Markets in Toronto began Friday in the green Friday, responding to wholesale and inflation data.
The S&P/TSX composite index recovered 45.78 points to open the week’s final session at 15,250.26
The Canadian dollar regained 0.21 cents to 93.14 cents U.S.
Royal Dutch Shell has suspended development of a liquefaction unit at Canada's Jumping Pound facility, which was to be used to develop the emerging gas for transport market.
Morgan Stanley, Canaccord Genuity, Barclays and NBF upped their targets on Canadian Pacific Railway’s stock, which sprang up $4.66, or 2.3%, to $206.99.
Canaccord Genuity raised the rating on IBI Group to speculative buy from hold. IBI Group gained 5.5 cents to $1.74.
Economists expect Canada’s economy will grow a bit more slowly than previously thought over the next two years, but they also expect inflation to stay near the central bank's 2% target.
On the economic front, Statistics Canada reported this morning that consumer prices rose 2.4% in the 12 months to June, following a 2.3% increase in May. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.3% in June, after rising 0.2% in May.
What’s more, the agency reported that the wholesale trade perked once again in May, rising 2.2% to $52.6 billion, a second consecutive increase. While higher sales were recorded in four subsectors, representing the bulk of wholesale sales, the motor vehicle and parts subsector accounted for most of the gain. Excluding this subsector, wholesale sales rose 0.7%.
ON BAYSTREET
The TSX Venture Exchange gained 2.28 points to 1,008.04.
All but four of the 14 Toronto subgroups were higher, industrials accelerating 1.1%, while information technology gained 0.8%, and energy powered higher by 0.6%.
The four laggards were weighed by gold, off 1.2%, metals and mining, down 0.7%, and materials, sliding 0.6%.
ON WALLSTREET
The U.S. stock market is showing signs of resistance despite multiple flare-ups around the globe, most recently in Ukraine and Gaza.
The Dow Jones Industrials moved up 53.60 points to 17,030.41.
The S&P 500 progressed 8.84 points to 1,966.46, and the NASDAQ composite triumphed 32.71 points to 4,396.16
Drug makers AbbVie and Shire announced jointly their plans to merge on Friday. The $54-billion U.S. acquisition is the latest by a U.S. firm looking to move its tax base overseas to save money. Abbievie stock was flat, while Shire shares were up 3% in London.
Such mergers have become more frequent lately, and critics argue that they should be banned. Others, however, say the rise in inversion deals is yet another sign of the urgent need for corporate tax reform.
Google shares rallied 2% after the tech firm reported another quarter of surging sales growth after the bell Thursday, driven by 25% increase in ad viewing compared to the year earlier. News that Japan's Softbank has hired away Google's global sales chief Nikesh Arora may also being piquing investor interest.
Honeywell rose after its second quarter earnings beat expectations thanks to a 6% uptick in sales. The company also raised its profit outlook for the year.
But shares of General Electric, another manufacturing powerhouse, fell Friday even though the conglomerate reported growth in second quarter revenue and earnings, buoyed by a solid jump in its industrial segment.
Thursday's drama started after news broke of downed Malaysian airliner flight 17 over an area of Ukraine controlled by pro-Russian rebels, of whom many in Ukraine and the West blamed for the incident. Market tensions stabilized after the event, but were then exacerbated after Israel sent ground troops into Gaza.
The U.S. believes Flight MH17 was brought down by a surface-to-air missile over a region that has seen heavy fighting between pro-Russian separatists and Ukrainian government forces.
Analysts say the tragedy could damage business confidence, particularly in Europe, but may also bring the crisis in Ukraine to a head by increasing the pressure on Moscow to resolve the conflict.
Prices for 10-year U.S. Treasuries were unchanged, keeping yields at Thursday’s 2.48%.
Oil prices sank 37 cents to $102.82 U.S. a barrel.
Gold prices plummeted $8.50 to $1,308.40 U.S. an ounce.
