Equities in Canada’s main stock market opened higher on Friday in a broad rally led by materials stocks cheered by a Chinese rate cut that boosted prices for base metals, while shares of embattled Valeant Pharmaceuticals International Inc also bounced.
The S&P/TSX composite index gained 85.97 points to begin Friday trading at 13,964.08
The Canadian dollar demurred 0.58 cents at 75.8 cents U.S.
Thomson Reuters Corp reported higher quarterly net profit even as revenue dipped, hurt by foreign currency, and it reaffirmed its full-year forecast. Third-quarter net earnings were $293 million, or 36 cents per share, compared with $250 million, or 28 cents per share, a year ago. Adjusted for special items, earnings were 52 cents per share.
Reuters stock dropped 37 cents to $54.97.
The controversy surrounding Valeant Pharmaceuticals’ strategy and its market slide this week are bad news for Wall Street investment banks that stand to lose one of their best clients. The company has emerged as the fifth largest payer of investment banker fees over the past three years thanks to its rapid acquisition-driven and debt-financed expansion that has made it a darling of investors.
Valeant shares tried to move out of the valley in which they were situated, growing $11.20, or 7.8%, to $155.25.
CIBC cut the target price on Corus Entertainment Inc to $15 from $16.50 as the company, for the first time, reported quarterly results that met or exceeded expectations.
Corus shares inched up a penny to $12.43.
CIBC raised the target price on Rogers Communications to $54.00 from $50.00 after the company’s third-quarter results that were essentially in line on consolidated revenue and EBITDA, but ahead on basic EPS owing to a lower tax rate.
Rogers – whose Toronto Blue Jays play game six tonight in their American League Baseball Championship series – gained 34 cents a share to $52.59.
BMO initiated coverage on TransCanada Corp at outperform and $56.00 target price, believes the company’s growth guidance could be significantly enhanced or extended.
TransCanada shares settled 26 cents to $44.64.
Canadian Utilities reports Q3 earnings, expecting 39 cents per share. Utilities shares sprang up 48 cents, or 1.3%, to $37.50.
On the economic front, Statistics Canada reported that the consumer price index rose 1.0% in the 12 months to September, after increasing 1.3% in August. On a seasonally-adjusted monthly basis, the Consumer Price Index decreased 0.2% in September, after posting no change in August.
ON BAYSTREET
The TSX Venture Exchange moved higher 1.88 points to 549.63
All but two of the 13 TSX subgroups were higher, as health-care issues were 2.4% haler, with financials growing 1.1%, information technology up 1%.
The two laggards were energy, off 1.3%, and gold, dimmer by 0.4%.
ON WALLSTREET
U.S. equities traded sharply higher Friday after the Chinese central bank cut interest rates and after three tech giants posted better-than-expected earnings.
The Dow Jones industrial average climbed 121.2 points to 17,610.36, led higher by Microsoft and with Chevron leading decliners.
The S&P 500 picked up 21.49 points, or 1.1%, to 2,074, with information technology leading seven sectors higher as utilities led decliners.
The NASDAQ index hiked 97.65 points, or 2%, to 5,017.7
The People's Bank of China cut interest rates for the sixth time since November to 4.35%, effective Oct. 24.
Investors also digested a new batch of earnings, including reports from tech giants Alphabet, Amazon and Microsoft, all of which beat analysts' expectations.
Alphabet beat estimates by 14 cents U.S., while Amazon posted earnings per share of 17 cents. Wall Street expected the Jeff Bezos-run company to report a loss of 13 cents U.S.
Microsoft posted a beat on both earnings and estimates and accounted for 31 points of the Dow's gains. It also hit its highest levels since March 2000.
Amazon, Facebook and Alphabet all hit all-time highs.
Other companies that have reported include Procter and Gamble and VF Corp.
Procter posted better-than-expected earnings per share, but fell short on revenue. VF Corp. missed analysts' expectations on both earnings and revenue.
On the data front, investors took in the latest manufacturing Purchasing Managers’ Index data, which came in at 52, below the expected 52.8.
Prices for 10-year U.S. Treasuries staggered, raising yields to 2.08% from Thursday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices slumped 97 cents a barrel to $44.41 U.S.
Gold prices slid $4.28 to $1,161.77 U.S. an ounce.
