Toronto Vaults on Broad-Based Rally

Tech, Health-Care Stocks Top List


Equities on Canada’s main stock markets were broadly higher on Friday, touching its strongest level in nearly eight months, as rail companies, banks and miners led gains.

The S&P/TSX Composite Index was off its highs of the day, but still positive 51.3 points to greet the week’s last noon hour at 15,869.30

The Canadian dollar hurtled lower 0.85 cents to 79.26 cents U.S.

In the tech sector, BlackBerry moved up 11 cents to $14.14, while Constellation Software jumped $3.20 to $752.19.

Canadian Pacific Railway extended its gains this week after reporting better than expected third-quarter profit late on Tuesday, and was up another 2% to $225.35.

Canadian National Railway advanced 0.7% to $103.38.

The materials group, which includes mining and other resource firms, added strength as nickel prices hit a six-week high and copper prices remained above $7,000 U.S. a tonne. Teck Resources Ltd rallied 3.5% to $28.76.

New Gold Inc jumped 5% to $4.685 after Canaccord Genuity raised its rating and target price.

On the down side, Klondex Mines Ltd fell 8.9% to $4.01 after the company reported third quarter production results.

DHX Media Ltd plunged 11.3% to $4.00

On the economic beat, Statistics Canada reported that the consumer price index rose 1.6% on a year-over-year basis in September, following a 1.4% increase in August.

On a seasonally adjusted monthly basis, the Consumer Price Index was up 0.2% in September, matching the increase in August.

The agency said retail trade declined 0.3% in August to $48.9 billion, after increasing 0.4% in July. Sales were down in eight of 11 sub-sectors, representing 57% of retail trade.

On the economic beat, Statistics Canada came out with employment insurance figures for August, and revealed that the number of beneficiaries decreased by 9,600, or 1.8%, to 524,200 in August, continuing a downward trend that began last October.

ON BAYSTREET

The TSX Venture Exchange picked up 4.71 points to 786.78

All but one of the 12 TSX subgroups were on the march midday, as information technology and health-care each hiked 1.1%, and industrials vaulted 0.8%.

Only consumer staples stayed in the basement, down 0.2%.

ON WALLSTREET

U.S. stocks traded higher on Friday after the Republicans took a step toward achieving tax reform.

The Dow soared 105.85 points from Thursday’s all-time record to 23,268.89. UnitedHealth and Boeing both rose more than 1.3% to lead advancers. Shares of JPMorgan Chase, meanwhile, hit an all-time high after also jumping 1%.

The S&P 500 improved 8.86 points above Thursday’s record close to 2,570.91, as financials led advancers.

The NASDAQ recovered 25.75 points to 6,632.82, for a record high.

PayPal was among the best-performing stocks in the index, rising nearly 5% after the company reported better-than-expected quarterly results.

Celgene shares were the worst performers on the S&P 500, falling roughly 10% after the company said it will discontinue trials on a drug aimed at treating Crohn's disease.

Wall Street also looked to corporate earnings on Friday, as General Electric and Honeywell, among others, reported quarterly results.

Honeywell reported earnings per share that were in line with expectations while GE posted a big miss on its bottom line.
GE shares dropped 2.4%.

The Senate approved a $4-trillion budget measure Thursday by a 51-49 vote. Passing a budget unlocks reconciliation, which enables the GOP to pass a tax bill with a simple 51-vote majority in the Senate. Using the tool removes the need for winning Democratic support, which would likely sink a GOP tax measure.

Investors also looked to Washington as President Donald Trump has reportedly completed interviews with all five of the candidates that he's considering for the role, including current Chair Janet Yellen.

A decision that could potentially even be announced next week

Prices for the benchmark 10-year Treasury note slumped, spiking yields to 2.38% from Thursday’s 2.32%. Treasury prices and yields move in opposite directions.

Oil prices eked up two cents a barrel to $51.31 U.S.

Gold prices retreated nine dollars an ounce to $1,281 U.S.