Toronto stocks enjoyed a slightly higher open on Friday, with continued focus on whether the U.S. Federal Reserve will taper its stimulus program as soon as next month.
The S&P/TSX composite index gained 34.61 points to open the week’s final session at 12,739.13
The Canadian dollar slumped 0.41 cents to 96.64 cents U.S.
RBC cut the rating on Fortress Paper Ltd. to underperform from sector perform, saying the company faces risks from potentially crippling anti-dumping duties that may be imposed by China. Fortress shares gave back 28 cents to $7.38.
RBC cut the target price on NorthWest Healthcare Properties REIT to $13 from $14 following the company's second-quarter results that were much in line with expectations. NorthWest units took on seven cents to $10.62.
CIBC cut the rating on Rocky Mountain Dealerships Inc. to sector performer from sector outperformer, expecting that the transition to Tier-4 regulated engine equipment is going to lower customers' demand for new equipment and will negatively impact the company's sales. Rocky shares were unchanged at $11.88.
On the economic ledger, Statistics Canada reported this morning that folks offshore reduced their holdings of Canadian securities by $15.4 billion in June, the largest reduction in nearly six years.
Meanwhile, Canadian investors kept buying foreign securities, adding $3.7 billion to their portfolios in June.
The nation’s number crunchers also reported that manufacturing sales declined 0.5% to $48.2 billion during the same month, the fourth decrease in six months,
ON BAYSTREET
The TSX Venture Exchange gained another 2.92 points to 935.02
Nine of the 14 Toronto subgroups were higher at the outset, powered by 0.8% rises for consumer discretionary, metals and mining and energy issues.
The five laggards were weighed by global base metals, down 0.3% and materials and gold, down 0.2% each.
ON WALLSTREET
It's looking like stocks will suffer their second consecutive week of losses.
The Dow Jones Industrials faded 0.35 points soon after the open to 15,111.80, after a 200-point-plus pasting Thursday.
The S&P 500 index inched up 0.67 points to 1,661.99. The NASDAQ eked up 5.05 points to 3,611.17
For the week, all three indexes are down between 1.5% and 2%.
Questions about the Federal Reserve's next move continue to remain unanswered. Many traders think the Fed will start to taper its $85 billion U.S. in monthly bond buying sooner rather than later.
Investors are also growing nervous about the health of the consumer in light of weak earnings from a number of retailers.
Nordstrom was the latest to disappoint. The upscale department store's revenue came in short of forecasts and it also offered weak guidance for the remainder of the year, sending shares lower.
Dell reported solid quarterly results after the close Thursday, though shares fell slightly in after-hours trading. The company's future is still in limbo as founder Michael Dell attempts to take it private.
Prices for the 10-year U.S. Treasury fell, raising yields to 2.79% from Thursday’s 2.76%. Treasury price and yields move in opposite directions.
Oil prices gained 51 cents to $107.84 U.S. a barrel.
Gold prices gained another $1.20 to $1,362.10 U.S. an ounce.
