TSX UP ON EARNINGS, POSITIVE U.S DATA

TORONTO • The Toronto stock market closed with a solid advance Thursday as investors weighed mixed manufacturing data and concentrated on well-received earnings from Canadian corporate heavyweights, including grocer Loblaw Cos. and coffee chain Tim Hortons Inc.

The S&P/TSX composite index ran ahead 90.64 points to 14,210.37. The Canadian dollar fell US0.14¢ to US90.10¢.

The Dow Jones industrial average gained 92.67 points to 16,133.23, Nasdaq climbed 29.60 points to 4,267.55 while the S&P 500 index added 11.03 points to 1,839.78.

HSBC Holdings PLC’s preliminary version of its monthly China purchasing managers’ index dipped to a seven-month low of 48.3 from January’s 49.5. Numbers below 50 show activity contracting.

But a survey by Markit showed that manufacturing in the U.S. expanded at the fastest pace in almost four years in February. Its Flash U.S. manufacturing index rose to 56.7 from 53.7 in January.

Also, the Conference Board’s leading indicator, a measure of future growth, posted a moderate gain in January, suggesting the economy will continue to expand in the first half of this year.

The gold sector led TSX advancers, up about 4.5% while April bullion fell US$3.50 to US$1,317.10 an ounce.

Facebook Inc., the world’s biggest social network, announced a US$19-billion purchase of the popular messaging service WhatsApp late Wednesday. Facebook shares ticked US$1.57 higher to US$69.63.

Wes Mills, chief investment officer for Scotia Private Client Group, said the Facebook deal was another example of increased merger and acquisition activity, a very positive sign for markets. “We are seeing tons of M&A, it’s almost every day now or every week” and “that shows that CEOs are confident,” Mr. Mills said.

The TSX tech sector rose as BlackBerry Ltd. gained 41¢, or 3.8%, to $10.41 as the Facebook deal raised optimism that there is value in the smartphone maker’s messaging service.

The consumer staples sector was up 2% as Loblaw reported $183-million, or 65¢ per share, of quarterly adjusted net earnings, which was 10¢ above estimates. Revenue was up 2.3% to $7.64-billion, also better than expected and its shares climbed $2.01, or 4.75%, to $44.29.

Tim Hortons posted net earnings of 69¢ a share, up from 65¢ a year ago but below analyst estimates of 77¢. Revenue was up 10.7% to $898.5-million. The company also said it was raising its quarterly dividend by about 23% and its shares gained $1.04, or 1.8%, to $58.98.

The base metals segment was up 0.16% with March copper shedding US1¢ to US$3.28 a pound. The utilities sector led decliners, down 0.56%. TransCanada Corp. said Thursday that its quarterly net income was $420-million, or 59¢ per share, missing estimates by 1¢. It also raised its quarterly dividend by 4% to 48¢ a share and its shares declined $1.07 to $48.83.

The energy sector was off 0.13% as the March crude contract in New York slipped US39¢ to US$102.92 a barrel.