The S&P/TSX Composite Index rose for a second day as investors analyzed corporate earnings and received more evidence that inflation in North America might have peaked.

The Canadian benchmark index closed with a 105.94 point gain, or 0.53 per cent, to 19,991.88 on Thursday.

“I think that [the market] got oversold. And I think that when you get oversold, you need to have rallies like this,” Greg Newman, portfolio manager and senior wealth advisor at Scotia Wealth, said in an interview Thursday.

“You have labour markets that continue to be strong and robust, yet you have inflation starting to show signs of coming down. So if that continues, then I think that equity markets are for real here,” he said.

In New York, markets pared their early morning gains through the trading day. The S&P 500 closed with a slight 0.07 per cent decline, the Dow ended 0.08 per cent higher and the Nasdaq lost 0.58 per cent.

U.S. stocks started strong after the latest Producer Price Index unexpectedly fell 0.5 per cent in July for the first time in more than two years, adding to evidence that inflation might have peaked.

Linamar Corp. was one of the best-performing TSX stocks Thursday after the company reported higher sales in its latest quarter and fewer supply chain issues on Wednesday.

“I feel like things are improving somewhat. You know, we see some areas improving, other areas still struggling a little,” Linda Hasenfratz, chief executive officer of Linamar, said in an interview Thursday. “We're not remotely out of the woods, but it's better than it was at the end of the year.”

Hasenfratz also said the semiconductor chip shortage was improving and costs for materials and logistics were also declining.

Linamar shares closed 10.62 per cent higher at $66.58.

Supply challenges are improving but we’re not fully out of the woods yet: Linamar CEO

Linda Hasenfratz, CEO of Linamar, joins BNN Bloomberg to discuss Linamar's latest earnings as they beat profit expectations. Hasenfratz says that she's seeing a mild improvement of supply chain issues and talks on the growth they are seeing in their mobility business this quarter, particularly in electric vehicles.

Meanwhile, Canadian Tire shares closed lower as its second-quarter profit tumbled, thanks to a major drag from its finance division.

West Texas Intermediate oil settled 2.60 per cent higher at US$94.34 per barrel after the International Energy Agency boosted its forecast for global demand growth this year.

The Canadian dollar traded a fraction higher at 78.28 cents U.S.

-- With files from Iva Poshnjari and Daniel Johnson