The Toronto stock market reacquired some lost strength Friday, even as a double-digit drop in shares of market heavyweight Research in Motion weighed on the main index after it announced a gloomy outlook.
After spending much of the day in negative territory, the S&P/TSX Composite Index ended the day up 50.39 points to conclude the week and month at 13,944.79
The Canadian dollar recovered 0.54 cents to 105.73 cents U.S.
The way the TSX is closing the week -- fluctuating between positive and negative territory -- is appropriate given that the market has struggled to find direction for the past few days, according to some experts.
Investors have been digesting a slew of largely positive earnings as well as some disappointing economic data from both sides of the border. In addition, Friday marks the last trading day of the month, contributing to a pickup in resource stocks, which had been trading lower for most of the week.
Shares in BlackBerry-maker Research in Motion were down more than 13% in morning trading as investors responded to the company reducing its financial guidance.
On the day, RIM’s stock pulled back 14.7% or $7.91 to $45.92 on the Toronto stock market.
On Thursday, after stock markets closed, the company cut its guidance based on lower than expected shipments of BlackBerry smartphones and reduced average selling prices for the devices.
The financial sector was also in the red, though shares in Toronto-Dominion Bank eked ahead two cents to $81.61.
In Canadian corporate earnings, pipeline company TransCanada Corp.’s first-quarter net income rose 39% to $465 million from year-ago $334 million. Shares gained 17 cents to $40.52.
Lundin Mining Corp shares were up 11.2% or 93 cents to $9.27 after trading resumed Friday morning after being halted at market open in response to a report that it is considering a takeover offer from a Chinese consortium. However, it said only that it was continuing a previously announced process to explore its strategic options.
On the economic front, Statistics Canada said February real gross domestic product slumped 0.2%, following a 0.5% jump in January.
ON BAYSTREET
The TSX Venture Exchange gained 5.92 points to 2,252.14 while the Nasdaq Canada index dumped 55.51 points to 716.75
In Toronto, eight of the 14 subgroups were higher. Metals and mining stocks vaulted 1.1% higher, while gold gained 0.8% and energy issues were 0.6% more energetic.
Information technology weighed most heavily on the laggards, sinking 3.1%, while real-estate dropped 0.4%, and financials stumbled 0.2%
ON WALLSTREET
In New York, stocks were modestly higher on Friday, as strong earnings from Caterpillar lifted the blue chips but tech shares remained under pressure following a lowered outlook from BlackBerry maker Research in Motion.
The Dow Jones industrial average gained 47.23 points to end the day at 12,810.50
The S&P 500 moved ahead 3.13 points to 1,363.61. The Nasdaq Composite Index stepped up 1.01 points to 2,873.05.
The Dow was led higher by shares of Caterpillar, whose bottom line got a boost from strong demand for bulldozers and other heavy machinery. Shares were up 2.5%.
The tech-heavy Nasdaq was weighed down by shares of Research in Motion, which plummeted 14% after the BlackBerry maker warned of weaker sales.
Investors remain nervous about the economy and inflation. The Fed has been pretty clear that interest rates aren't likely to budge this year. Meanwhile, gold and silver continue to hit new highs as the U.S. dollar keeps sliding, falling to a three-year low against the euro.
On Thursday, U.S. stocks rose to multi-year highs, as investors looked beyond a series of mixed earnings reports and disappointing GDP and jobless claims reports.
Dow components Chevron and Merck reported better-than-expected earnings before the opening bell.
Merck's quarterly profit tripled on strong drug sales, while Chevron reported a 26% jump in quarterly net income, driven by higher energy prices. Shares of both companies were up 0.6%
Late Thursday, Microsoft reported a 31% surge in quarterly profit, on strong Office and Kinect sales. But not all the news was good, as netbook sales fell 40%. Microsoft's stock slipped 4%.
Economically speaking, the U.S. Commerce Department said Friday that personal spending rose 0.6% in March, slightly better than the 0.5% expected by economists. Personal incomes rose 0.5% compared with economists' forecast of a rise of 0.4%.
The price on the benchmark 10-year U.S. Treasury ended the static, with yields remaining at Thursday’s 3.31%.
Oil for June delivery was up 51 cents to $113.37 U.S. a barrel.
Gold futures for June delivery hit an intraday high of $1,552.70 U.S. per ounce early Friday.
