Toronto stocks were lower in the first hour of Friday trading, 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 doffed 18.66 points to begin Friday trading at 12,534.26
The Canadian dollar gathered 0.13 cents to 96.96 cents U.S.
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. Magna shares gained $2.25 to $82.40
BlackBerry Ltd is warming up to the possibility of going private, as the smartphone maker battles to revive its fortunes. Shares jumped 61 cents to $10.12
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. Aviglion shares dumped 59 cents to $18.02.
National Bank Financial cut the rating on Black Diamond to sector perform from outperform on valuation. Black Diamond shares hurtled earthward 98 cents to $24.15.
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. Canadian Tire shares slid 51 cents to $88.94.
CIBC raised the price target on Manulife Financial to $20 from $19, says as expected, core earnings growth stalled in the second quarter, though earnings quality was better. Manulife shares slipped 11 cents to $17.68.
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, 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 dropped 2.04 points to 913.29
The 14 Toronto subgroups were evenly divided between those gaining ground and losing it. Metals and mining led the former half, picking up 2.2%, while global base metals hiked 1.7% and information technology gained 1%.
The seven laggards were weighed mostly by industrials, down 0.9%, health-care, off 0.6%, and utilities, sliding 0.5%.
ON WALLSTREET
All three U.S. stock averages were flat in Friday morning trading. Barring a big move higher later in the day, the major indexes will close with a loss for the week.
The Dow Jones Industrial Average slipped 51.62 points to start Friday at 15,446.70
The S&P 500 index was negative 2.11 points to 1,695.37. The NASDAQ docked 2.14 points to 3,666.98.
This week notwithstanding, stocks have been on fire this year, jumping between 18% and 23%.
Even though the broader market wasn't doing much, there were several high-profile stocks on the move. Priceline.com shares moved closer to $1,000 U.S.
The online travel company posted quarterly earnings on Thursday that beat expectations.
J.C. Penney shares fell more than 3%, one day after gaining 7%. Reports that the struggling retailer began its search for a new CEO to replace its interim head executive, Mike Ullman have taken the retailer's stock on a wild ride.
Shares of Blackberry surged, after Reuters reported that the Canadian smartphone company is looking for a buyer to take it private.
Prices for the 10-year U.S. Treasury dropped a bit, raising yields to 2.60% from Thursday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices reacquired $1.30 to $104.70 U.S. a barrel.
Gold prices fell $2.90 to $1,307 U.S. an ounce.
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