North American stock markets pulled back some of their gains, but remained positive, after the Fed released the methodology for its "stress tests" of 19 U.S. banks - which unearthed a new bout of potential gloom.
Toronto's S&P/TSX composite index roared through the closing bell Friday, picking up 120.67 points, to end the week at 9,530.17, its seventh straight positive week. Shares of base metals and materials were the main agents of growth.
Centerra Gold Inc. shares were ahead 16% to $7.23 after the company announced a new agreement with the government of Kyrgyzstan over its Kumtor mine in the Central Asian republic, giving the government one-third of the company.
SNC-Lavalin Group Inc. has acquired a 50-employee consulting engineering firm based in Santiago, Chile, for an undisclosed price. Shares rose 93 cents to $36.04.
The Canadian dollar jumped 0.95 cents to 82.68 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 10 were positive, metals and mining led the parade, with a 5.3% gain, followed by materials, up 4% and gold, up 3.9%.
Health-care stocks, led the losing groups, down 1%, followed by consumer staples, off 0.8% and utilities, subsiding 0.3%.
The TSX Venture Exchange picked up 18.87 points to 1,006.81 while the Nasdaq Canada Index improved 6.72 to 652.85
ON WALLSTREET
The Dow Jones Industrials average raced ahead 119.23 points to end up at 8,076.29
The S&P 500 index added 14.30 points to 866.22, while the Nasdaq Composite Index moved 42.08 higher to 1,694.29.
Stocks rallied Friday after Ford, Microsoft and American Express reported results that met or topped analysts' expectations.
The Nasdaq ended higher for the seventh week in a row, while the Dow and S&P 500 ended the week slightly lower after six straight weeks of gains.
The Fed report includes details which project a more pessimistic outlook for the U.S. economy next year, including a scenario that operates on 3.3% contraction in the U.S. economy this year, and only 0.5% growth next year, while unemployment is expected to sit at 10.3% at the end of next year.
Ford Motor, considered to be the healthiest of the three Detroit automakers, said it lost $1.4 billion U.S. in the first quarter as it contended with the worst quarter for the industry in 26 years.
Excluding special items, Ford said it lost $1.8 billion U.S., or 75 cents per share, versus a profit of 20 cents per share a year earlier. Analysts surveyed by Briefing.com thought it would lose $1.23 per share. Ford's revenue also plunged versus a year ago but topped estimates.
Ford CEO Alan Mulally said he believes the company can continue to function without receiving a federal bailout like rivals Chrysler and General Motors. Ford shares jumped 16% Friday.
Time is running out for Chrysler, which could enter Chapter 11 bankruptcy protection as soon as next week, according to reports, if it can't close deals with creditors and Italian automaker Fiat. Chrysler is privately owned.
Meanwhile, General Motors said late Thursday that it will temporarily shut down 13 of 20 North American plants this summer to cut inventory. The company has until June 1 to cut its debt and labor costs or face Chapter 11 as well. Shares gained 3% Friday.
After the close Thursday, Microsoft reported lower-than-expected quarterly sales on weaker earnings that met estimates. Shares of the Dow component gained 8% Friday.
Dow component American Express reported weaker quarterly earnings that topped estimates, also after the close Thursday. Shares gained 14% Friday morning.
Dow component 3M reported weaker quarterly sales and earnings Friday morning and cut its full-year earnings forecast for the second time. The company, which makes everything from Scotch tape to power lines, is seen as a proxy for the economy because of the broad range of its business. Shares gained 3%.
Amazon.com reported higher quarterly sales and earnings that topped estimates late Thursday. Shares gained 6.5% Friday.
Dow stock Honeywell reported weaker quarterly sales that topped estimates on weaker earnings that met estimates Friday morning. The company also cut its 2009 profit outlook, due to the global economic slowdown. Shares fell 4.5%.
Schlumberger reported weaker earnings that topped forecasts on weaker sales that missed estimates. The leading oilfield services company in the world also gave a dour forecast for the industry for the rest of this year and for 2010. Shares gained 7%.
Elsewhere on the economic front, the Commerce Department reported that new orders for manufactured durable goods in March decreased $1.3 billion U.S., or 0.8%, to $161.2 billion U.S.
The department also reported Friday that new home sales fell 0.6% last month to a seasonally adjusted annual rate of 356,000 from an upwardly revised 358,000 in February. Sales in February were originally reported at 337,000.
Economists were expecting a sales rate of 337,000, according to consensus estimates compiled by Briefing.com.
Treasury prices slumped, raising the yield on the benchmark 10-year note to 2.96% from 2.91% Thursday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose $1.94 to $51.56 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $7.50 to settle at $914.10 U.S. an ounce.
