Canadian stocks rallied, paring the main index’s weekly loss, after a rally in gold, silver and diamond producers overshadowed a slump in finance companies triggered by concern they will need to raise more capital.
Toronto's S&P/TSX composite index ended a volatile day in which it had gained as much as 100 points early on, dipped into the red and came out with a surge of nearly 41 points, or 0.46%, to end the week at 8920.40.
The Dow Jones industrial average gained 0.8%. The Standard & Poor's 500 index added 6.38 points 0.7% to 850.12 and the Nasdaq composite climbed 17.49 or 1.2% to 1,529.33
In corporate news -- Agrium Inc. shares were $2.13 higher to $41.94 after it said it expects to take a US$115-million writedown on its retail operations due to ''unprecedented volatility'' in global markets in yet another blow to the fertilizer industry.
Shares in Onex Corp. were down 34 cents to $18.41 after it said it has raised US$3 billion of capital for its private equity fund, Onex Partners III LP, but also warned it has temporarily halved its commitment to the fund due to the uncertain investing environment.
The conglomerate will now commit $500 million to the fund, down from $1 billion on ''a temporary basis,'' it said in a release.
New Flyer Industries Inc. units were 12 cents higher to $9 after the Winnipeg-based manufacturer of heavy-duty transit buses said it ended 2008 with an order backlog of US$4.1 billion, up from $2.8 billion at the start of the year.
On the data front -- U.S. consumer prices fell 0.7% in December on a seasonally adjusted basis compared to the previous month, the Labor Department said Friday, after falling at a record pace in November. Economists had expected a 0.8% decline. Consumer prices rose just 0.1% in 2008 as a whole, the lowest increase since 1954 and well below the Federal Reserve's 1.5% to 2% preference over the long run.
The Canadian dollar rose slightly to 80.10 cents US.
BAYSTREET
All but three of the 13 TSX sub-groups hit the tape ahead of yesterday's totals. Bragging rights went to materials, adding 3.4%, followed by gold, ahead 3.2% and mining stocks, also up 3.2%.
The three sectors that lost ground were financials, down 1.2%, industrials were off 0.9% and consumer staples, which lost 0.5%
Meanwhile, the TSX Venture Exchange finished at 865.65, gaining 21.35 points, while the NASDAQ Canada index picked up 17.15 points to 511.27.
ON WALLSTREET
The Dow Jones industrial average gained 0.8%, or 68.73, to 8,281. The Standard & Poor's 500 index added 6.38 points 0.7% to 850.12 and the Nasdaq composite climbed 17.49 or 1.2% to 1,529.33
The U.S. government said early Friday that it will invest $20 billion in Bank of America and protect an asset pool worth $118 billion. Citigroup meanwhile will be guaranteed on $301 billion of assets.
Bank of America and Citigroup each reported massive losses for the fourth quarter: $1.79 billion for Bank of America and $8.29 billion for Citigroup. Merrill Lynch, which was acquired by Bank of America in a deal that didn't close until after the fourth quarter, lost over $15 billion.
Citigroup also said it would split into two business units, with one unit made up of brokerage and retail asset management, local consumer finance and a special asset pool.
Outside of financials, Intel jumped 3.8% as the world's top chip maker reported a 90% profit drop, which was in line with analysts' estimates.
The benchmark 10-year bond fell 1-8/32 to 112-10/32 and its yield rose to 2.34%. Bond prices and yields move in opposite directions. The 30-year bond sunk 1-3/32 to 131-4/32 and its yield jumped to 2.91%. Meanwhile, the 2-year note edged lower by 1/32 to 100-9/32 and its yield rose to 0.73%. And the yield on the short term 3-month bill was 0.12%, even with Thursday.
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