Blue chips in Toronto reversed course to end higher on Friday -- as investors shrugged off data that showed a massive drop in employment in the United States and Canada last month and news that Royal Bank reported a 15 percent decline in profit.
The S&P/TSX composite index was up 59.21 points to 8,117.03.
Canada's largest bank reported a 15 percent decline in quarterly profit. The Royal Bank of Canada earned $1.12 billion in the fourth quarter of the banking year, down from $1.32 billion a year earlier. Revenue sagged 10 percent to $5.07 billion.
In other earnings -- Laurentian Bank reported Friday a fourth-quarter profit of $27.3 million, down slightly from a year-ago $30.2 million and said its full-year earnings came in at a record $102.5 million. The Montreal-based bank said its earnings for the quarter ended Oct. 31 amounted to $1.02 per share, versus $1.14 per share in the year-ago period.
West 49 Inc. reported a profit of $2.1 million in the back-to-school quarter, down from $2.6 million a year earlier. But the action-sports retailer said Friday its sales grew to $61.7 million in its third quarter ended Oct. 25, up 4.4 percent from a year earlier, as same-store sales advanced 2.1 percent.
On the data front -- Statistics Canada reported the economy shed 70,600 jobs last month, against the 20,000 expectation, and the unemployment rate rose to 6.3 percent from 6.2 percent. The job losses included 66,000 in Ontario.
Down south -- The Labor Department said U.S. nonfarm payrolls plunged by an astonishing 533,000 last month, the worst such tally in 34 years, with the unemployment rate climbing to 6.7 percent, the highest since October 1993.
Also -- a record 1.35 million homes were in foreclosure in the third quarter, driving the foreclosure rate up to 2.97 percent, the Mortgage Bankers Association said Friday. That's a 76 percent increase from a year ago, according to the group's National Delinquency Survey.
The Canadian dollar, meanwhile, was trading 0.33 cents higher at 78.75 cents US.
BAYSTREET
Five of the TSX sub-groups traded higher today -- tech stocks were up 4.98 percent and financial stocks gained 2.59 percent and consumer staples stocks were ahead 1.86 percent.
On the downside -- mining stocks fell 1.94 percent; energy issues shed 1.04 percent and telecom stocks dipped 1.03 percent.
COMEX gold for February delivery lost $13.30 to $752.20 US an ounce.
Meanwhile, the TSX Venture Exchange shed 13.55 points to 684.31 and the NASDAQ Canada was up 18.31 points at 397.24.
ON WALLSTREET
Stocks staged a big comeback Friday, erasing losses after a brutal November employment report, to end with gains across the board.
The Dow Jones Industrial Average, down some 257 points earlier in the day, finished up 259.18 points, or 3.1 percent, to 8635.42, and the S&P 500 gained 30.82 points, or 3.6 percent, to 876.04. The Nasdaq added 63.75 points, or 4.4 percent, to 1509.31.
Traders were also keeping a close eye on the automakers. CEOs from General Motors, Ford and Chrysler are again slated to appear before lawmakers in hopes of striking a bailout deal. Sticking points on the package have included the source of funding, concessions the automakers should make and how much money they should get.
The Wall Street Journal reported that Chrysler had retained Jones Day as counsel in preparation for a possible Chapter 11 bankruptcy filing.
In other company news, The Wall Street Journal said airplane manufacturer Boeing may face additional delays for its 787 jet.
Meanwhile, Merrill Lynch shareholders voted Friday to approve a merger with Bank of America.
Longer-dated U.S. Treasury securities were lower in price. The 10-year was losing 31/32 to yield 2.66 percent, and the 30-year was down 1-13/32, yielding 3.10 percent. The American dollar was strengthening against its major foreign competitors.
U.S. light crude oil for January delivery fell $2.86 to settle at $40.81 US a barrel on the New York Mercantile Exchange ending at a 4-year low.
