Toronto's main stock index closed strong today driven by good Canadian deficit data and good earnings data, the strength of commodities and overall positive sentiment from U.S. data.
The S&P/TSX Composite closed up 103.07 points, or 0.85%, to 12,204.86.
In Economic News -- Canada's monthly budget deficit fell in July from the previous year when the government was spending billions to support the struggling auto industry.
The deficit totaled C$473 million ($459 million) in July, down from C$5.8 billion in July 2009 as expenses declined and revenues increased, the Department of Finance said on Friday in its monthly fiscal monitor report.
The average weekly earnings of Canadian workers rose at their fastest pace since early 2008, Statistics Canada reported Friday. The average earnings in July came in at $855.66 -- up 3.9% from the same month a year earlier. That's the biggest yearly gain since February 2008, the agency said.
Bank of Canada governor Mark Carney stated this morning that any decision by the American central bank to increase the American money supply would not effect the U.S. and Canadian monetary policy.
Merger News -- Just days before the shareholder vote, two California legislators have asked U.S. authorities to re-examine a proposed $3.3 billion merger between U.S.-based Valeant Pharmaceuticals International and Canada's Biovail Corp. The legislators believe that Valeant is working the merger to take advantage of tax breaks by becoming a Candian-based company.
Gold Stocks Mixed -- Gold-mining shares were mixed despite the bullion price rise. Schwartz said the sector's rally seemed "toppy" and it might be a good time to prune gold holdings.
Goldcorp fell .2% to $45.19, Kinross slipped .46% to $19.56. Barrick Gold rebounded to close up .1% to $48.28 and Agnico Eagle climbed .75% to $72.37.
Metals and Mining issues continue rolling -- The metals and mining subindex has gained 3.45% in early afternoon trading. Silver Wheaton is benefiting from the continuing rise in silver as it made a new 52-week high today by hitting $27.63.
The Battle Wages On -- BHP, the world's largest mining company, received antitrust clearance from the U.S. Federal Trade Commission to proceed with its $39 billion hostile bid for Potash. This is just the beginning, though, as BHP's offer is still contingent on more regulatory approvals. The hostile bid is likely to face more difficult scrutiny in Canada and also must cross the obstacle of Potash's shareholders.
The Blackberry Torch launch has been delayed in Canada and it will not be available today after all. Rogers now says it will be available starting Sept. 30th, Telus hasn’t stated a release date and Virgin Mobile will make it available on October 1st. RIM is under pressure to produce solid sales with its newest smartphone. Shares of Research in Motion are up .45% to $49.18 this morning.
Riding the Rails -- North American railway carload volumes have increased 12% year-over-year. Canadian National Railway is up 1.54% and Canadian Pacific Railway is up 1.45% this morning.
Enbridge expects to resume pumping oil through its downed U.S. Midwest pipeline early next week. Shares are up .62% this morning.
The Canadian dollar is moving up against the U.S. dollar and trading up .00902 of a cent to .976515 cents US.
ON BAYSTREET
Thirteen of the TSX Subgroups closed in the green today. Metals and mining led the way; up 4.27%, base metals closed up 2.82% and utilities finished up 1.91%.
Only one subgroup closed in the red as gold issues were down 1.09%.
The TSX Venture Exchange closed up by 11.52 points, to 1699.55, while the Nasdaq Canada index closed green as well; up 15.78 points to 619.10.
ON WALLSTREET
U.S. stocks closed strong fueled all day by bullish sentiment on housing and durable good data from this morning. Despite political rhetoric, most analysts are behind the idea that the market is going to move upward still. It was also announced that voting on tax cut extensions will not be happening until after November 2nd elections.
U.S. sales of new homes were flat in August, at the second lowest level ever as the housing market continues sluggishly to recovery.
S&P in the limelight -- The S&P up 9.5% so far in what is historically then worst month of year for the index.
The Dow Jones Industrial Average closed up 197.84 points, or 1.86% at 10,860.26. The S&P 500 closed up by 23.84 points, or 2.12%, to 1148.67. The NASDAQ closed green as well; up 54.14 points, or 2.33%, to 2381.22.
All 30 Dow components were higher throughout the session, led by Caterpillar; up 4.55%, Alcoa; up 3.92% and General Electric; up 3.22%.
From a Different Perspective -- Petrobras closed only slightly down even with the largest offering on record; closing down $.67, which gives inspiration that IPO's may once again be coming to life.
Liberty Mutual will IPO next week and will provide a benchmark upon which new IPO's can be measured for sentiment.
Target also announced that it will now carry 4 models Apple products for the holidays, making it a leading carrier of the tech giant's products.
Homebuilders doing well -- KB Homes is up 1.45% on quarterly losses being narrowed and Hovnanian Enterprises is up 1.33%.
Nasdaq big caps still pushing hard – Amazon is moving again on raised estimates; up 2.96% to $157.38. Apple continues making new highs; up to $291.77 this morning and Tibco is up on solid earnings; up 11.73% to $18.29.
Chips doing well -- ARM Holdings is up 6.14% ARMH, while shares of AMD are up 4.67% to $6.70.
MOT Stock Split? -- Motorola Inc. said Friday it will hold a special meeting of stockholders on Nov. 29 to approve a reverse stock split for Motorola Solutions, the company that will be created when the company divides itself into two firms. MOT is proposing a stock split ratio ranging from 1-for-3, through 1-for-7 shares. The final decision will be made by the Board of Directors. Motorola believes the split will improve the liquidity and marketability of the stock. Shares of MOT are up 2.3% to $8.55 this morning.
Among stocks in focus -- Nike is moving on a good report after the close yesterday; up 3.62% to $80.48.
Netflix continues its ascent this morning; up 3.29%.
Vical is dropping hard on news of new offering. VICL is down 20.03% to $2.30.
Gold smashes to new high -- Gold for December delivery are trading this morning at $1,296.50 after briefly breaking through $1,300 last night to $1,301.30. Spot gold also hit an all-time high of $1,299.65 and is currently trading at $1,298.925.
The US Dollar is dropping against the euro this morning; down .0149 and losing ground to the yen; down .1100.
Oil futures for November delivery are up $.60 this morning to $75.76 a barrel.
Bonds: The yield on the 10-year bond increased .5700 to $2.6120%.
