Markets in Toronto Friday shook off suspense about the impending fiscal cliff in the states, and bad vibes about Canada’s economy, to climb slightly higher at the outset.
The S&P/TSX Composite Index was ahead 25.96 points to open the week’s and month’s final session at 12,228.81
The Canadian dollar stepped back 0.13 cents to 100.60 cents U.S.
Much of the attention was focused on the retail sector.
Leon's Furniture Limited is offering to buy The Brick Ltd. in a deal the company values at $700 million. The offer is subject to approval by Brick shareholders and will need court and regulatory approval. Leon's will pay $5.40 per share in either cash or debentures. The opening price on Brick shares on the TSX on Friday was $5.32, while Leon’s stock gained six cents to $11.74
Leon's says the two chains would continue to operate as separate entities.
Investors will also look to Research In Motion after the company announced it will officially launch its long-awaited new BlackBerry 10 operating system on Jan. 30 simultaneously in several countries. Besides marking the official launch of BlackBerry 10, the company will also unveil the first two BlackBerry 10 smartphones. RIM shares gave back six cents to $11.42
On the economic slate, figures released by Statistics Canada showed that the economy continued moving, however slowly. Real gross domestic product rose 0.1% in the third quarter, slowing from the 0.4% growth in the second quarter. The slower pace of growth was the result of declines in exports and business investment. Final domestic demand grew 0.4%.
ON BAYSTREET
The TSX Venture Exchange subtracted 0.91 points to 1,217.47
All but one of the 14 Toronto subgroups were higher to begin the day. Metals and mining issues gained 1%, while global base metals improved 0.8%, and energy stocks took on 0.5%.
Only information technology – the home of RIM – fell back as a sector, and 0.4% at that.
ON WALLSTREET
U.S. stocks opened little changed Friday as investors remain sidelined by political gridlock in Washington.
The Dow Jones Industrials began Friday up 12.90 points to 13,034.70.
The S&P 500 moved 0.14 points higher to 1,416.09 and the Nasdaq Composite Index slid 3.13 points to 3,008.90
Investors have been grappling with uncertainty as lawmakers and President Obama engage in brinksmanship over year-end tax hikes and spending cuts. The so-called fiscal cliff could harm the economy at a time when the outlook for growth is already in question.
Few stocks made big moves in early trading Friday, though shares of St. Jude Medical were higher after the hospital's board authorized a $1-billion U.S. stock buyback.
Yum! Brands sank after the firm softened its expectations for China, predicting same-store sales in that key market would decline 4% in the fourth quarter.
Zynga shares slid 9% early Friday, after tumbling 13% after-hours Thursday on news that the terms of its deal with Facebook had substantially changed.
Research firm NPD Group reported sales of PCs running Microsoft in the four weeks ended November 17 dropped 21% from the previous year. Microsoft released its new operating system, Windows 8, on October 26.
Verisign, the company that makes money off the .com registration, said it reached a new agreement with the Commerce Department that bars future price increases.
Economic data released Friday showed personal income remained unchanged in October, while spending declined by 0.2% in the month.
Chicago's Purchasing Manager Index, a barometer of manufacturing activity in the area, was due shortly after trade begins.
Treasury prices were up in the morning, lowering yields to 1.61% from Thursday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices gained 18 cents to $88.25 U.S. a barrel.
Gold prices faded $4.50 an ounce to $1,722.70 U.S.
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