Canadian stocks enjoyed a good start Friday, tracking a rise in commodity prices, though an expected sharp drop in Research in Motion is expected to drag on Toronto's main stock index.
The Blackberry maker offered a dismal outlook on shipments around Christmas and delayed the overhaul of its smartphones. Shares of the Waterloo, Ontario-based company plummeted $1.84, or 11.7%, to $13.96 in the early going.
The S&P/TSX Composite Index picked up 94.23 points to kick off Friday’s trading at 11,598.65
The Canadian dollar eased 0.19 cents to 96.47 cents U.S.
Other stocks to watch Friday morning include Valeant Pharmaceuticals International Inc., which said its experimental antifungal drug met the main goals of two late-stage trials.
The beneficiary of recent customer support, TransCanada Corp. said on Thursday it not only wants to proceed with its stalled Canada-to-Texas Keystone XL oil pipeline but to undertake a $600-million expansion and extension.
Torex Gold Resources said it signed long-term lease agreements with land holders for construction and mining at its Morelos gold project in Mexico, paving the way for commercial production at the site.
Gaming software whiz Amaya Gaming Group is looking to buyout its peer CryptoLogic for $34.5 million in cash, to expand its customer base.
Maxim Power Corp. said one of its units signed a 10-year contract to ship coal through the Prince Rupert terminal in British Columbia.
On the economic slate, Statistics Canada reported this morning that foreigners did not dive into Canadian securities during October as they had done in months past. Figures showed non-residents adding $2.0 billion to their holdings, compared with an average acquisition of $9.2 billion over the previous three months. Canadian investors acquired $2.2 billion in foreign securities during the same month, slightly more than in September.
Elsewhere, fewer of us are on the pogey. The nation’s number crunchers told us that the number of people receiving regular Employment Insurance benefits declined by 5,400 or 1% in October, to 541,200.
ON BAYSTREET
The TSX Venture Exchange progressed 14.06 points to 1,418.99, while the Nasdaq Canada index was down 7.29 points to 354.89
All but one of the 14 Toronto subgroups gained ground in the first hour. Gold jumped 2.6%, materials 2.2%, and the metals and mining sector, 1.8%.
Information technology’s 1.2% slide made it the only naysayer.
ON WALLSTREET
In New York, stocks opened higher, but investors are bracing for a choppy Friday as they close out options and futures contracts that expire.
The Dow Jones Industrials gained 86.36 points to start the week’s final session at 11,955.20
The S&P 500 added 9.17 points, to 1,224.92, while the Nasdaq Composite prospered 39.03 points to 2,580.04
Investors showed little reaction to the government's latest data on inflation released early Friday.
Friday also brings "quadruple-witching," when four types of contracts expire -- those tied to market index futures, market index options, stock options and stock futures. Quadruple witching can often make for a volatile day for stock markets, as traders move to make last minute bets.
U.S. stocks closed higher Thursday on upbeat jobs and manufacturing reports, but investors said the market remains nervous about the European debt crisis.
U.S. bank stocks were mixed, following an overnight downgrade from Fitch. The banks included Bank of America, Morgan Stanley, and Goldman Sachs, as well as Europe's Barclays, Societe Generale, BNP Paribas, Deutsche Bank and Credit Suisse.
Zynga shares are expected to begin trading on the Nasdaq Friday, after pricing at $10 U.S. a share in the company's initial public offering late Thursday.
Research in Motion shares dropped sharply, a day after the BlackBerry maker offered a disappointing outlook for the current quarter and next year, when it released its earnings results.
On the economic front, consumer prices rose at a 3.4% annual rate in November, virtually unchanged from the prior month, the government said.
Elsewhere, New York Fed President William Dudley said he doesn't anticipate the Federal Reserve will step in with further efforts to address the potential spillover effects of Europe on the United States.
Dudley is scheduled to appear before a House committee to discuss what the euro crisis means for taxpayers and the U.S. economy.
At separate events, Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher are also scheduled to give speeches later Friday.
The price on the benchmark 10-year U.S. Treasury gained strength, pushing the yield down to 1.89% from 1.91% Thursday. Treasury prices and yields move in opposite directions.
Oil for January delivery gained back 36 cents to $93.92 U.S. a barrel.
Gold futures for February delivery rose $9.70 to $1,586.90 U.S. an ounce.
