Canada's main stock index dropped some of its strength on Friday on fears that the U.S. Federal Reserve is considering an early decrease of its $85-billion monetary stimulus program.
The S&P/TSX composite index was negative 9.50 points, to begin Friday at 12,648.59
The Canadian dollar dropped a quarter of a cent to 96.84 cents U.S.
RBC raised the target price on Computer Modelling Group Ltd. to $25 from $24 on the company's solid fourth-quarter earnings. Modelling shares gained 28 cents to $23.38
RBC raised the target price on Enbridge Inc. to $56 from $50, says the company's shares should close the valuation gap with Inter Pipeline Fund and Pembia Pipeline Corp as all three companies have similar liquids infrastructure businesses that are generating above-average growth.
Enbridge shares began the day at $48.06, or six cents lower than Thursday’s close.
There is no economic news due out today.
ON BAYSTREET
The TSX Venture Exchange gathered 2.63 points to 944.68
In all, nine of the 14 Toronto subgroups were negative in the session’s first hour, weighed jointly by global base metals and health-care issues, each down 0.7%, while metals and mining slid 0.3%.
The five gainers were again led by gold, up 0.5%, while telecoms improved 0.3% and information technology took on 0.2%.
ON WALLSTREET
U.S. stocks were under pressure for a third straight day Friday, as worries about the Federal Reserve continue to hang over the market.
The Dow Jones Industrials hurtled earthward 75.29 points to begin the week’s last session at 15,219.20
The S&P 500 index was down 10.11 points to 1,640.40. The tech-rich NASDAQ Composite fell 24.98 points to 3,434.44
Markets in the U.S. will be shuttered Monday for Memorial Day.
The S&P 500 is on track to end lower for the week, which would snap a string of four up weeks in a row.
Stocks have been volatile the past few days as investors wrestle with what appears to be a growing debate within the Federal Reserve over the central bank's bond buying program.
With the major gauges up about 15% for the year, some investors have speculated that the market is on the verge of a long-awaited pullback. But others say the market will continue to grind higher as investors on the sidelines look for opportunities to get in on the rally.
Shares of Dow component Procter & Gamble rose after the company ousted CEO Bob McDonald and replaced him with his predecessor, A.G. Lafley. The company had been under pressure from activist investor Bill Ackman to make the move.
Pandora jumped more than 12% after the music site reported better-than-expected revenue and a slightly smaller-than-forecast loss after the close Thursday.
But shares of two well-known retailers plunged on weak results. Sears Holding and Abercrombie & Fitch sank after reporting larger than expected losses in the most recent quarter.
Shares in Salesforce.com slid nearly 7% as the company offered a weak 2014 outlook. Gap shares also fell on weak guidance.
In economic news, new orders for durable goods rose 3.3% in April, following a drop of 5.9% in March, according to the U.S. Commerce Department. Economists had predicted a 1.6% rise.
Prices for the 10-year U.S. Treasury inched upward, driving yields down to 2% from Thursday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices faded $1.02 to $93.23 U.S. a barrel.
Gold prices shed $5.60 at $1,386.20 U.S. an ounce
