Canadian stocks enjoyed a respectable jump Friday, overcoming worries about a debt downgrade for the province of Ontario.
The S&P/TSX Composite Index prospered 91.90 points to end Friday at 12,237.25
The Canadian dollar grew 0.34 cents, to 101.93 cents U.S.
Moody’s Investors Service downgraded Ontario’s bonds on Thursday, a day after Standard & Poor’s put the province, Canada’s most populous and leading manufacturing area, on negative watch.
Moody’s said the downgrade reflected "the growing debt burden and the risks surrounding the province achieving its medium-term fiscal plan given the subdued growth outlook, extended time frame back to balance and ambitious expenditure targets."
The move, however, was anticipated in some circles as Moody’s had put Ontario’s on negative outlook a few months back.
Air Canada shares soared 13.3% to 94 cents, after the airline released stronger-than-expected first-quarter guidance. Canada’s largest airline also reported a larger-than-expected cash position.
Agnico-Eagle Mines Ltd. gained 9.6% to $38.66, after the company said first-quarter earnings rose to 46 cents a share from 27 cents and revenue inched higher.
Among top losers, however, Petrominerales Ltd. lost 17.6% to $14.09, as the company said late Thursday the testing of its La Colpa oil well in Peru has been completed and no hydrocarbons were found.
Elsewhere in the energy field, Imperial Oil nipped 0.2% to $45.42, while Suncor acquired 0.5% to $31.64, and Encana soared 3.8% to $20.18.
In the gold patch, Kinross Gold prospered 1.5% to $8.89, while Goldcorp. increased 0.9% to $38.38, and Barrick Gold improved 1.4% to $39.88.
On the economic front, Statistics Canada reported that real gross domestic product grew everywhere except the Northwest Territories. Alberta, Saskatchewan, Yukon and Nunavut had the fastest growth in the country owing to exploration, mining and related construction activities.
Nationally, real GDP rose 2.6% in 2011 after increasing 3.4% in 2010.
ON BAYSTREET
The TSX Venture Exchange gained 19.52 points to 1,412.76, while the Nasdaq Canada index gained 2.55 points to 416.54
All but one of the 14 Toronto subgroups were in positive territory by the closing bell, led by consumer staples, up 1.4%, gold climbed 1.1%, and energy stocks gained 1%.
The one naysayer was in the industrial sector, down 0.03%.
ON WALLSTREET
In New York, stocks moved higher Friday, as upbeat corporate results outweighed a weaker-than-expected report on U.S. economic growth.
The Dow Jones Industrials gained 23.69 points to end the day and week at 13,228.30.
The S&P 500 acquired 3.38 points to 1,403.36, while the tech-heavy Nasdaq grew 18.59 points to 3,069.20.
The top performers on both indexes were Expedia and Amazon. Expedia surged 28% after the travel booking website reported strong earnings late Thursday. Amazon jumped 15% after its results beat expectations and eased concerns about the online retailer's expansion.
Ford Motor shares eased after it reported a 45% plunge in quarterly profit, because of losses in Europe and a slight dip in sales. But the automaker still managed to beat expectations.
Dow component Procter & Gamble reported quarterly earnings of 93 cents U.S. per share, which beat expectations by one cent. Sales rose by 2% to $20.2 billion U.S.
But the company, which makes everything from batteries to laundry detergent, lowered its forecast for full-year profits.
P&G now expects 2012 earnings per share to be in the range of $3.63 to $3.74 U.S., down from a range of $3.85 to $4.08 U.S.
The drug giant Merck reported that its quarterly earnings jumped 8% to 99 cents U.S. per share, excluding certain charges. But the company fell short of forecasts by Thomson One Analytics projecting earnings of $1.03 U.S. per share.
As of Thursday, 300 companies in the S&P 500 had reported earnings, and 70% of them beat estimates, according to experts
Overall, those same experts expect earnings to grow 6.6% in the first quarter, or 4.5% excluding profits by Apple
Economically, the U.S. government said first-quarter gross domestic product -- the broadest measure of the nation's economic health -- rose at an annual rate of 2.2%.
The report was weaker than expected. Economists forecast that GDP grew at a 2.5% rate in the first quarter, down from 3% in the fourth quarter of 2011.
A measure of consumer sentiment inched up to 76.4 in April, roughly in line with estimates. The University of Michigan Consumer Sentiment Index stood at 76.2 in March.
The price on the benchmark 10-year U.S. Treasury increased, lowering the yield to 1.93% from Thursday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil for May delivery finished ahead 16 cents to $104.71 U.S. a barrel.
Gold futures for June delivery rose $4.30 to $1,664.80 U.S. an ounce.
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