Markets Vault on Inflation News

Indexes to Break 3-Wk. Skid

Canada's main stock index rose on Friday after data showed annual inflation rate dipped as price pressures from gas and air travel eased.

Equities in Canada`s largest market rose by noon on Friday, driven by an expectation of another interest hike by the Bank of Canada to subdue inflation.

The S&P/TSX Composite Index rocketed 150.87 points, or 1%, higher to greet noon at 15,555

The Canadian dollar scaled back 0.2 cents to 76.26 cents U.S.

The main index was on track to end the week higher after three consecutive weeks of declines.

Top percentage gainers on the TSX were shares of Badger Daylighting, which jumped $1.15, or 4.4%, to $27.41, followed by shares of Detour Gold, which rose 44 cents, or 4.1%, to $11.24.

Lucara Diamond fell four cents, or 1.9%, the most on the TSX, to $2.11, followed by shares of Rogers Communications, down 58 cents to $66.91

On the economic calendar, Statistics Canada’s Consumer Price Index (CPI) rose 2.2% year over year in September, following a 2.8% increase in August.

On a seasonally adjusted monthly basis, the CPI was down 0.1% in September, after rising 0.1% in August.

Elsewhere, retail sales declined 0.1% to $50.8 billion in August, following a 0.2% increase in July. Sales were down in seven of 11 sub-sectors in August, representing 52% of retail trade.

ON BAYSTREET

The TSX Venture Exchange let go of 2.41 points to 688.05

All 12 subgroups were in the green, led by health-care, jumping 1.6%, industrials, more solid by 1.4%, and consumer staples, up 1.2%.

ON WALLSTREET

Stocks rose on Friday amid solid corporate earnings as Wall Street tried to rebound from steep losses in the previous session.

The Dow Jones Industrials hiked 114.62 points to 25,494.07, led by sharp gains in Procter & Gamble.

The S&P 500 regained 13.84 points to 2,782.62, as the consumer staples and technology sectors outperformed.

The NASDAQ recovered 33.81 points to 7,518.95

P&G posted better-than-expected earnings, sending the stock up 6.7%. The company said it got a boost from strong beauty-product sales. Honeywell and Schlumberger also reported better-than-forecast profits.

American Express, PayPal and Skechers all posted on Thursday earnings that topped analyst expectations. Amex shares rose 3.5%, while PayPal climbed 9.3% and Skechers grew 13.6%.

The corporate earnings season is off to a strong start. With more than 15% of S&P 500 companies having reported, 83% have topped analyst expectations

Overnight, China said its economy grew by 6.5% in the third quarter, missing expectations. Chinese equities surged, however, as officials took steps to support the market, and that was helping sentiment in the U.S.

Despite Friday's gains, however, stocks remain down sharply for the month. The Dow and S&P 500 have fallen more than 4% each in October, while the NASDAQ is down nearly 7%.

Prices for the benchmark for the 10-year U.S. Treasury lost ground, raising yields to 3.19% from Thursday’s 3.17%. Treasury prices and yields move in opposite directions.

Oil prices gained 69 cents at $69.34 U.S. a barrel.

Gold prices recovered 40 cents an ounce to $1,230.50