Stocks on Bay Street traded higher -- led by a surge in gold stocks -- as investors snapped up beaten down resource stocks while financial issues continued to decline following a pair of bank warnings earlier this week.
The S&P/TSX composite index was up 59.69 points to 7,784.45.
In earnings, Sears Canada Inc. reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 percent from the comparable period a year ago despite a tough retail environment.
Catalyst Paper Corp. shares fell after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
On the data front -- Statistics Canada reported the headline inflation rate eased last month to 2.6 percent, from 3.4 percent in September.
The Canadian dollar, meanwhile, was trading at 77.08 cents US, up 0.49 of a cent.
BAYSTREET
Five of the TSX sub-groups were trading higher -- gold stocks surged 17.36; mining issues ahead 2.66 percent and energy stocks gained 2.00 percent.
COMEX gold for December delivery rallied $19.30 to $768 US an ounce.
On the downside -- financial stocks were down 3.59 percent followed by a 3.48 percent drop in real-estate issues and a 2.73 percent slump in health-care stocks.
Meanwhile, the TSX Venture Exchange moved down 1.14 points to 690.81 and NASDAQ Canada stocks rose 19.44 points to 425.12.
ON WALLSTREET
U.S. stocks on Friday returned to modest gains after a brief dip into the red, with Citigroup's pummeled shares again bruising the financial sector.
The Dow Jones Industrial Average, up some 170 points earlier, was lately adding 25.6 points at 7577.85, and the S&P 500 was tacking on 1.26 points to 753.7 The Nasdaq was down 5.4 points at 1310.8.
Wal-Mart Stores Inc. edged 1.5 percent higher after the discount retailer unexpectedly named international chief Mike Duke to succeed Lee Scott as president and chief executive, effective Feb. 1.
Among financial firms -- government-controlled mortgage buyers Fannie Mae and Freddie Mac said they would cease foreclosures on some homes until January, as they give borrowers a chance to restructure their loans.
Analyst actions gave another big-cap tech name a lift, as Oppenheimer upgraded software giant Microsoft to outperform from perform and with a $22 price target on the stock.
After roaring higher Thursday, longer-dated U.S. Treasury securities were falling in price. The 10-year was losing 1-23/32 to yield 3.21 percent, and the 30-year was down 3-19/32, yielding 3.67 percent. The dollar was rising vs. the yen but falling against the euro and pound.
Crude oil was gaining 18 cents to $49.60 US a barrel.
