The Toronto stock market pulled into positive territory Friday, as investors appeared to shrug off worries about the knock-on effects from the U.S. economy going over the so-called fiscal cliff.
The S&P/TSX composite approached noon Friday up 56.49 points to 12,247.54
The Canadian dollar took on 0.07 cents to 100.04 cents U.S.
The fiscal cliff label refers to a string of tax increases and steep spending cuts to the tune of $600 billion U.S. set to go into effect at the end of the year unless Democrats and Republicans can come together and arrange a deficit-cutting compromise. Failure to do so would likely tip the U.S. back into recession, and drag down other economies with it.
U.S. President Barack Obama was set to make some remarks on dealing with the fiscal cliff at 1 p.m. EST.
Bank of Canada Governor Mark Carney says the fiscal cliff is the most imminent threat facing the Canadian economy.
The TSX telecom sector was positive as Telus Corp. reported its net profit rose eight per cent to $351 million or $1.08 per share.
Overall revenue was up 5.8% to nearly $2.8 billion, up about $200 million from just over $2.6 billion in the third quarter of 2011. Overall wireless revenue was up 7% from a year ago, rising by $104 million to $1.5 billion and its shares were up 72 cents to $64.25.
Financials were also positive as Scotiabank rose 27 cents to $53.78.
The resource sectors declined while commodity prices fell, depressed by demand concerns and the higher greenback.
The energy sector was down as Suncor Energy gave back 18 cents to $33.13.
Copper, viewed as an economic barometer as the metal is used in so many applications, dropped five cents to $3.42 U.S. a pound and the base metals sector was off
But the gold sector was slightly higher as Kinross Gold Corp. advanced 11 cents to $10.27.
On the corporate front, the top executive at home improvement retailer Rona is leaving the company. The departure of Robert Dutton comes 20 years after he became Rona’s president and chief executive in 1992. It also comes just months after the company fended off a takeover by American rival Lowe’s. Rona shares ran ahead 73 cents to $10.08.
TMX Group Ltd., the owner of the Toronto Stock Exchange, has issued its first financial report since undergoing a strategic reorganization that included the acquisition of the Alpha Trading and CDS businesses and a new ownership structure led by the Maple Group.
It posted $15.3 million of net income, or 53 cents per share and $113.4 million of revenue over the two months following the reorganization. Its shares gave back 56 cents to $48.10.
ON BAYSTREET
The TSX Venture Exchange eked up three points to 1,301.68
All but three of the 14 Toronto subgroups were higher by the lunch hour. Global base metals moved highest, fastest at 1.1%, while telecoms charged ahead 0.9%, and information technology gained 0.8%.
The three laggards were gold, off 0.4%, health-care, down 0.2%, and utilities, sliding 0.1%.
ON WALLSTREET
U.S. stocks clung to gains Friday as investors signaled an unwillingness to place any big bets ahead of President Obama's speech about the U.S. economy later this afternoon.
The Dow Jones Industrials acquired 76.61 points to break for lunch at 12,887.90
The S&P 500 moved up 12.63 to 1,390.14, and the Nasdaq Composite Index strengthened 35.10 points to 2,930.68
The S&P 500 is currently hovering around its 200-day moving average of 1,383, a level that investors see as a line separating a bear and bull market.
On the corporate front, J.C. Penney reported a much larger than expected loss, sending its shares down 6%. It marked the third straight quarter of bigger than forecast losses at J.C. Penney as new CEO Ron Johnson struggles to remake the company.
After the closing bell Thursday, Disney reported earnings in line with analyst expectations but sales of the entertainment company were a bit short of forecasts.
Shares of daily deals site Groupon plunged 28% Friday, a day after quarterly results missed expectations.
In other corporate news, Kayak announced late Thursday that it was being purchased by Priceline in a $1.8-billion U.S. cash-and-stock deal. Shares of Kayak shot up 26% to just below the $40 U.S. a share purchase price. Shares of Kayak competitor Expedia dropped 1%, while TripAdvisor another rival, edged slightly higher.
Shares of Lions Gate surged after the maker of the "Hunger Games" said the movie's sales helped lift revenue 97% for the quarter. The movie company also swung to a profit in the quarter, after recording a loss last year and said it expects to meet or beat expectations for the remainder of the year.
In economic news, the U.S. Bureau of Labor Statistics released figures on October export prices that rose 0.2% compared to 0.7% the prior month. Import prices rose 0.3% in October compared to 0.2% the prior month.
A report on consumer sentiment came in significantly better than expected. The University of Michigan's preliminary version of its consumer sentiment index for November came in at 84.9, topping forecasts of 82 and up from 82.6 last month.
Wholesale inventories for September also increased by 1.1%, beating forecasts for a 0.4% increase.
The price on the benchmark 10-year U.S. Treasury sagged a bit, raising the yield to 1.64%, from 1.63% late Thursday. Treasury prices and yields move in opposite directions.
Oil prices recovered 72 cents at $85.81 U.S. a barrel.
Gold prices jumped $7.30 an ounce to $1,733.30 U.S.
