Markets on both sides of the border had to struggle, but most still came out ahead to end a fairly positive week.
Canadian investors got some more negative economic news with the release of Statistics Canada's February job figures, otherwise, the gains that powered a fourth straight positive session could have been even more so.
After floundering around much of Friday, Toronto's S&P/TSX composite index was slightly higher, 1.84 points, to close the week at 8,284.11
The TSX financial sector ticked higher after rising almost 20% over the past three sessions.
Bank of Montreal declined 57 cents to $31.36 while Scotiabank fell 31 cents to $29.74.
The energy sector declined ahead of a meeting of OPEC Sunday and investors are wondering if the cartel will cut production to support prices.
Meanwhile, the International Energy Agency has lowered its estimate for global oil demand in 2009. Petro-Canada slipped 68 cents to $29.25 and Canadian Natural Resources was down 97 cents to $47.04.
The base metals sector moved down with Ivanhoe Mines down 63 cents to $5.56 after the Vancouver-based miner said the Mongolian parliament has put off discussions about its investment agreement for the Oyu Tolgoi copper-gold mining complex until it reconvenes again next month.
Sherritt International declined 13 cents to $2.04.
The gold sector was up slightly, as Goldcorp Inc. rose $1.19 to $37.67.
The jobless numbers show the unemployment rate jumped to 7.7% last month from 7.2% in January as the economy shed 82,600 jobs.
This was the second outsized job contraction in a row following January's massive 129,000 labour market retreat.
Also on the economic front, Canada posted a record trade deficit in January on vanishing trade in automobiles with the U.S., signaling a deepening recession.
The merchandise trade deficit was $993 million in January, Statistics Canada said today.
Economists surveyed by Bloomberg forecast a January deficit of $1 billion. The Ottawa-based agency also increased its estimate for the December deficit, which was the first since 1976, to $652 million from an initially reported $458 million.
Canada’s trade balance has swung from a surplus of more than $5 billion in August as commodity prices dropped and U.S. consumers slowed purchases of cars and homes.
The mood was more optimistic overseas as investors in Japan and China took heart from renewed hopes of economic stimulus efforts.
Chinese Premier Wen Jiabao said the government is ready to roll out even more measures, while Japan's prime minister is calling for a new stimulus package.
The Canadian dollar gained 0.32 cents Friday to close at 78.58 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, seven were in negative territory to close the day and the week. Health-care stocks proved the biggest loser, off 1.7%, followed by metals and mining, down 1.5% and energy, down 0.7%.
The six winning groups were led by telecoms, up 2.3%, financials, ahead 1% and materials, up 0.9%.
The TSX Venture Exchange picked up 4.22 points to 847.64, while the Nasdaq Canada index trailed Thursday’s close 9.22 points to 407.42
ON WALLSTREET
New York's Dow Jones industrial average picked itself up by the scruff of the neck to gather 30.42 points in its favour to 7,200.48, for its fourth consecutive close north of breakeven.
The S&P 500 index gained 3.38 points to 754.12, while the Nasdaq composite index tacked on 2.16 to 1,428.26
Reports that Citi chairman Richard Parsons said his bank doesn't need additional government support after receiving three bailouts had earlier helped lift financial stocks.
Encouraging comments from Bank of America Corp.'s chief executive Ken Lewis added to the optimistic tone. Lewis said his bank was profitable in January and February. On Tuesday, news that Citigroup was having its best quarter since 2007 started the rally.
Uncertainty about the financial system's future has been the driving force behind the unrelenting selling that has plagued investors for weeks. Investors were also encouraged by signs that China may be ready to add to already announced stimulus efforts.
Analysts caution that this week's rally has also been fed by short covering, which occurs when investors are forced to buy stock to replace shares they borrowed and then sold on expectations of a decline.
AOL, a unit of media conglomerate Time Warner, named Google executive Tim Armstrong as its new president. The move was seen by analysts as an indication that Time Warner - the parent of CNNMoney.com - is eager to prepare the ailing AOL for a spinoff or sale.
The pharmaceuticals sector continued to rally one day after a series of mergers and other developments sent Pfizer and others higher. On Friday, Merck rallied 13% after an analyst at Sanford C. Bernstein upgraded the stock to "outperform" from "market perform," Reuters reported.
General Motors rallied for a second session Friday after saying Thursday that it won't have to take $2 billion U.S. in additional federal loans this month because its cost-cutting efforts have improved its cash position.
Fitch cut the credit rating on Warren Buffett's Berkshire Hathaway (BRKB) to AA+ from the top-tier AAA, citing worries about the company's investments and Buffett's tight grip on the company.
Dow stock General Electric was barely changed one day after a big rally. On Thursday, the stock surged even though S&P downgraded GE and GE Capital's top tier credit ratings to AA+ from AAA, with a "stable" outlook.
But Wall Street had been speculating that one of the major ratings agencies might issue a downgrade, and the stock had already slumped in anticipation of an announcement. GE shares rallied 12.7% Thursday.
Economically speaking, before the start of trading, the Commerce Department reported that the January trade deficit was $36 billion U.S. in January. That's the lowest figure since October 2002, when the trade deficit was $35.2 billion U.S.
A deficit of $38 billion was expected, according to a consensus of economists surveyed by Briefing.com. In December, the deficit was $39.9 billion U.S.
Also, the government reported that import prices were down 0.2%.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 2.95% from 2.84% Wednesday. Treasury prices and yields move in opposite directions.
The April crude contract on the New York Mercantile Exchange was down 19 cents to $46.84 U.S. after surging almost $5 U.S. a barrel on Thursday.
The April bullion contract in New York rose $6.10 to $930.10 U.S. an ounce
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