Equity markets in Toronto rose sharply on Friday, helped by expectations the Chinese government will come up with a stimulus package to support the economy and by a jump in shares of BlackBerry.
The S&P/TSX composite index grew 99.84 points to greet noon at 14,278.68
The Canadian dollar pulled back in price 0.23 cents at 90.40 cents U.S.
BlackBerry gained 3.4% at $10.30, after the company reported a much smaller-than-expected quarterly loss even as its smartphone sales continued to slide.
China's Premier Li Keqiang said that Beijing was ready to support the world's second-biggest economy and signaled a willingness to drive infrastructure investment. China is a major market for Canada's natural resources.
The materials sector, which includes mining stocks, advanced as Goldcorp added 1.5% to $27.87, and Barrick Gold climbed 1.4% to $20.23.
Shares of energy producers received a boost from higher oil prices. Suncor Energy rose 1.6% to $37.80, and Canadian Natural Resources Ltd was up 0.5% at $41.99.
In corporate news, BRP Inc forecast a lower-than-expected full-year profit. Shares of the snowmobile maker shed 7.1% to $29.60.
ON BAYSTREET
The TSX Venture Exchange remained positive 4.22 points to 989.57
All but two of the 14 Toronto subgroups remained strong by lunch hour, led by metals and mining, up 1.7%, while gold shone 1.4% brighter, and global base metals took on 1.3%.
The two laggards were consumer staples, down 0.4%, and utilities, off 0.2%.
ON WALLSTREET
Investors looked as if they had found inspiration heading into the weekend, a positive sign for stocks as the end of the first quarter draws near.
The Dow Jones Industrial Average sprang higher by 114.88 points – off its highs of the morning -- to 16,379.11. The S&P 500 index leaped 13.87 points to 1,862.91. The NASDAQ spiked 36.93 points to 4,188.16
The first three months of 2014 have been bumpy, and it's possible all the major indexes could end the quarter in the red. The Dow has declined by more than 1% since the start of the year. The S&P 500 is up just around 0.7% and the NASDAQ is essentially flat over the same period.
Microsoft was up sharply after it said yesterday that its Office software will be ready for use on the iPad. Shares ofTesla are also higher. The company announced it will install fire shields under its Model S sedan.
Today's big IPO is CBS Outdoor Americas, the outdoor advertising arm ofCBS Corp., which listed on the New York Stock Exchange. It was priced last night at $28 U.S. a share valuing the company at more than $3 billion U.S. This morning it's been trade close to $30 U.S. From the looks of it, "old media" still holds a place in the hearts of investors.
It's a very different story for shares of Everyday Health. That stock is also debuting today on the New York Stock Exchange, but investors don't seem to be as enthusiastic on the online health-related content provider, which is down over 1%.
Shares of Blackberry are surging, after the mobile device maker reported a narrower-than-expected loss for its fiscal fourth quarter. New CEO John Chen is trying to reverse the company's fortunes, and said in a statement that BlackBerry is "on sounder financial footing today with a path to returning to growth and profitability."
Blackberry has been recovering since the start of the year on hopes the company's CEO can revive the struggling smartphone maker. However, shares have declined over the past few days as investors worry about the company's turnaround plans and Societe Generale downgraded the stock to "sell".
Shares of Restoration Hardware are climbing after the furniture goods seller reported better than expected fourth quarter earnings.
Also on the radar, Wal-Mart sued Visa for $5 billion U.S. in a price fixing case related to credit card swipe fees. Retailers and credit card companies have been fighting over these fees for years, but this latest move comes with a potentially hefty price tag. Wal-Mart was up slighty, while Visa was down.
Banks, especially Citigroup, were among the biggest losers Thursday, but Citigroup edged up slightly in early trading. The Fed said Citi failed its stress test, but for "qualitative" reasons.
Economically speaking, U.S. consumer spending rose 0.3% in February, the biggest gain in three months. Personal income also gained 0.3% last month.
Prices for 10-year U.S. Treasuries sagged, propping up yields to 2.72% from Thursday’s 2.67%. Treasury prices and yields move in opposite directions.
Oil prices held onto gains of 28 cents to $101.56 U.S. a barrel.
Gold prices fell $2.70 to $1,292.00 U.S. an ounce.
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