Source: The Canadian Press

The Toronto stock market closed modestly higher Thursday as investors looked to some positive economic news from around the globe and bid commodity stocks higher.

The S&P/TSX composite index rose 14.94 points to 13,166.94 while the TSX Venture Exchange moved 10.04 points higher to 2,108.88.

A major advancer was yoga retailer Lululemon Athletica Inc. (TSX:LLL). Its stock ran ahead 14.55% to $64.23 after reporting that profits surged in the third-quarter on higher sales, surpassing analyst expectations.

The Vancouver-based company’s net profit rose to US$25.9 million, or 36 cents a share, compared with earnings of $14.1 million or 20 cents a share for the same year-earlier period. The consensus estimate compiled by Thomson Reuters was for 25 cents net earnings per diluted share. Third-quarter revenue increased 56% to $175.8 million.

The Canadian dollar rose slightly, up 0.03 of a cent at 98.96 cents US, as the greenback weakened slightly against other currencies, including the euro.

Market sentiment was also boosted by data showing that Japan’s economic growth rate has been revised upward to an annualized 4.5% in the third quarter and that Australia’s unemployment figures fell.

Positive sentiment has also lingered from a deal to extend Bush-era tax cuts in the United States.

Economists expect the tax package to lead to stronger growth in the U.S. economy. Goldman Sachs estimates the tax proposal could add between 0.5 and one percentage point to economic growth in 2011.

“It will put more money in people’s pockets, they’re not going to save 100%, some of it will get spent,” said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

“Just in terms of day-to-day activity, we had a nice move partly on anticipation of some of these feelings about the global economy.”

The base metal sector was the strongest group, up about 1% even though the March copper contract on the New York Mercantile Exchange was down one cent at US$4.09 a pound. Equinox Minerals (TSX:EQN) rose 16 cents to C$6.04 and First Quantum (TSX:FM) rose $3.29 to $108.50.

Industrial stocks were also stronger with Canadian National Railways (TSX:CNR) ahead 79 cents at $67.32.

The gold sector also lent support as gold prices advanced after two days of declines, with the February contract ahead $9.60 at US$1,392.80 an ounce. Goldcorp Inc. (TSX:G) gained 84 cents to C$46.80.

Oil prices were slightly higher after pulling back Wednesday amid speculation that China may raise interest rates to keep inflation down and news that a decline in U.S. crude inventories was tempered by increases in gasoline and distillates supplies.

The January crude contract on the Nymex was ahead nine cents Thursday at US$88.37 a barrel, and the energy sector edged 0.04% higher. Canadian Natural Resources (TSX:CNQ) rose 50 cents to C$42.57.

Shares in Cenovus Energy Inc. (TSX:CVE) moved down 23 cents to $31.31 as it said it will invest about $2 billion into its oilsands projects in 2011, with average oil production targeted to rise 2%.

New York markets were mixed as other data showed that U.S. business inventories at the wholesale level rose for the 10th straight month. The Commerce Department says wholesale inventories rose 1.9% in October, a much larger gain than many economists were expecting, while sales jumped 2.2%.

Dow Jones industrials slipped 2.42 points to 11,370.06.

The Nasdaq composite index gained 7.51 points to 2,616.67 while the S&P 500 index climbed 4.72 points to 1,233.

In other corporate news, computer maker Dell Inc. said it was close to acquiring data storage provider Compellent Technologies for about US$876 million.

The acquisition would extend a recent string of deals in the data storage industry as tech firms position themselves to help big companies and government agencies deal with ever increasing amounts of digital information. Dell shares were off three cents at $13.65.

Retailer Dollarama (TSX:DOL) said after the markets closed Wednesday that one of its major shareholders had agreed to sell about half of its holdings in the company for $324.8 million. The Montreal-based retailer, which will not receive any money from the secondary sale of its shares by Bain Capital, said a syndicate of underwriters would pay $29 per share. Earlier in the day, the company had issued a quarterly earnings report that beat expectations. On Thursday, its shares were down 10 cents at $28.98.

AbitibiBowater emerged from 20 months of creditor protection on Thursday with the newsprint giant’s new shares trading on the so-called grey market as of Friday, the Toronto Stock Exchange announced in a trader note.

The Montreal-based forest products company will retain the same ticker symbol (TSX:ABH) it used prior to seeking court protection from creditors. The shares will be posted for trading on a “when-issued” basis on Friday and be listed officially on the TSX when the initial distribution is completed, said the trading note.