Canada's main equity index raced ahead on Friday as positive U.S. economic data and a rise in oil prices boosted the energy sector while data showing that U.S. housing starts and permits rose in September signaled the economic recovery is headed in the right direction.
Upbeat quarterly earnings from major U.S. banks also fueled the positive sentiment.
The S&P/TSX composite index surged 174.71 points, or 1.24%, to open Friday at 14,227.68
The Canadian dollar eked lower to 88.67 cents U.S.
In corporate news -- billionaire investor William Ackman turned up the heat on Allergan Inc. on Thursday when he accused the Botox maker's board of misleading investors to fend off a hostile takeover bid from Valeant Pharmaceuticals Inc.
Meanwhile a number of analysts released ratings today -- Cowen raised the rating on Calfrac Well Services to outperform from market perform.
Barclays raised the rating on Laurentian Bank of Canada to equal weight from underweight.
Cowen raised the rating on Trican Well Service to outperform from market perform.
Economically speaking, inflation numbers rolled in for last month. Statistics Canada reported that consumer prices rose 2.0% in the 12 months to September, following a 2.1% increase in August. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.2% in September, after rising 0.1% in August.
ON BAYSTREET
The TSX Venture Exchange gained 18.20 points to 810.13.
All but three of the 14 Toronto subgroups were higher today, with mining up 2.06%, financials ahead 2.03%, and industrials higher by 2.02%
The three laggards were gold, down 3.33%, materials, sliding 0.99%, and telecoms, down 0.04%.
ON WALLSTREET
U.S. stocks rallied on Friday, recovering some of the losses of the roller-coaster week, which brought on by concerns about global growth and the spread of Ebola.
The Dow Jones Industrial Average jumped 263.17 points, or 1.6%, to 16,380.41 while the Nasdaq Composite rose 41.05 points, or 1%, to 4,258.44.
The S&P 500 gained 24 points, or 1.3%, to 1,886.76, led by gains in industrials and health care sectors.
Several heavyweights reported results ahead of the opening bell. General Electric Co. shares rose 2.35% after third-quarter earnings topped market expectations.
Defense contractor Honeywell International Inc. lifted its low end of its 2014 per-share outlook, after third-quarter earnings beat expectations, sending the shares 4.25% higher.
Morgan Stanley gained 2.12% after the bank reported third-quarter earnings that topped forecasts.
Another bank, Bank of New York Mellon Corp. said third-quarter profit climbed 11%.
Urban Outfitters Inc. slid 14.29% after the retailer late Thursday warned weaker sales trends first reported in September are continuing.
Google Inc. shares fell 2.6% after the Internet giant late Thursday reported third-quarter below forecasts. Revenue rose to $16.52 billion U.S. from $13.75 billion U.S.
SanDisk Corp. slumped 2.9%, after the memory-chip maker on Thursday reported a drop in profit.
Advanced Micro Devices Inc. was up 3.03 percent after the chip maker on Thursday reported third-quarter adjusted earnings of three cents a share, below the four cents a share forecast by analysts. AMD also announced it will cut 7% of its global workforce by the end of the fourth quarter.
Federal Reserve Chairwoman Janet Yellen said Friday, in a speech on Friday said the recent sustained rise in inequality in the U.S. is of great concern. Yellen did not attempt to answer the “difficult questions” of how to promote equal opportunity.
Construction started on new U.S. homes rose 6.3% in September, bouncing up after a sizable August drop, led by growth for volatile apartment building, according to government data released Friday.
Separately, consumer sentiment in October hit a fresh seven-year high. Though, economists say the final release may be revised lower on account of Ebola fears as well as turmoil on Wall Street.
The 10-year note yield climbed 4.5 basis points on Friday to 2.201%.
Oil prices gained 5 cents to $82.75 U.S. a barrel.
Gold prices closed at $1,238.60 U.S. an ounce.
