The Toronto stock market registered a solid gain for a second consecutive session Friday as investors built on strong manufacturing data from China.
The S&P/TSX composite index gained 87.95 points Friday to end the week at 12,762.30, on top of a 101-point gain Thursday after HSBC Corp.'s preliminary purchasing managers’ index showed an expansion in China's manufacturing in August.
Traders took that as evidence that the world's second-largest economy may be over its recent weakness.
The Canadian dollar muscled its way higher 0.15 cents to 95.23 cents U.S.
The gold sector jumped as Iamgold improved by 38 cents, or 5.7%, to $7.05 while Barrick Gold Corp. climbed 54 cents to $21.11.
The base metals component rose while September copper was up two cents at $3.35 U.S. a pound. Lundin Mining gained 12 cents to $4.77 and Teck Resources added 26 cents to $27.59.
The energy sector gained strength with Suncor Energy climbing 68 cents to $36.06.
Financials were also positive ahead of earnings reports next week from most of the big Canadian banks. TD Bank was ahead 84 cents to $88.81.
In other corporate news, Maple Leaf Foods Inc. is selling its Rothsay business unit to Darling International Inc. of Irving, Texas. The Rothsay business operates six rendering plants and a biodiesel plant employing a total of 550 in four provinces.
Maple Leaf says it will receive about $645 million for Rothsay and use the money to pay down corporate debt and its shares gained $1.05 or 7.8% to $14.44.
Offshore, road-based domestic demand drove the strongest German quarterly expansion in more than a year between April and June, fuelling optimism Europe's largest economy will outperform in 2013 and support the faltering euro-zone recovery.
Meanwhile, in Canadian economic news, Statistics Canada reported that the consumer price index rose 1.3% in the 12 months leading to July following a 1.2% increase in June. On a seasonally adjusted monthly basis, the Consumer Price Index rose 0.2% in July, matching the increases in May and June.
ON BAYSTREET
The TSX Venture Exchange powered up 11.52 points to 946.56
All 14 Toronto subgroups were higher, climbing on the back of gold stocks, ahead 2.7%, materials, gaining 1.6%, and the metals and mining sector, up 0.9%.
ON WALLSTREET
Microsoft's stock is soaring following news that its CEO Steve Ballmer will retire within the next 12 months.
The Dow Jones Industrials added 46.77 points Friday to 14,973, to wind up the week at 15,010.50
The S&P 500 index gained 6.48 points to 1,663.44. The NASDAQ hiked 19.09 points to 3,657.79
The Microsoft news kept the NASDAQ in positive territory and will make it likely that the index ends the week up nearly 1.5%.
The Dow, despite moving slightly higher Friday, is on track for its third straight week of losses. The S&P 500, up for the day, should end the week slightly higher.
Market action appeared to be glitch-free, a relief one day after technical troubles shut down trading in all NASDAQ-listed stocks and options for several hours.
"Mr. Softee", as the company is colloquially known, found its shares up 7% following the Ballmer news. Microsoft is one of the 30 stocks in the Dow and one of the largest companies listed on the NASDAQ, so its big move was helping to lift the broader market.
As for the company that runs the exchange, NASDAQ shares gained more than 1%, after dropping more than 3% following Thursday's trading glitch.
Facebook's shares soared, topping $40 U.S. for the first time since its IPO day.
Aeropostale shares plummeted after the teen retailer posted weak results. Its poor outlook follows similarly bleak forecasts from rivals American Eagle Outfitters and Abercrombie & Fitch.
Pandora reported strong earnings, but the stock fell after the online radio company issued softer-than-expected guidance.
U.S. stocks closed higher Thursday even after NASDAQ's trading snafu. Late Thursday, U.S. Securities and Exchange Commission Chair Mary Jo White said the trading halt "should reinforce our collective commitment to addressing technological vulnerabilities of exchanges and other market participants."
The SEC plans to speed up its efforts for new rules to strengthen markets. White said she intends to hold a meeting soon with leaders of the major exchanges and other market participants.
Prices for the 10-year U.S. Treasury spiked, weighing yields down to 2.82% from Thursday’s 2.90%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.35 to $106.38 U.S. a barrel.
Gold prices leaped $25.70 to $1,396.40 U.S. an ounce.
