The Toronto stock market endured a sharply lower open Friday as prices for oil and copper declined.
The S&P/TSX Composite Index dipped 72.31 points to open Friday at 12,674.24
The Canadian dollar fell 0.59 cents to 96.53 cents U.S.
New Gold Inc. has reached a friendly deal to acquire Rainy River Resources Ltd., which has an advanced gold project in Ontario. The offer values Rainy River at about $310 million, net of its cash balance.
New Gold is offering $3.83 per share, which is than 40% above the recent market price. New Gold shares gave back 53 cents to $7.13, while Rainy River shares triumphed 97 cents, or 35.9%, to $3.67.
Canadian National Railway will also be in focus after JPMorgan Chase upgraded its stock to neutral from underweight with a target price of $110. The stock closed Thursday at $105.96, up 30% from its 52-week low. CNR shares added 16 cents to $106.12
In the economic docket, Statistics Canada said Canada’s Gross Domestic Product grew 0.2% in March, and on a quarterly basis by 0.6%, the fastest pace in six quarters, bolstered by a 1.5% increase in exports. On an annualized basis, GDP growth was around 2.5%, ahead of what experts projected.
ON BAYSTREET
The TSX Venture Exchange moved 1.38 points higher to 962.12
All but two of the 14 Toronto subgroups were lower at the outset, weighed by metals and mining stocks, down 1.7%, while gold slid 1.4%, and materials skidded 1.2%.
The two stalwarts proved to be health-care, 0.4% more robust, and information technology, inching ahead 0.2%.
ON WALLSTREET
U.S. stocks opened lower Friday, but the major indexes are on track to end the month with solid gains. So far this month, they're up between 3% and 4%, bringing their advance for the year to a hefty 16%.
The Dow Jones Industrials settled 36.59 points to begin Friday at 15,287.90
The S&P 500 index subtracted 2.41 points to 1,652. The tech-rich NASDAQ Composite shed 6.16 points to 3,485.13
In corporate news, NASDAQ said Netflix will join the NASDAQ 100 on June 6, replacing healthcare supplier Perrigo.
Lion's Gate shares rose after the media company said sales jumped 71% in the past fiscal year, helped by movies in the teen-oriented "Hunger Games" and "Twilight" franchises.
Shares of Palo Alto Networks plunged after the technology company swung to a big loss in the most recent quarter.
Economically speaking, investors close out the week with a handful of economic reports. The U.S. Commerce Department said both personal income and spending decreased slightly in April. Economists surveyed by Briefing.com had predicted a modest increase.
The latest edition of the Chicago Purchasing Managers' Index is also on tap for this morning, followed closely by a report on consumer sentiment from the University of Michigan and Thomson Reuters.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.13% from Thursday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices slumped 89 cents to $92.72 U.S. a barrel.
Gold prices sank eight dollars to $1,403.50 U.S. an ounce
