The Toronto stock market ran ahead Friday as traders continued to react enthusiastically to an aggressive stimulus program from the U.S. Federal Reserve.
The S&P/TSX Composite index exploded 127.87 points, or 1%, to greet noon Friday at 12,488.03
The Canadian dollar faded 0.22 to 103.02 cents U.S.
The loonie had surged well over two and a half cents over the last week as the European Central Bank announced a plan to purchase government bonds in order to keep euro-zone borrowing costs under control and speculation mounted the Fed would act to support a slowing economy.
The base metals sector gained as the rally in copper prices continued with the December contract up 11 cents to $3.82 U.S. a pound.
Copper, viewed as an economic barometer because it is used in so many industries, has surged 18 cents this past week. Teck Resources rose $1.78 to $33.22.
Railroads rose alongside commodity stocks with Canadian Pacific Railway up 85 cents to $84.01.
The TSX gold sector gained and Barrick Gold Corp. climbed 89 cents to $41.21.
Geopolitical worries also drove oil prices higher as a wave of anti-American protests in the Mideast raised supply concerns.
Protesters stormed the U.S. Embassy compound in Yemen’s capital Thursday. Ongoing clashes have been taking place around the U.S. mission in Cairo, and the U.S. ambassador to Libya was killed Tuesday.
In the oil sector, Suncor Energy improved by 83 cents to $34.01.
Financials rose with Manulife Financial ahead 26 cents to $12.40.
In corporate news, Talisman Energy Inc., which switched CEOs earlier this week, plans to wind down its operations in Peru. It says that despite the company’s success in finding light oil in a property called Block 64, it was unable to build a big enough position there. Talisman shares gained 21 cents to $14.19.
Manitoba Telecom Services Inc. said Thursday it is launching a strategic review of its Allstream business division, opening up the possibility of a sale of the business. The company said recent changes by Ottawa to allow increased foreign investment in smaller telecoms have created an opportunity to consider a full range of alternatives.
Allstream provides Internet Protocol services such as voice and data to businesses in Canada and parts of the United States and has said growth in the division will be led by such services. MTS shares gained 47 cents to $34.05.
On the economic slate, Statistics Canada said manufacturing sales in this country fell 1.5% to $48.3 billion in July, the third decrease in five months.
Declines in transportation equipment were largely responsible for the overall drop. Manufacturers in 11 of 21 industries reported lower sales, representing over 60% of total manufacturing.
ON BAYSTREET
The TSX Venture Exchange added 10.67 points to 1,313.56
In all, 10 of the 14 Toronto subgroups were up on the morning, with metaqls and mining stocks leading the festivities, up 6.3%, global base metals ahead 3.9% and materials, up 2.8%.
The four laggards were weighed mostly by telecoms, down 1.3%, health-care, off 0.6%, and consumer staples, down 0.5%.
ON WALLSTREET
The QE3 rally continued on Wall Street Friday, picking up steam after the opening bell.
The Dow Jones Industrial average garnered 60.99 points by noon to 13,600.80
The S&P 500 index gained 6.20 points, to 1,466.19 and the tech-heavy Nasdaq Composite Index leaped 32.63 points to 3,188.46
Shares of homebuilders, including PulteGroup, Toll Brothers, and Hovnanian Enterprises, continued to soar on news of the Fed's mortgage buying program. Big banks Citigroup, JPMorgan Chase, Bank of America and Goldman Sachs were also among the top gainers.
Apple shares hit another all-time high, two days after the company unveiled the latest edition of its wildly popular iPhone. Amazon shares also rose to an all-time high.
UnitedHealth Group rose on the news that it will join the Dow Jones industrial average, replacing Kraft Foods, starting Sept. 24.
Home Depot Inc said it will close all seven of its big box stores and cut 850 jobs in China, another sign that companies are feeling the effects of a slowing Chinese economy.
Shares of Staples Inc were up 4% on a report Fortune that several private equity firms, including Bain Capital, are considering a buyout offer for the office supplies retailer.
The central bank announced a third round of quantitative easing, or QE3, Thursday, saying it would buy $40 billion U.S. of mortgage-backed bonds each month for however long it deemed necessary.
UnitedHealth Group will join the Dow Jones industrial average, replacing Kraft Foods, starting Sept. 24.
On the economic slate, retail sales came in higher than expected, rising 0.9%, the Census Bureau said.
August inflation was in line with what analysts had anticipated, with CPI increasing by 0.6%, according to the U.S. Bureau of Labor Statistics.
The Federal Reserve's data on industrial production for August showed a steeper-than-expected of 1.2%, while the preliminary edition of the University of Michigan's Consumer Sentiment Index for September came in higher than expected. Data on July business inventories from the Census Bureau also exceeded forecasts.
The price on the benchmark 10-year U.S. Treasury fell back, boosting yields to 1.85% from Thursday’s 1.76%. Treasury prices and yields move in opposite directions
Oil prices for September delivery added $1.02 to $99.33 U.S. a barrel.
Gold prices were up $6.33 an ounce to $1,773 U.S.
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