Source: The Canadian Press

The Toronto stock market clawed its way back from an earlier tumble to close higher Thursday as oil and copper prices advanced and investors took in a mixed bag of earnings.

The S&P/TSX composite index erased a 181-point drop from earlier in the session, rising 56.27 points to 13,840.57.

The TSX Venture Exchange was down 5.95 points at 2,347.82.

The Canadian dollar was weaker against the U.S. currency, down 0.19 of a cent at 100.42 cents US.

The recovery from the drop earlier in the session mirrored other such recent declines because investors, feeling more confident because of recent economic data and corporate earnings, have tended to view these dips as buying opportunities.

That’s one reason the TSX is up about three per cent in the first six weeks of 2011, while the Dow industrials has jumped about six per cent.

“(This) is a very different pulse to the market than where we were say 18 months ago, where investors were selling into rallies whereas this time they seem to be buying into dips,” observed Paul Taylor, chief investment officer, BMO Harris Private Banking.

Meanwhile, Egyptian President Hosni Mubarak went on television just before the market close to say that he is transferring power to his vice-president, Omar Suleiman

“The whole geopolitical sphere was an issue for the markets … be it European credit or Egyptian-Tunisian unrest,” Taylor said.

“So, clearly, it has been a menacing cloud and so, to the extent that we get by these issues and get a greater sense as to stability, that will be greeted well by the markets.”

The U.S. dollar strengthened against other currencies as data showed that the number of Americans applying for unemployment benefits plunged last week by 36,000 to 383,000, the lowest point since early July 2008.

The energy sector was the strongest group, up 1.2%, helped along by positive news from sector heavyweight Encana Corp. (TSX:ECA).

Encana has reached a deal with PetroChina to work together on a shale natural gas play around the Alberta-British Columbia boundary. The state-owned Chinese firm will invest $5.4-billion for a 50% stake in Encana’s Cutbank Ridge assets. Encana’s shares ran ahead $1.33 or 4.34% to $31.98.

On a negative note for Encana, the Calgary-based company’s fourth-quarter results missed analyst estimates. It reported a $42-million net loss for the fourth quarter.

Elsewhere in the sector, Suncor Energy (TSX:SU) gained 60 cents to $41.09.

Crude prices recovered from early losses and the March contract on the New York Mercantile Exchange was up two cents to US$86.73 a barrel.

Copper prices in New York gained momentum and moved up two cents to US$4.54 a pound. That was still down from last Friday’s latest record close of US$4.58 but the base metals sector was ahead almost one per cent.

Teck Resources (TSX:TCK.B) started to recover from an earnings disappointment Wednesday that sent its shares falling by more than eight per cent. On Thursday, the miner’s stock was up 45 cents at C$58.40 while Equinox Minerals Ltd. (TSX:EQN) fell 12 cents to $6.56 and First Quantum (TSX:FM) ran up $4.35 to $134.

The gold sector was weak as the April bullion contract in New York lost $3 to US$1,362.50 an ounce. Barrick Gold Corp. (TSX:ABX) shed 22 cents to C$47.47 while Goldcorp Inc. (TSX:G) faded 29 cents to $42.50.

The telecommunication services sector lost almost one per cent even as BCE Inc.’s (TSX:BCE) profit was up sharply in the last quarter, with the telecom and media company’s net income rising by 25.4% to $439 million or 60 cents a share. However, that figure missed analysts estimates by one cent and its shares drifted 47 cents lower to $36.12.

Operating revenues rose slightly to $4.68 billion from $4.65 billion, with most of that generated by BCE’s main subsidiary, Bell Canada.

Financials were also a weight but the negative showing was largely confined to the insurers. Manulife Financial (TSX:MFC) was down 99 cents or 5.23% at $17.93 as Canada’s largest insurance company handed in a record fourth-quarter profit of $1.79 billion or $1 per share, compared with a profit of $868 million or 51 cents per share in the prior-year period.

Stripping out the effect of equity markets and interest rates, the company earned $692 million — which was below its own projection for earnings between $700 million and $800 million for the quarter.

Also down was Sun Life Financial (TSX:SLF), which backed off 38 cents to $33.38.

The consumer discretionary sector was off 0.66% with Canadian Tire Corp. Ltd. (TSX:CTC) shares down $1.51 at $71.49 as the retailer earned $181.1 million or $2.22 per diluted share in its latest quarter, up from $96.2 million or $1.18 per diluted share a year ago. Revenue totalled $2.54 billion, up from $2.44 billion.

A major earnings disappointment from tech giant Cisco Systems helped depress New York markets.

The Dow Jones industrial average was down as much as 83 points before the blue chip barometer recovered to a 10.6-point loss to close at 12,229.29.

The Nasdaq composite index added 1.38 points to 2,790.45, while the S&P 500 index edged up 0.99 of a point to 1,321.87.

The networking gear maker said Wednesday it expected earnings, excluding unusual items, of 35 cents to 38 cents per share in the current quarter, which ends in April. Analysts were expecting 40 cents per share and its stock tumbled 14.16% to US$18.92 in New York.

The company warned late last year that sales to government customers were dropping off, and Cisco CEO John Chambers on Wednesday told analysts that the trend was continuing. Many U.S. states are struggling with big budget shortfalls.

In other Canadian earnings news, Thomson Reuters Inc. (TSX:TRI) is raising its quarterly dividend to 31 cents US per share or US$1.24 per share annually.

The announcement came as the information services company reported US$3.46 billion of revenue in the fourth quarter, up three per cent from the comparable period of 2009. Profit equalled 27 cents per diluted share, or 43 cents per share on an adjusted basis. Thomson Reuters stock lost $1.20 to $ 39.86.

Air Canada (TSX:AC.B) reported that fourth-quarter profits rose to $134 million, as it booked foreign exchange gains of $111 million. The results compared with a net loss of $56 million a year ago. For the full fiscal year, Air Canada reported a net profit of $107 million, compared with a loss of $24 million in 2009 and its shares were off three cents to $3.39.