Stocks in Toronto got off to a respectable start in recovering lost ground Friday, amid mixed economic data.
The S&P/TSX composite index improved 26.18 points to open Friday at 13,320.38
The Canadian dollar shed 0.35 cents at 95.27 cents U.S.
There was also major acquisition activity in the resource sector as Talisman Energy Inc. reached a deal to sell its interests in two B.C. natural gas partnerships for $1.5 billion in cash. The buyer is Progress Energy Corp., a formerly independent Canadian company that's now a subsidiary of Malaysia's state-owned Petronas.
Talisman has said for months that it planned to sell a large chunk of its assets in order to be more efficient and profitable.
It was a relatively quiet day on the earnings front where Air Canada posted adjusted net income rose of $365 million, an increase of nearly 60% compared with that same time last year.
The adjusted earnings amounted to $1.29 per share, which was 26 cents per share above analyst estimates of $1.03 per share. Under standard accounting, Air Canada had $299 million or $1.05 per share of net income, also above estimates but down from last year.
Canada's largest airline recorded a 4.9% increase in system-wide passenger revenues, compared with the third quarter of last year.
On the economic front, Statistics Canada reported that the economy added 13,200 jobs in October - all of them full-time - and the unemployment rate stayed at a nearly five-year low of 6.9%
What’s more, data from the Canada Mortgage and Housing Corp showed housing starts hiked 198,282 units last month, up from an upwardly revised 195,929 in September and surpassing analysts' expectations for 190,800.
ON BAYSTREET
The TSX Venture Exchange inched higher 1.49 points to 932.57
All but three of the 10 TSX subgroups were positive at the outset, led by information technology issues, up 0.7%, while financials and energy prospered 0.6%.
The three laggards were materials, down 1%, while utilities slid 0.9% and health-care slipped 0.1%.
ON WALLSTREET
Stocks rose slightly early Friday, following a better-than-expected jobs report.
The Dow Jones Industrials hiked 36.83 points to begin Friday at 15,630.80
The S&P 500 index restored 1.54 points to 1,748.69. The NASDAQ reversed fortunes and took on 29.37 points to 3,886.70
Twitter shares fell nearly 3% on Friday morning, their second day of trading. Twitter shares closed at $44.90 U.S. on Thursday, a whopping 73% gain from its initial public offering price of $26 U.S.
Groupon shares rose despite disappointing earnings and a weak outlook.
Walt Disney reported slightly better-than-expected earnings and sales.
The U.S. economy added 204,000 jobs in October, according to the U.S. Labor Department. That is higher than the 120,000 estimate of economists Revisions showed an extra 60,000 jobs were created in August and September.
The gains came despite a partial government shutdown in October, which many economists had feared would hurt the economy.
Separately, the Commerce Department said personal income rose 0.5% in September, while spending edged up 0.2%.
The jobs report and other good economic news has revived speculation on when the Federal Reserve will begin scaling back, or tapering, its $85-billion-U.S.-per-month bond buying program. Many market experts believe the Fed's stimulus is a key reason why stocks have surged this year.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.74% from Thursday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices moved upward 42 cents to $94.62 U.S. a barrel.
Gold prices skidded $22.80 to $1,285.70 U.S. an ounce.
