Canada Stocks Gain on RIM EstimateCanada Stocks Gain on RIM Estimate, U.S. Retail Sales Increase
By Matt Townsend
June 11 (Bloomberg) -- Canadian stocks advanced for a second day as Research In Motion Ltd. had its profit estimate increased and U.S. retail sales rose for the first time in three months, spurring optimism the recession is easing.
RIM, the maker of BlackBerry phones, gained 0.9 percent after its first-quarter and 2010 profit estimates were raised at JPMorgan Chase & Co. Manulife Financial Corp, the nation’s largest insurer, added 1.6 percent. Barrick Gold Corp., the world’s largest bullion producer, fell 1.8 percent to offset gains as gold declined.
The Standard & Poor’s/TSX Composite Index added 43.84, or 0.4 percent to 10,641.82 at 10:34 a.m. in Toronto. The benchmark gained 0.5 percent yesterday and has surged 40 percent since its 5-year low on March 9.
RIM will earn 96 cents a U.S. share in the first quarter and $4.06 in fiscal 2010 on higher revenue and margins, according to JPMorgan. The prior estimates were for earnings of 88 cents and $3.71, respectively.
U.S. Retail sales rose 0.5 percent in May, the first gain in three months, as shoppers returned to showrooms seeking bargains from ailing carmakers. Manulife added 38 cents to C$25.52 to lead a gauge of financial companies in the S&P/TSX higher.