The Toronto Stock Exchange pushed higher Friday as commodity prices bounced back, overshadowing a disappointing report about U.S. new home sales that sent New York markets into a retreat.
The S&P/TSX Composite Index approached higher by 74.10 points to 12,435.91.
The Canadian dollar jumped back above parity with its U.S. neighbour, tacking on 0.07 cents at 100.14 cents U.S.
The energy sector was up with shares in Canadian Natural Resources falling 16 cents to $33.64.
Meanwhile, Pengrowth Energy Corp. plans to take over NAL Energy Corp. in stock-swap deal that values NAL at some $1.9 billion, including debt.
Based on Thursday’s closing prices of $9.95 for Pengrowth stock and $7.80 for NAL shares, the offer represents a premium of 9.7%. Shares in Pengrowth fell 2% or 20 cents to $9.75, while shares in NAL rose 6.4% or 50 cents to $8.30.
On the TSX, the gold-heavy materials index rose with shares in Barrick Gold Corp. up 88 cents to $43.91.
Copper prices added a cent to $3.78 U.S. The mining sector added strength with shares in Teck Resources up 11 cents at $35.16.
On the economic ledger, Statistics Canada reported that the country's inflation rate rose to 2.6% in February. Even after stripping out volatile food and energy items, the rate rose 2.3%, which is above the Bank of Canada's target. That’s the fastest pace of price increases since 2008, said some experts
ON BAYSTREET
The TSX Venture Exchange picked up 8.99 points to 1,549.74, while the Nasdaq Canada index regained one point to 411.75
All but one of the 14 Toronto subgroups were ahead at noon ET. Gold gained 2.1%, while materials advanced 1.6% and global base metals roared ahead 1.2%.
Only a 0.1% backtracking by health-care issues kept things from being unanimous.
ON WALLSTREET
In New York, stocks reversed direction by midday Friday, after a faltering start, taking into account the latest report on home sales, which signaled further trouble for the housing market.
The Dow Jones Industrials regained 35.38 points to break for lunch at 13,081.50
The S&P 500 re-strengthened 3.80 points to 1,386.58, while the Nasdaq subtracted 4.17 points to 3,059.15
The S&P 500 is down 0.8% on the week, and a lackluster performance Friday could solidify the index's first weekly loss since early February.
The report on new home sales came in short of forecasts, giving investors yet another reason to hit the pause button.
Home builders took a bit hit, too. KB Home reported earnings showing a sharp drop in earnings and new home sales. Shares of KB Homes dropped sharply, as did other major home builders including PulteGroup, Lennar and Toll Brothers
The latest data follow several mediocre reports released earlier this week on existing home sales and new home construction. Bucking the trend, a report on building permits was the strongest in more than three years.
And, while mortgage rates rose this week, they remain relatively cheap. Analysts are hoping that the improving jobs picture will help lift the housing market.
Bank of America announced a pilot program that would allow delinquent homeowners to relinquish the deed to the property and transition to tenant status. Only 1,000 homeowners are eligible for the pilot.
Darden Restaurants, which operates chains such as Red Lobster and Olive Garden, posted quarterly earnings of $1.25 U.S. a share on $2.16 billion U.S. in revenue, slightly better than analysts had expected.
Shares of homebuilder KB Home plummeted 11%, after the company reported a loss of 59 cents per share, more than double analysts' expectations. The company also fell short of expectations in reporting $254 million U.S. in revenue.
In matters economic, new home sales for February came in at an annual rate of 313,000 come below the 323,000 forecast by analysts, and down from a rate of 321,000 in January.
The price on the benchmark 10-year U.S. Treasury gained, pushing the yield lower to 2.24% from 2.28% Thursday. Treasury prices and yields move in opposite directions.
Oil for May delivery gained $1.81 to $107.16 U.S. a barrel.
Gold futures for April delivery rose $14.80 to $1,656.70 U.S. an ounce.
