Stocks Have Healthy Open

Air Canada, Bombardier in Focus

Canada's main stock index rose at the open on Friday, as energy stocks climbed on the back of higher oil prices, with upbeat earnings from Enbridge Inc also offering support.

The S&P/TSX Composite Index jumped 77.25 points to kick off Friday at 15,773.23

The Canadian dollar recovered 0.18 cents at 75.38 cents U.S.

Canadian markets are closed Monday for Family Day.

Enbridge posted a jump in quarterly profit, compared with the year ago when it had taken a $4.55-billion charge related to the writedown of some assets. Enbridge gained 45 cents, or 1%, to $47.80.

Warren Buffett's Berkshire Hathaway said on Thursday it had taken a fresh stake in Suncor Energy for the second time in about six years, sending the U.S.-listed shares of the energy major up in after-market trading.

Suncor leaped $1.20, or 2.8%, to $44.44.

Air Canada beat analysts' estimates for quarterly profit, as it earned more from each seat sold, offsetting higher fuel costs and other expenses.

Shares in the Maple Leaf airline faded 22 cents to $31.76.

CIBC raised the price target on Bombardier to $4.75 from $4.50. Bombardier galloped 18 cents, or 7.2%, to $2.69.

National Bank of Canada cut the price target on Canadian Tire to $170.00 from $180.00. Canadian Tire retreated in price 38 cents to $139.64.

Canaccord Genuity raised the price target on Telus to $51.00 from $49.00. Telus ditched 16 cents to $46.66.

On the economic slate, Statistics Canada said foreign investors reduced their holdings of Canadian securities by $19.0 billion in December, led by a record divestment in Canadian bonds. At the same time, Canadian investors reduced their holdings of foreign securities by $425 million, on sales of U.S. Treasury instruments.

Meanwhile, the Canadian Real Estate Association said national home sales rose 3.6% between December 2018 and January 2019. However, actual (not seasonally adjusted) home sales were down by 4% from a year ago. The number of newly listed homes edged up 1% month-over-month in January.

ON BAYSTREET

The TSX Venture Exchange gained 4.43 points to 612.83

ON WALLSTREET

Stocks rose on Friday amid increasing hopes for a U.S.-China trade deal as equities were on pace to post another solid weekly gain.

The Dow Jones Industrials screamed higher 284.69 points, or 1.1%, to 25,724.08, as J.P. Morgan Chase and Caterpillar outperformed.

The S&P 500 regained 21.58 points to 2,767.31, led by financials and tech.

The NASDAQ Composite gained 18.44 points to 7,445.40

The 30-stock Dow and NASDAQ were both on pace to post their eight consecutive weekly gain. The S&P 500, meanwhile, was on track for its seventh weekly gain in eight. The indexes were all up more than 1% entering Friday's session. Monday, markets are closed for Presidents’ Day.

On the data front Friday, industrial production for January fell 0.6%, towering over an expected increase of 0.3%. Consumer sentiment data are scheduled for release later on Friday.

Chinese President Xi Jinping said trade talks between the U.S. and China will continue next week in Washington. This comes after a U.S. trade delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer was in Beijing this week.
China and the U.S. are trying to strike a trade deal before an early March deadline.

Prices for the benchmark 10-year U.S. Treasury slid, raising yields to 2.67% from Thursday’s 2.65%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.06 to $55.47 U.S. a barrel.

Gold prices gained $5.70 to $1,319.60 U.S. an ounce.