TSX Higher For Second Day, Led By Big Banks -- Canadian Commentary

(RTTNews) - Canadian stocks are higher Thursday mid morning, lifted by encouraging manufacturing data from China and strong earnings reports from TD Bank and Royal Bank of Canada.

Investors are also reacting to a mixed batch of U.S. economic data, including a report showing a larger than expected rise in US jobless claims.

The benchmark S&P/TSX Composite Index is up 47.91 points or 0.33 percent at 14,697.77. points or 0.31 percent at

On Wednesday, the ended up 124.67 points or 0.86 percent at 14,649.86, tracking positive global cues and on some earnings and merger news.

Among big six banks, Toronto-Dominion Bank (TD.TO) shares are up 2.3 percent after the bank said second-quarter net income increased to C$1.988 billion from C$1.717 billion in the same quarter last year. Earnings per share were C$1.04, compared to C$0.89 in the year-ago quarter. Adjusted earnings per share improved to C$1.09 from C$0.95, beating expectations for earnings of C$1.02 per share.

Royal Bank of Canada (RY.TO) is up over 2 percent on reporting second quarter net income of C$2.201 billion, up C$292 million or 15% from the prior year. Earnings per share improved to C$1.47 from C$1.25 in the year ago quarter.

Canadian Imperial Bank Of Commerce (CM.TO) Bank of Nova Scotia (BNS.TO) Bank of Montreal (BMO.TO) and National Bank of Canada (NA.TO) are up 0.3 to 1 percent.

ATS Automation Tooling Systems Inc. (ATA.TO) is up nearly 5 percent after its reported earnings per share of 13 cents from continuing operations in the fourth quarter, compared to 10 cents in the fourth quarter a year ago.

Computer Modelling Group Ltd. (CMG.TO) shares are up 2.7 percent after earnings per share rose to $0.71 for 2013-14, compared to $0.66 per share last year.

In the energy space, Crescent Point Energy Corp. (CPG.TO), Imperial Oil Limited (IMO.TO) and Canadian Oil Sands Limited (COS.TO) are modestly higher, while Talisman Energy Inc. (TLM.TO) is down 0.6 percent.

In the materials space, Turquoise Hill Resources Ltd. (TRQ.TO) and Lundin Mining Corporation (LUN.TO) are modestly higher, while HudBay Minerals Inc. (HBM.TO) and Sherritt International Corporation (S.TO) are rising 3 percent and 1.5 percent, respectively.

Among gold stocks, Franco-Nevada Corporation (FNV.TO), Agnico Eagle Mines Limited (AEM.TO), Kinross Gold Corporation (K.TO), B2Gold Corp. (BTO.TO) and Detour Gold Corporation (DGC.TO) are moving up 0.5 to 2 percent.

Industrial stocks Canadian Pacific Railway Limited (CP.TO), Progressive Waste Solutions Ltd. (BIN.TO) and WestJet Airlines Ltd. (WJA.TO) are up 0.5 to 1.5 percent. Meanwhile, Bombardier Inc. (BBD.B.TO) is down in negative territory, losing nearly 1.5 percent.

In the healthcare space, Valeant Pharmaceuticals International, Inc. (VRX.TO) and Extendicare Inc. (EXE.TO) are up 1.6 percent and 0.6 percent, respectively. Catamaran Corporation (CCT.TO) is slightly lower.

Technology stocks CGI Group Inc. (GIB.A.TO), Open Text Corporation (OTC.TO), Constellation Software Inc. (CSU.TO), BlackBerry Limited (BB.TO) and Descartes Systems Group Inc. (DSG.TO) are down 0.5 to 1.5 percent. However, DH Corporation (DH.TO) is moving higher, gaining over 0.5 percent.

In commodities, crude oil futures for July are little changed at $104.09 a barrel.

Natural gas for June is down 0.071 or 1.59 percent at $4.394 per million btu.

Gold futures for June are up $10.50 or 0.82 percent at $1,298.60 an ounce. Silver for July is up $0.249 or 1.29 percent at $19.587 an ounce.

Meanwhile, copper is up $0.20 or 0.63 percent at $3.143 per pound.

In the currency market, the Canadian loonie is trading at 1.0893 against the U.S. dollar, up 0.19 percent from previous close.

On the economic front, core retail sales in Canada, excluding automobile sales, were down 0.1 percent in March, compared to a revised 0.9 percent increase in February.

In economic news from the U.S., the data from the Labor Department showed initial jobless claims to have climbed to a more than expected 326,000 in the week ended May 17. Economists expected claims to increase to 310,000 from 297,000 in the previous week.

The data released by the National Association of Realtors showed existing home sales in the U.S., rose 1.3 percent to a seasonally adjusted annual rate of 4.65 million in April, from 4.59 million in March. That was slightly lower than an expected climb to 4.69 million.

The Conference Board's index of leading U.S. economic indicators was up for the third consecutive month, rising by 0.4 percent in April following an upwardly revised 1.0 percent increase in March.

Meanwhile, according to the flash purchasing managers index released by Markit, U.S. manufacturing activity improved to a 3-month high in May, with the manufacturing PMI rising to 56.2 compared to the 55.4 in April. The consensus estimate called for an increase to 55.9.