Toronto stocks found new three-month highs after another upward session Friday.
In New York, bank stocks led the way higher today after Citigroup Inc. and General Electric Corp. became the latest financial companies to exceed profit expectations.
Toronto's S&P/TSX composite index marched forward 94.28 to end the day and the week at 9,437.65, a sixth straight week of gains.
Avenue Capital Group and Canada’s Fairfax Financial Holdings Ltd. may lend AbitibiBowater Inc. as much as $600 million to help the bankrupt newsprint maker restructure debt, the Globe and Mail reported.
The two firms, which agreed to give AbitibiBowater a $206-million emergency loan to help the company reorganize, could win $42 million in fees if the total $600 million is allocated, the report said, citing court documents.
GE Capital withdrew its bid to be one of AbitibiBowater’s lenders in the restructuring process, the Globe reported, citing people it didn’t identify.
The TSX financial sector was higher with Scotiabank up $1.09 at $34.43.
Royal Bank of Canada was ahead 75 cents to $43.10 after disclosing a $850-million U.S. goodwill writedown on its U.S. banking business. The move was not a surprise and does not affect RBC's capital ratios or cash flow.
The Toronto energy sector rose alongside higher oil prices. Suncor Inc. advanced 57 cents to $31.26 while EnCana Corp. gained $1.09 to $55.39.
The board of UTS Energy Corp. formally recommended that shareholders reject an improved hostile takeover bid from French oil giant Total SA. Total raised its offer earlier in the week from $1.30 per share to $1.75 per share. UTS stock was up two cents today at $1.85.
The TSX industrials sector strengthened as Canadian Pacific Railroad ran ahead $2.61 to $42.
The gold sector was down, as Goldcorp faded $1.23 to $32.87.
Canadian contract drug maker Patheon Inc. is expanding its Toronto plant to include production of oral contraceptives. Its shares rose two cents to $2.42.
Investors also took in news of lower inflation in Canada.
Statistics Canada reported that the annual inflation rate dipped to 1.2% in March, almost completely reversing the previous month's unexpected jump.
The agency said that food and shelter costs remain the main drivers of annual inflation in Canada, with the advance in the price of food rising 7.9% last month, the most since 1986.
The Canadian dollar lost 0.51 cents to 82.23 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 10 were positive, led by financial stocks, which leapt 3.1%, industrials, advancing 1.9% and energy, up 1.7%.
The three laggards were gold, down 2.9%, materials, off 1.7%, and health-care stocks, ending the downward 1%.
The TSX Venture Exchange picked up 7.10 points to 989.23 while the Nasdaq Canada Index added five points to 647.26
ON WALLSTREET
The Dow Jones Industrials average eked out a gain of 5.9 points to close out the trading week at 8,131.33
The S&P 500 index advanced 4.3 points to 869.60, while the Nasdaq gained 2.63 points to 1,673.07
Citigroup, widely considered the most troubled U.S. bank, said its loss per share in the first three months of 2009 was 18 cents U.S., narrower than the 34 cents U.S. analysts were predicting. Its stock moved down 17 cents to $3.84 U.S.
General Electric reported earnings per share of 26 cents for the same period, again ahead of analysts' expectations of 21 cents per share, and GE gained 16 cents to $12.43 U.S.
The results reinforced hopes in the markets that the worst of the economic downturn may be over.
Such views had enticed some investors back into stock markets in recent weeks. The rise in risk appetite has gained momentum over the last month or so as global equities have rallied to post their biggest gains in such a short space of time since 1933.
Citigroup's results followed similarly upbeat reports in recent days by JPMorgan Chase & Co., Wells Fargo & Co. and Goldman Sachs Group Inc.
Two other big banks, Bank of America Corp. and Morgan Stanley, will report results next week.
Regional Bank BB&T reported a weaker quarterly profit that nonetheless handily topped analysts' forecasts. The company also said loan losses are lessening. Shares gained 11%.
Google Inc. reported a first-quarter net profit of $1.42 billion U.S., up from $1.31 billion U.S. a year ago. Revenue rose 6% from the year-ago quarter but slipped 3% from the fourth quarter of last year. Earnings excluding special items came in at $5.16 U.S. a share, 23 cents higher than expectations and Google shares were up $2.50 to $391.24 U.S.
There was also further grim news from General Motors Corp.'s chief executive. Fritz Henderson says bankruptcy isn't the company's preferred option, but it's still probable, given the restructuring goals GM must meet to get more government loans. GM shares lost 10 cents to $1.84 U.S.
Treasury prices fell, raising the yield on the benchmark 10-year note to 2.94% from 2.83% Thursday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for May delivery rose 35 cents to settle at $50.33 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell $11.90 to settle at $867.90 U.S. an ounce.
