RISING GOLD PRICE CHARMS TORONTO
TORONTO • Rising gold stocks helped push the Toronto stock market higher Friday on top of three straight days of advances that have left the TSX at its highest level since April 2011.
The S&P/TSX composite index was ahead 56.63 points to 13,888.21. The Canadian dollar slid US0.42¢ to US91.11¢.
U.S. indexes were mixed amid U.S. earnings reports from a variety of sectors and economic data showing rising industrial production and declining housing starts.
The Dow Jones industrial average rose 41.55 points to 16,458.56, Nasdaq fell 21.11 points to 4,197.58 and the S&P 500 index was off 7.19 points at 1,838.70.
General Electric Co.’s net income rose 5% to US$4.2-billion in the fourth quarter on rising profit from the sale of aircraft engines, oil and gas drilling equipment, and appliances. Ex-items, GE met analyst expectations of US53¢ a share but its stock fell US62¢ to US$26.58.
Analysts note that the start to the fourth-quarter earnings season this past week has been positive but with the Dow and S&P 500 trading at all-time highs, there are fairly high expectations.
“Companies are more or less getting to expectations but they’re not beating, we’re not getting the upside surprises that can ignite the next round of gains,” said Colin Cieszynski, Canadian markets specialist at CMC Markets Canada.
Elsewhere, Dollarama Inc. said bad weather had a severe impact on December sales but that they have been trending back to normal levels. The Montreal-based retailer says comparable-store sales in the normally busy month were down 7.5%. Dollarama edged 34¢ lower to $82.74.
Royal Bank of Canada also downgraded Bombardier Inc. to sector perform from outperform after the transport giant said that its flagship new CSeries airliner will be going into service later than expected. Its stock fell 7.7% Thursday on the news and lost 6¢ to $4.11 Friday.
The TSX gold sector, the worst performing component on the Toronto market last year, ran up almost 4%.
The sector fell almost 50% last year and “a lot of people dumped it at the end of last year to get it off the books and now you’re seeing the relief rally,” said Mr. Cieszynski.
February bullion rose US$11.70 to US$1,251.90 an ounce. Barrick Gold Corp. advanced 69¢ to $20.61 while Goldcorp Inc. gained $1.05 to $25.43.
The tech sector climbed 1.37% as BlackBerry Ltd. rose 61¢ to $9.98. Financials were also positive, up 0.3% with Royal Bank ahead 50¢ to $71.86.
The energy component was up 0.13% as the February crude contract on the New York Mercantile Exchange rose US41¢ to US$94.37 a barrel.
On the economic front, the U.S. Commerce Department said Friday that builders broke ground last month at a seasonally annual rate of 999,000 homes. That’s 9.8% lower than November’s pace of 1.12 million, which was the most in five years.
The TSX ran ahead 141 points, or 1%, this past week, with advances paced by the precious and base metal mining sectors. But the Dow industrial average ended the week flat amid the mixed earnings news, up just 22 points or 0.13%.