Stock indexes enjoyed their biggest one-day bounce in two weeks on Thursday, driven by upbeat U.S. economic news and reports that Ireland could be close to accepting a loan to help end a financial crisis there.
The Dow Jones industrial average closed at 11,181.23, up 173.35 points, or 1.6 per cent. The broader S&P 500 closed at 1196.69, up 18.1 points, or 1.5 per cent. In Canada, the S&P/TSX composite index closed at 12,870.01, up 212.18 points, or 1.7 per cent.
The upbeat economic news came first in the form of a better than expected reading on U.S. jobless claims for the period ended last week, which helped drive down the four-week moving average of claims. Then, the Philadelphia Fed index surged above the consensus expectation, suggesting that business conditions in the region are improving.
The big stock move of the day came from General Motors Co., which began trading on the New York Stock Exchange following a successful initial public offering. If the weeks leading up to the IPO suggested a strong appetite for the car maker's shares, the first day of trading showed no signs of reversing that interest: The stock gained 3.6 per cent.
On the other hand, Ford Motor Co. - no longer the only game in town when it comes to publicly traded car makers - fell 3.4 per cent after it announced it would trim its ownership stake in Mazda Motor Corp.
Meanwhile, Canada's Western Coal Corp. surged 47 per cent following a $3.3-billion offer from Walter Energy.
Indeed, commodity stocks as a group were hot after key prices rebounded. Crude oil rose to $81.85 (U.S.) a barrel, up $1.41. Gold rose to $1353 an ounce, up $16.10. Suncor Energy Inc. rose 3.9 per cent, Canadian Natural Resources Ltd. rose 3.1 per cent and Teck Resources Ltd. rose 3.3 per cent.
Canadian financials were also strong with Manulife Financial Corp. up 2.4 per cent and Toronto-Dominion Bank up 1.7 per cent.