Bay Street Resurgence As Crude Oil Prices Jump 10% -- Canadian Commentary

(RTTNews) - Canadian stocks surged Thursday, taking back this week's losses after crude oil prices skyrocketed more than 10 percent.

The biggest daily gain in six years pushed U.S. WTI crude oil back above $40 amid speculation that Venezuela wants an emergency OPEC meeting.

It is thought that some OPEC members are getting impatient with Saudi Arabia wanting to keep prices low in order to stifle non-OPEC competitors.

A blockbuster U.S. GDP report also cheered investors.

Economic activity in the U.S. increased by much more than previously estimated in the second quarter of 2015, the Commerce Department revealed in a report on Thursday. The Commerce Department said real gross domestic product increased by 3.7 percent in the second quarter compared to the previously reported 2.3 percent growth.

With the upward revision, the pace of GDP growth in the second quarter was even stronger than the 3.2 percent jump expected by economists.

The benchmark S&P/TSX Composite Index rose 385.08 points or 2.88 percent at 13,766.67.

On Wednesday, the index closed up 230.66 points or 1.75 percent, at 13,381.59. The index scaled an intraday high of 13,393.22 and a low of 13,061.90.

The Energy Index rallied more than 6 percent percent, led by huge gains from Cenovus Energy (CVE.TO) and Canadian Natural Resources (CNQ.TO).

Eldorado Gold (ELD.TO) was higher by 1.81 percent, after a Greek court ruled in favor of the company in a dispute over a goldmine project in the northern part of Greece.

Goldcorp (G.TO) rose 2.7 percent. The company announced that it has agreed with Teck Resources to combine their El Morro and Relincho projects in Chile.

The Financial Index jumped 2 percent on strong earnings from Canada's big six banks.

Toronto-Dominion Bank (TD.TO) reported third quarter adjusted EPS of C$1.20, which topped the consensus estimate of C$1.18.

Canadian Imperial Bank of Commerce (CM.TO) reported third quarter adjusted EPS of C$2.45, which surpassed analysts' expectations of C$2.31. The company's Board of Directors also increased its dividend by C$0.03 per share.

On the economic front, Statistics Canada reported Thursday morning that Canadian average weekly employee earnings rose by 0.8 percent in June, on a month over month basis. On a year over year basis, earnings were increased by 1.9 percent.