The Toronto stock market was higher near midday Friday as strength from U.S. earnings provided some motivation against the fast approaching deadline for Cyprus to deal with its debt troubles.
The S&P TSX index remained positive 25.76 points to reach noon Friday at 12,773.63
The Canadian dollar improved 0.30 cents to 97.79 cents U.S.
Canadian financial stocks gained, with Royal Bank rising $1.04 to $61.78.
Finance Minister Jim Flaherty unveiled tighter rules for mortgages in Thursday’s federal budget. The budget said the government will restrict banks’ ability to insure conventional mortgages, those with over 20% householder equity, to only those used in Canada Mortgage and Housing securitization programs.
As well, it said it will prohibit the use of government-backed insurance — both on conventional and heavily leveraged mortgages — as collateral if they are not sponsored by CMHC.
The May copper contract gained 3.4 cents to $3.47 U.S. a pound. Metals stocks took it on the chin, though, as First Quantum Minerals backtracked 62 cents, or 3%, to $19.98.
Gold stocks were also lower, primarily Allied Nevada, which plummeted 97 cents, or 5.2%, to $17.60.
Shares of BlackBerry, which formerly called itself Research In Motion, gained 1.5% as the new BlackBerry Z10 touchscreen smartphone hit shelves in the United States. AT&T began selling the phone on Friday, more than six weeks after the company launched the devices elsewhere. Shares were up 25 cents to $16.77.
Stella-Jones Inc. is increasing its dividend 25% after closing out a record year in terms of sales and net income. The company said earnings were $16.5 million or $1 per diluted share, an increase from $13.4 million or 83 cents per diluted share a year earlier. Shares dropped 47 cents to $80.25.
ON BAYSTREET
The TSX Venture Exchange faded 2.92 points to 1,100.06.
All but four of the 14 Toronto subgroups were higher at noon, with financials climbing 0.8%, telecoms up 0.7%, and health-care ahead 0.4%.
The four laggards were weighed mostly by metals and mining, off 1%, while gold sank 0.7%, and materials slid 0.4%.
ON WALLSTREET
U.S. stocks rose early Friday, after a representative of the Cyprus government said a bailout deal could be reached in the next few hours.
The Dow Jones Industrials stayed positive 76.37 points to break for lunch at 14,497.90
The S&P 500 index was 8.69 points higher to 1,554.59. The tech-heavy NASDAQ Composite stayed aloft 15.20 points to 3,237.80.
Early Friday, shares of Micron Technology spiked higher after the company's earnings blew past estimates, sparking a slew of analyst upgrades.
Shares of BP rose after the oil giant said it was moving ahead with plans to buy back up to $8 billion U.S. of stock after completing the sale of its 50% stake in TNK-BP to Rosneft.
Nike shares surged after the apparel giant reported quarterly earnings on Thursday that beat expectations.
Tiffany's stock jumped after the jewelry retailer reported a jump in quarterly profit.
Meantime, all eyes are on Cyprus, where lawmakers are discussing new proposals to raise the money the country needs to qualify for its European Union bailout.
Talks between Russian officials and the Cyprus government broke up early Friday, with no agreement on a cash infusion that could help the island nation secure a 10-billion-euro bailout. Nearly a third of the money in Cyprus' outsized banking sector is from Russian depositors.
The European Central Bank told the troubled nation Thursday that it had until Monday to find a solution.
Prices on the 10-year U.S. Treasury recovered, driving yields back to Thursday’s 1.93%. Treasury prices and yields move in opposite directions.
Oil prices gained 69 cents to $93.14 U.S. a barrel.
Gold prices dipped $6.10 to $1,607.70 U.S. an ounce.
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