Stock markets in Toronto looked set to open lower on Friday after comments by a U.S. Federal Reserve official renewed talk that the Fed would begin tapering its bond-buying policy next month, overshadowing positive economic data from China.
The S&P/TSX composite index gained 140.19 points, or 1.1%, to finish a strong Thursday at 12,552.92. Futures figured lower, though, by 0.3%.
The Canadian dollar gained 0.30 cents, to 97.12 cents U.S. early Friday
Magna International Inc reported a stronger-than-expected 19% rise in second-quarter profit and raised its sales forecast for the year, buoyed by increased vehicle production in North America.
BlackBerry Ltd is warming up to the possibility of going private, as the smartphone maker battles to revive its fortunes.
Raymond James cut the rating on Avigilon Corp to market perform from outperform, saying although the company continues to execute well and outperform peers, at the same time, its valuation has risen
National Bank Financial cut the rating on Black Diamond to sector perform from outperform on valuation
National Bank Financial raised the target on Canadian Tire Corp to $99 from $91 after the company delivered results which were ahead of consensus expectations
CIBC raised the price target on Manulife Financial to $20 from $19, says as expected, core earnings growth stalled in the second quarter, but earnings quality was better
China's factory output grew in July at its fastest pace since the start of the year, adding to a run of data suggesting the world's second-largest economy may be stabilizing after more than two years of slumping growth.
On the economic front, Statistics Canada reported that employment decreased by 39,000 in July, and the unemployment rate rose 0.1 percentage points to 7.2%. With this decrease, employment gains have averaged 11,000 per month over the past six months, slower than the average of 27,000 observed during the preceding six-month period.
Since July 2012, employment has increased 1.3%, or 226,000. At the same time, the number of hours worked has grown 0.7%, as part-time employment rose at a faster pace than full time (+2.2% versus +1.1%).
Moreover, Canada Mortgage and Housing Corporation told us that in July, The seasonally adjusted annualized rate of housing starts was 192,853 units in July, a decline from June and in line with market expectations. The June figure was revised down to 193,797 from 199,586 originally reported.
Analysts polled by Reuters had expected 193,500 starts in July.
ON BAYSTREET
The TSX Venture Exchange added 8.20 points Thursday to 915.33
ON WALLSTREET
U.S. stock futures were edging slightly lower Friday. If that trend continues through the session, the major indexes will close with a loss for the week.
Ahead of the opening bell, futures for the Dow Industrials dipped 32 points, or 0.2%, to 15,420. Futures for the S&P 500 fell 4.3 points, or 0.3%, to 1,689.40, and futures for the NASDAQ erased two points, or 0.1%, at 3,125
Despite this week's softer tone, stocks are still up by roughly 18% to 23% this year.
Priceline.com shares rose in premarket trading after the company posted quarterly earnings that beat expectations.
J.C. Penney shares fell before the bell, losing ground after gaining 7% Thursday, on reports that the struggling retailer began its search for a new CEO to replace its interim head executive, Mike Ullman.
Shares of Blackberry surged 10% before the markets opened, after Reuters reported that the Canadian smartphone company is looking for a buyer to take it private.
European markets were looking weary heading into the weekend, moving mostly lower in morning trading.
Asian markets, which tend to be relatively volatile, also had a rather uneventful Friday.
Tokyo's Nikkei 225 added 0.1%, the Shanghai Composite index edged up by 0.4% and Hong Kong's Hang Seng index rose by 0.7%.
This comes as new data showed inflation remained subdued in China last month
Oil prices hiked 43 cents to $103.83 U.S. a barrel
Gold prices docked 50 cents to $1,309.40 U.S. an ounce.
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