for a second day as the April contract on the New York Mercantile Exchange added 59 cents to US$107.66 a barrel. Suncor Energy (TSX:SU) backed off 29 cents to $35.33.
Prices had gained 52 cents Wednesday despite data showing that U.S. crude supplies grew more than expected last week amid weak gasoline demand.
The gold sector gained more than one per cent while bullion prices stabilized after tumbling almost US$80 on Wednesday as the latest U.S. economic data and comments by U.S. Federal Reserve chairman Ben Bernanke sent a signal that the central bank won't be embarking on another round of quantitative easing, which has involved printing money in order to buy government bonds.
Gold prices have benefited from past rounds of QE and speculation over further measures because of the inflation implications of such stimulus measures.
The April bullion contract on the Nymex gained $4.90 to US$1,716.20 an ounce. Goldcorp Inc. (TSX:G) climbed 75 cents to $48.72.
North American stock markets finished lower on Wednesday after Bernanke said he was surprised by the scale of good news emerging about the U.S. economy. Investors concluded that the Fed won't be pumping more money into the U.S. economy any time soon and that interest rates may rise sooner than anticipated.
The tech sector was the leading loser with shares in Research In Motion Ltd. (TSX:RIM) down 48 cents to $13.55 after Jefferies & Co. cut its earnings estimate and said there's a greater than 50 per cent chance that the maker of BlackBerrys will miss its device sales forecast for the fiscal fourth quarter, which ended in February.
Another drag on the TSX was Bombardier Inc. (TSX:BBD.B). The transportation giant posted net income of US$214 million or 12 cents per share for the fourth quarter, down from $295 million or 16 cents per share a year earlier. Quarterly revenues totalled $4.3 billion, compared to $5.6 billion in the previous year. Its shares fell 24 cents to $4.51
George Weston Limited (TSX:WN) reported that profits fell 1.8 per cent in the fourth quarter to $109 million as it faced various operational costs. Sales grew 3.5 per cent to $7.64 billion. The company expects modest growth in sales in 2012 as it continues to endure higher commodity costs in the first half of the year. Its shares dipped 19 cents to $63.65.
European markets were also positive while London's FTSE 100 index gained 0.81 per cent, Frankfurt's DAX rose 0.87 per cent and the Paris CAC 40 was up 1.26 per cent.
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