The Toronto stock market headed higher Friday after the Federal Reserve removed a great degree of uncertainty over its stimulus plans while data showed the U.S. economy is performing much better than expected during the third quarter.
The S&P/TSX composite index strengthened 84.77 points to greet noon at 13,476.97
The Canadian dollar skidded 0.13 cents to 93.65 cents U.S.
Traders also focused on BlackBerry after the struggling smartphone maker handed in quarterly earnings that were worse than expected.
Poor sales of its new BlackBerry 10 devices sent revenue tumbling 56 per cent from a year ago to $1.2 billion U.S., which was $400 million lower than analyst estimates compiled by Thomson Reuters. Adjusted losses from continuing operations, which filter out various expenses like restructuring costs, were $354 million U.S., or 67 cents per share, 23 cents below analyst estimates.
BlackBerry also said it finished the quarter with $3.2 billion in cash, and expects that strong cash position to continue in the current quarter. The firm also announced it had entered into a five-year strategic partnership with Foxconn to make phones in Indonesia and other fast-growing markets.
The stock wandered between positive and negative territory and at mid-morning was up 24 cents to $6.91 on the TSX.
The base metals segment advanced while March copper gained a cent to $3.31 U.S. a pound and the base metals component also rose. Teck Resources climbed 63 cents to $26.29.
Rail stocks rose alongside miners with Canadian National Railways ahead 70 cents to $60.86.
The telecom sector rose with Telus ahead 38 cents to $36.62.
The energy sector was up as Canadian Natural Resources was up 45 cents to $35.47.
The financials group was also ahead with Manulife Financial gaining 23 cents to $20.98.
Quantitative easing had supported gold prices because of inflationary fears. But inflation is tame in many countries and data out earlier this week showed the consumer price index rising at an annual rate of only 1.2%, significantly below the Fed's inflation target of 2%
Gold prices are down 29% so far this year while the TSX Global Gold sector has tumbled about 50%.
Enbridge shares were 13 cents higher to $45.46 after a joint review panel gave the thumbs up to the company's proposed Northern Gateway pipeline that would connect the Alberta oilsands to tankers on the B.C. coast.
However, the panel attached 209 conditions to the controversial $6-billion project. The final decision rests with the federal government, which has roughly six months to respond to the report.
On the economic slate, Statistics Canada reported this morning that November’s Consumer Price Index inched up 0.2%, after a 0.1% drop in October. On a year-over-year basis, the increase was 0.9%.
The agency also reported that retail sales eased 0.1% in October, in comparison to a market call of a 0.2% increase. This follows three straight monthly gains, and was mostly the result of lower sales at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange regained 0.45 points to 887.62
All but one of the 14 TSX subgroups were higher midday, led by information technology, zooming 2.2%, while metals and mining issues, were up 1.5%, and materials were better by 1.1%
Real-estate was the only naysayer, down 0.03%
ON WALLSTREET
Markets got a dose of holiday cheer Friday after the U.S. government said economic activity ramped up significantly more than previously thought in the third quarter.
The Dow Jones Industrials notched higher 91.92 points to 16,271
The S&P 500 index hiked 11.93 points to 1,821.53. The NASDAQ perked 43.73 points to 4,101.87
BlackBerry shares jumped 5% in volatile trading. The company reported a steeper-than-expected $4.4-billion U.S. loss and a 56% drop in quarterly sales.
The struggling smart phone maker also announced a five-year strategic partnership with electronics contract manufacturer Foxconn.
Still, interim CEO John Chen was optimistic during a conference call with analysts and expressed confidence that the company could turn around.
Open-source software company Red Hat soared 18% after a strong earnings report. That made Red Hat the top gainer in the S&P 500 for the day.
Nike shares dipped despite reporting quarterly profits that beat expectations.
And with the Dow and S&P 500 reaching all-time highs, several notable blue chip companies hit records too, including Google, Walt Disney, Comcast, and American Express.
Gold extended its decline Friday, a day after dropping to a three-year low. Prices have plunged 30% this year, the worst annual performance for the precious metal in decades.
Gross domestic product -- the broadest measure of economic activity -- grew at a 4.1% annual pace in the third quarter, up from the 2.8% pace that was originally reported in November.
The revised GDP figure shows the highest rate of growth for the economy since the last quarter of 2011 and comes just days after the Federal Reserve started pulling back on its economic stimulus by $10 billion U.S. per month.
Prices for 10-year U.S. Treasuries dropped, raising yields to 2.91% from Thursday’s 2.89%. Treasury prices and yields move in opposite directions.
Oil prices dipped 10 cents to $98.94 U.S. a barrel.
Gold prices spiked $11.70 to $1,205.30 U.S. an ounce.
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