Stock markets accelerated their climb in afternoon trading as TSX energy stocks led a broad gain, with better-than-expected job numbers furthering positive sentiment.
The S&P/TSX composite index closed the week with a bang, flying ahead 273.85 points to 10,240.90
Statistics Canada said the economy added 35,900 jobs in April, against market expectations of a 50,000 decline. However, all the added jobs were in self-employment, and the national unemployment rate remained at a seven-year high of 8%.
On the TSX, energy stocks gained as crude oil rose on the New York Mercantile Exchange.
The gold sector lost as the June bullion contract eased slightly.
Northgate Minerals Corp. saw first-quarter net earnings of $21.4 million U.S., up from $19.7 million U.S. a year ago on higher gold production at lower cash cost. Its shares gained six cents to $1.98.
Air Canada stock dropped 26% after a loss of $400 million for the first quarter, deepening year-earlier losses of $288 million. The company attributed the loss to a combination of reduced passenger travel and foreign exchange losses. Its shares lost 47 cents to $1.33.
Packaged meat and sandwich maker Premium Brands Income Fund said its first-quarter profit fell to $2.1 million from $3.4 million, although sales rose more than 10%. The market sliced four cents from its units to $9.20.
Cineplex Galaxy Income Fund said more patrons took refuge from economic gloom in its cinemas, generating first-quarter earnings of $3.7 million, reversing a year-earlier loss of $2.3 million. Cineplex units lost two cents to $15.20.
The Canadian dollar surged 1.61 cents, to 86.96 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 11 ended the day as gainers, led by energy stocks, ahead 5.8%, real-estate stocks, surging 3.8% and financials, up 3.6%.
The two laggards were telecoms, down 0.8%, and information technology, slipping 0.3%.
The TSX Venture Exchange tacked on 16.48 points to 1,069.59 while the Nasdaq Canada Index picked up 5.19 points to 706.09.
ON WALLSTREET
The Dow Jones Industrials average put on 164.80 points to end the day and the week at 8,574.65.
The S&P 500 index gained 21.84 points to 929.23, while the Nasdaq Composite Index improved 22.76 points to 1,739.
For the Dow and S&P 500, it marked the eighth up week in the last nine. For the Nasdaq, it would mark the ninth up week in a row.
Stocks have been rallying since early March, as investors have bet that the worst for the economy and financial sector has already happened. The S&P has jumped 36% since hitting a more-than-12-year low on March 9th.
In the United States, the pace of layoffs slowed in April to a six-month low of 539,000, but the unemployment rate climbed to 8.9%. Economists had expected 620,000 job losses, after 663,000 in March.
In other economic news, wholesale inventories shrank for the seventh consecutive month in March, falling to $411.7 billion U.S., the lowest in 16 months.
Investors also are cheering the results of the American government's "stress tests" of the 19 largest U.S. banks, released after the market close Thursday.
Though much about the results had been leaked, traders still seemed pleased, though the report said 10 banks would need to raise a total of about $75 billion U.S. in new capital if the economy worsened. There had been fears this number would be much larger.
All the stocks rose at least modestly as investors breathed a sign of relief that the results weren't worse. Citigroup climbed 7.4% to $4.09 U.S. after the Fed said it needs $5.5 billion U.S. in additional capital. Bank of America, determined to require $33.9 billion U.S., gained 4.2% to $14.08 U.S.
Bank of America was raised to "market perform" from "underperform" at Wachovia Corp. following the stress tests.
Fifth Third Bancorp, Ohio’s largest lender, soared 58% to $8.43 U.S. as the central bank said it must raise $1.1 billion. JPMorgan Chase & Co. climbed 8.3% to $38.15 U.S. after the bank passed stress tests without needing fresh capital.
McDonald’s Corp. added 2.7% to $54.81 U.S. The world’s largest restaurant company said global sales rose 6.9% in April as consumers sought cheaper food. Sales at U.S. restaurants open at least 13 months climbed 6.1%, while European orders rose 8.4%.
Lowe’s Cos. fell 3% to $19.75 U.S. The second-largest U.S. home-improvement retailer was cut to "equal weight" from "overweight" at Morgan Stanley, which said the stock has risen "too much, too soon."
Allstate Corp. slumped 6.9% to $25.70 U.S. The largest publicly traded U.S. home and auto insurer posted its third straight quarterly loss on investment writedowns and declines in private equity and hedge-fund holdings. Profit before investment losses was 84 cents a share, compared with the $1.25 estimate of 14 analyst surveyed by Bloomberg.
Before the market opened, Fannie Mae reported a $23.2-billion U.S. loss for its first-quarter and said it requested another $19 billion U.S. from the government.
Warren Buffett's Berkshire Hathaway is slated to issue its financial results after U.S. markets close.
Embattled insurer AIG said late Thursday that it narrowed its quarterly loss by 44% to $4.4 billion U.S. The stock inched higher Friday.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.28% from 3.32% Thursday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose $1.92 to settle at $58.63 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell 60 cents to settle at $914.90 U.S. an ounce.
