Equity trade in Canada’s biggest centre advanced on Friday to recoup most of the previous session's losses, led by broad gains in financials and mining firms as well as some positive earnings reports.
The S&P/TSX composite index moved higher 90.07 points to greet noon at 15,314.59
The Canadian dollar sank 0.73 cents to 82.11 cents U.S.
Month-end positioning and less-than-stellar quarterly results sent the index down 0.8% on Thursday, even as it climbed more than 2% overall during the month of April, bolstered in part by a rally in crude prices.
The most influential advancing stock on the index was Valeant Pharmaceuticals International Inc, which rose 2.4% to $268.01, after a slew of analysts raised their price targets.
The drug maker had raised its earnings and sales forecasts for the year on Wednesday. The overall healthcare group was up 1.5%.
Other top influencers include Toronto Dominion Bank, which rose 0.8% to $56.15, and Canadian National Railway, which advanced 1.1% to $78.74.
The resource-focused materials group also helped lift the index. Agnico Eagle Mines rose 7.1% to $39.10 after the gold mining company reported first quarter results that beat expectations.
On the downside, energy stocks slipped as Canadian Natural Resources was down 1% at $39.70.
On the economic slate, the RBC manufacturing Purchasing Managers’ Index for April indicated another difficult month for Canadian manufacturing companies, with output, new business and employment levels all decreasing last month.
Adjusted for seasonal influences, the PMI registered 49.0 in April, up only fractionally from 48.9 in March and below the neutral 50.0 value for the third month running.
ON BAYSTREET
The TSX Venture Exchange regained 0.95 points to 696.95
All but two of the 14 Toronto subgroups were ahead of the game by noon, with metals and mining advancing 3.3%, global base metals jumping 2.5%, and materials triumphing 1.7%
The two laggards were utilities, down 0.8%, and energy, off 0.2%.
ON WALLSTREET
U.S. stocks traded higher on Friday, recovering from Thursday's selloff, as investors kept an eye on higher Treasury yields and economic reports
The Dow Jones Industrials stayed positive 95.01 points – off its highs of the morning -- to 17,935.53, with Home Depot leading gains and Chevron the greatest of three laggards.
The S&P 500 index recovered 11.25 points to 2,096.76, with materials leading seven sectors higher and telecommunications the greatest decliner.
The NASDAQ repaired 29.04 points to 4,970.46
Auto sales come out throughout the day. General Motors and Ford reported stronger-than-expected U.S. auto sales, with GM sales up nearly 6% and Ford posting a 5.4% gain from the same month last year.
Fiat Chrysler and Nissan reported an increase of 5.8% and 5.7% respectively. Toyota missed expectations, up 1.8% versus an increase of 5.9%
Yum Brands spiked 5 percent to highs not seen since its spinoff from PepsiCo on news that Dan Loeb's Third Point took a significant stake in the firm. The hedge fund also announced a stake in Devon Energy.
Shares of tank car makers Greenbrier, Trinity Industries, Wabtec and American Railcar jumped on news of new oil railcar standards.
Chevron, Clorox and Public Service were among the few companies reporting before market open.
Oil and natural gas producer Chevron posted a 43% drop in quarterly profit on Friday due to low oil prices. The company reported net income of $2.57 billion U.S, or $1.37 per share, compared to $4.51 billion U.S, or $2.36 per share, in the year-ago period. Production grew 4% to 2.68 million barrels of oil equivalent per day.
Moody's earned $1.11 U.S. per share for its latest quarter, beating estimates by eight cents, with revenue also well above estimates. Its results were powered by strong increases in both debt rating and analytics revenue.
VF Corp. matched estimates with quarterly profit of 67 cents U.S. per share, with revenue very slightly below Street forecasts due to international weakness. However, the North Face and Timberland maker also increased its full-year earnings forecast.
Expansion in the U.S. manufacturing sector weakened in April as growth in output and new orders fell, according financial data firm Markit. The report said the final U.S. Manufacturing Purchasing Managers' Index fell to 54.1 in April from 55.7 in March. The preliminary read was 54.2.
On the back of disappointing first-quarter GDP data, April's manufacturing ISM index missed slightly, coming in at 51.5, unchanged from the previous month. The report was expected to show a modest rise to 52 that would follow five consecutive months of weakening.
Construction spending data for March showed a decline of 0.6%. The University of Michigan's consumer sentiment survey for April showed a final read of 95.9, up from 93.0 in March.
Prices for 10-year U.S. Treasuries fell, hiking yields to 2.11% from Thursday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil prices slid 77 cents to $58.86 U.S.
Gold prices remained negative $10.60 to $1,171.80 U.S.
