The Toronto stock market chalked up a solid advance Friday afternoon despite an unexpected decline in Canada's economy in November as the energy sector ran ahead amid a sharp gain in oil prices.
The S&P/TSX composite index overcame a triple-digit loss in the morning, and gained 36.20 points to end the day, week and month at 14,673.48
The Canadian dollar remained negative 0.53 cents to 78.72 cents U.S.
Strength on the TSX came primarily from the resource sectors with the energy group moving ahead as oil climbed.
A major gainer was Canadian Oil Sands, which said Thursday that it was slashing its quarterly dividend to five cents a share. It had already announced a cut in the payout in December to 20 cents from 35 cents at a time when oil was about $67.00 U.S. a barrel. COS shares gained one dollar, or 14.7%, to $7.85, more than wiping out Thursday's 7% slide.
The base metals sector rose as March copper picked up four cents to $2.47 U.S. a pound. Teck Resources gained 71 cents, or 4.5%, to $16.45.
The gold sector was ahead as Barrick Gold triumphed 76 cents, or 4.9%, to $16.25.
The TSX financial sector was down after Barclays Bank downgraded several of the major Canadian banks, saying even before the StatsCan report that "slower than anticipated economic growth will weigh on the earnings growth and valuations of the group."
Barclays downgraded Bank of Montreal, Royal Bank and TD Bank -- three of the Big Six -- plus Quebec-centred Laurentian Bank to underweight from equal weight.
BMO shares tumbled $3.30, or 4.3%, to $72.93, Royal backtracked $2.37, or 3.2%, to $71.74, TD gave back $1.04, or 2%, to $50.60, and Laurentian shares gave up one dollar, or 2.1%, to $46.81.
On the economic front, Statistics Canada reported this morning that Canada’s gross domestic product eased 0.2% in November, mostly following declines in manufacturing, mining, and oil and gas extraction.
ON BAYSTREET
The TSX Venture Exchange moved higher 9.70 points to 676.81
Eight of the 14 Toronto subgroups were higher, as energy marched ahead 4.7%, metals and mining gained 3.7%, and gold shone 3.5% brighter.
The half-dozen laggards were weighed mostly by financials, down 2.3%, industrials, sliding 1%, and real-estate, off 0.5%.
ON WALLSTREET
U.S. stocks declined on Friday, with benchmarks down for a second month, after data showed U.S. economic growth slowed sharply in the fourth quarter and Russia's central bank unexpectedly cut is benchmark interest rate.
The Dow Jones Industrials staggered 251.90 points, or 1.5%, to 17,164.95, after a 200-point-plus surge Thursday, as VISA jumped more than 4% after reporting a better-than-expected quarterly profit late Thursday.
The S&P 500 lost 26.26 points to 1,994.99, consumer discretionary leading losses and energy the sole sector in 10 gaining.
The NASDAQ index dwindled 48.17 points to 4,635.24, after spending much of the day in positive territory.
Chevron dropped after the oil producer and the Dow component reported a 30% decline in quarterly profit.
Apple fell, reversing course after climbing to a record $120 U.S. a share. Shake Shack jumped in its market debut.
Economically speaking, the U.S. Commerce Department reported gross domestic product expanded at a 2.6% annual rate after the third quarter's 5% pace.
Analysts had projected the economy would expand at a 3% rate in the final quarter of 2014.
U.S. consumer sentiment climbed in January to its highest in 11 years, with that confidence illustrated in some quarterly earnings, with Amazon.com rallying after reporting results that topped estimates on strong holiday sales.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 1.68% from Thursday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices moved up $3.15 per barrel to $47.68 U.S.
Gold prices gathered $27.80 an ounce to $1,282.40 U.S.
