The Toronto stock market headed for a higher open Friday following moves by the European Central Bank to lighten the cost of borrowing for euro-zone countries by buying government bonds.
The S&P/TSX Composite index moved up 149.59 points, or 1.3%, to close Thursday at 12,139.73
The Canadian dollar regained 0.45 cents Friday morning to 102.20 cents U.S.
In corporate news, Lululemon Athletica Inc. reported quarterly net earnings were $57.2 million or 39 cents per share. That compared with net earnings of $38.4 million or 26 cents per share in the second quarter of fiscal 2011. The Vancouver-based activewear retailer also reported revenue up 33% to $282.6 million. It also raised its full year revenue projection.
North American markets registered solid gains Thursday in the wake of the European Central Bank’s move to get a grip on the euro-zone’s debt crisis.
The plan amounts to a commitment to buy unlimited amounts of short-term bonds from euro countries that request help. Ostensibly, the plan is meant to ease the financial pressures on Spain and Italy by giving them time to reduce their debt and reform their economies.
The ECB had been pressured to take action after Spain and Italy became the latest countries forced to pay yields in the seven per cent range on their benchmark 10-year bonds earlier this year, a level that raised worries those countries could be forced to seek a bailout.
The ECB plan seemed to be working Friday as Spain saw its cost of borrowing fall.
Investors think Spain will make a formal request to tap the new program within weeks, which could ease the pressures in the euro-zone’s fourth-largest economy.
ON BAYSTREET
The TSX Venture Exchange gained 12.03 points Thursday to 1,258.30.
ON WALLSTREET
U.S. stock futures lost steam Friday morning, following a disappointing jobs report.
Futures for the Dow Jones Industrials jumped 46 points, or 0.4%, to 13,121, about 30 minutes before the opening bell. Futures for the S&P 500 gained 6.6 points, or 0.5%, to 1,437.60, and for the Nasdaq, futures were higher by 2.75 points, or 0.1%, to 2,828.25.
Intel Corp lowered its guidance for third-quarter revenue, citing "weaker than expected demand in a challenging macroeconomic environment." Shares slid more than 2% on the news.
Shares of Pandora fell 13% after Apple announced that it plans to launch a competing live streaming music option.
Gunmaker Smith & Wesson Holding Corp reported earnings and raised its full-year forecast Thursday, sending shares surging more than 22% in premarket trading.
The U.S. Labor Department reported that 96,000 jobs were added in August, while the unemployment rate edged down to 8.1%.
Economists expected that employers would 120,000 jobs and that the unemployment rate would hold at 8.3%.
European stocks rose in morning trading, a day after the European Central Bank's bond plan announcement. Britain's FTSE 100 ticked up 0.3%, the DAX in Germany added 1.1% and France's CAC 40 gained 1.3%.
Asian markets surged on hopes that the Chinese government will take measures to stimulate the country's stagnating economy. The Shanghai Composite soared 3.7%, the Hang Seng in Hong Kong jumped 3.1%, and Japan's Nikkei rose 2.2%.
Oil for October delivery rose 55 cents to $96.08 U.S. a barrel.
Gold futures for December delivery fell $7.50 to $1,700.40 U.S. an ounce.
