Equity markets in Toronto made good headway on erasing some of the losses incurred during a very volatile (albeit short) week.
The S&P/TSX composite index surged 200.61 points, or 1.4%, to open Friday at 14,253.58
The Canadian dollar eked higher 0.07 cents at 88.90 cents U.S.
Billionaire investor William Ackman turned up the heat on Allergan Inc. on Thursday when he accused the Botox maker's board of misleading investors to fend off a hostile takeover bid from Valeant Pharmaceuticals Inc., whose shares gained $1.41, or 1.1%, to $134.77.
Cowen raised the rating on Calfrac Well Services to outperform from market perform. Calfrac shares boosted 64 cents, or 4.8%, to $14.04.
Barclays raised the rating on Laurentian Bank of Canada to equal weight from underweight. Laurentian’s shares hiked $1.86, or 4%, to $48.90.
Cowen raised the rating on Trican Well Service to outperform from market perform. Trican shares spiked 63 cents, or 6.2%, to $10.87.
Economically speaking, inflation numbers rolled in for last month. Statistics Canada reported that consumer prices rose 2.0% in the 12 months to September, following a 2.1% increase in August. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.2% in September, after rising 0.1% in August.
ON BAYSTREET
The TSX Venture Exchange gained 12.03 points to 803.96.
All but three of the 14 Toronto subgroups were higher in the early going, with energy streaking 3% ahead, industrials up 2.5%, and financials gaining 1.8%
The three laggards were gold, down 1.8%, materials, sliding 0.5%, and telecoms, down 0.1%.
ON WALLSTREET
U.S. stocks rallied on Friday, recovering some of the deep losses of the roller-coaster week, which had been colored by concerns about global growth and the spread of Ebola.
The Dow Jones Industrials leaped 225.82 points, or 1.4%, at the outset to 16,343.06.
The S&P 500 rallied 26.83 points to 1,889.59. The NASDAQ index gained 62.36 points to 4,279.75.
Several heavyweights reported results ahead of the opening bell. General Electric Co. shares rose 3.6% after third-quarter earnings topped market expectations.
Defense contractor Honeywell International Inc. lifted its low end of its 2014 per-share outlook, after third-quarter earnings beat expectations, sending the shares 3.8% higher.
Morgan Stanley gained 3.6% after the bank reported third-quarter earnings that topped forecasts.
Another bank, Bank of New York Mellon Corp. said third-quarter profit climbed 11%.
Urban Outfitters Inc. slid 14% after the retailer late Thursday warned weaker sales trends first reported in September are continuing.
Google Inc. shares fell 0.9% after the Internet giant late Thursday reported third-quarter below forecasts. Revenue rose to $16.52 billion U.S. from $13.75 billion U.S.
SanDisk Corp. slumped 2.6%, after the memory-chip maker on Thursday reported a drop in profit.
Advanced Micro Devices Inc. was off 0.4%. The chip maker on Thursday reported third-quarter adjusted earnings of three cents a share, below the four cents a share forecast by analysts. AMD also announced it will cut 7% of its global workforce by the end of the fourth quarter.
Federal Reserve Chairwoman Janet Yellen said Friday, in a speech on Friday said the recent sustained rise in inequality in the U.S. is of great concern. Yellen did not attempt to answer the “difficult questions” of how to promote equal opportunity.
Construction started on new U.S. homes rose 6.3% in September, bouncing up after a sizable August drop, led by growth for volatile apartment building, according to government data released Friday.
Also Friday, markets will get a fresh reading on consumer sentiment
Prices for 10-year U.S. Treasuries faded, raising yields to 2.21% from Thursday’s 2.15%. Treasury prices and yields move in opposite directions.
Oil prices gained 44 cents to $83.14 U.S. a barrel.
Gold prices settled six dollars to $1,235.40 U.S. an ounce.
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