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Mar. 5, 2010 (Baystreet.ca) --
The Toronto stock market was ahead more than 100 points mid-afternoon Friday as U.S. job losses last month came in less than expected.
The S&P/TSX composite index continued its pursuit of the psychologically-important 12,000 mark, finishing the day ahead 150.17 points, or 1.3%, to 11,975.14, a rise of nearly 3% on the week.
The Toronto market was set for a solid gain for the first week of March trading as strong earnings reports from TD Bank and Bank of Montreal boosted the financial sector. Commodity stocks have also buoyed the TSX this past week and prices for oil and metals were higher on Friday. TD stocks progressed $1.29 to $71, while BMO shares gained 32 cents to $59.64.
The base metals sector proved mighty, as May copper added four cents to $3.42 U.S. a pound. Teck Resources gained $1.37 to $41.84, FNX Mining was up 86 cents to $15.15 while Labrador Iron Mines Holdings shed 18 cents to $6.11.
Among energy issues, Canadian Natural Resources climbed $2.52 to $74.48 while EnCana Corp. was up 48 cents to $35.29.
There was also buying activity in the oilpatch as Daylight Resources Trust said it is buying West Energy Ltd. for $570 million in cash and shares, including debt, as the junior oil trust seeks to expand its holdings in the Pembina oil region of central Alberta. Daylight units fell 18 cents to $10.74 while West Energy shares shot up 77 cents, or more than 18%, to $5.02.
In the gold sector, Goldcorp Inc. gained 87 cents to $41.53 and Barrick Gold Corp. was 61 cents higher to $41.55.
Railroad stocks helped pull the industrials sector higher. Canadian National Railways advanced $1.23 to $57.92 while Canadian Pacific Railway climbed $1.44 to $56.61.
Financials also contributed to the strong showing on the TSX as Scotiabank which reports earnings results Tuesday, gained 73 cents to $49.85.
In corporate news, coffee chain Tim Hortons is preparing to serve up a new U.S. restaurant format as part of its expansion plans over the next three years. It made the announcement as the company also said it is aiming for same-store sales growth of 3-5% in Canada and 2-4% in the United States. Tim Hortons shares gained 81 cents to $32.73.
Shares in engineering firm SNC-Lavalin Inc. jumped $2.20 to $52.35 after the Montreal-based firm said it is hiking dividends by 13% to 17 cents a share.
The announcement came as the company reported fourth-quarter profit of $98.7 million or 65 cents per share, up from a profit of $61.3 million or 49 cents per share in the year-earlier quarter.
Yesterday, in its budget statement, the Canadian government said it forecasts a $49.2-billion deficit in 2010-11, up from the $45.3 billion predicted earlier and noted that it would be in surplus by 2015-16.
The Canadian dollar jumped 0.11 cents to 97.05 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups went up Friday, led by a 3.7% gain by the metals and mining group, a 3.3% jump by global base metals, and 2% by the industrial sector.
Only a 0.3% decline by information technology prevented unanimity.
The TSX Venture Exchange prospered 16.09 points to 1,557.93, while the Nasdaq Canada index gained 1.01 points to 757.62.
ON WALLSTREET
In New York, equities rallied Friday, ending an upbeat weak on a high note, after a government report showed employers cut fewer positions last month than had been expected, in the latest sign that the pace of job cuts is slowing.
The Dow Jones industrial average rocketed 122.06 points, or 1.2%, to close at 10,566.20, a jump of 2.3% on the week. The S&P 500 index leaped 15.73 points to 1,138.70, and the Nasdaq composite improved 34.04 points to 2,326.35.
Stocks opened higher and built on those gains through the session, with a variety of stocks participating. On the Dow, 25 of 30 components rose, led by Chevron, Exxon Mobil, JPMorgan Chase, American Express, Boeing, Caterpillar and 3M.
Wall Street is on tap to post gains for the week, with all three major gauges set to close higher for the third of the last four weeks.
Stocks fell last week as a slew of worse-than-expected economic reports exacerbated worries that the market was too optimistic about the pace of an economic recovery.
But this week, some of those worries were soothed following a number of in-line or better-than-expected reports on manufacturing, inflation and the labour market.
Apple shares gained 4% after the company said it would release its much-anticipated iPad tablet computer April 3.
Broadband services firm RCN has agreed to be taken private by ABRY Partners, in a deal worth $536 million U.S. in cash plus the assumption of debt. Shares of RCN rallied 23% in unusually active Nasdaq trading.
Biotech InterMune rallied 58% in unusually active Nasdaq trading on bets that pirfenidone, the company's treatment for lung scarring, could get Food and Drug Administration (FDA) approval.
An FDA panel gave the drug a mixed review, saying there wasn't enough substantial evidence of the effectiveness of the drug to approve it. However, some investors were expecting an even more negative review and shares surged.
Economically speaking, the Labor Department announced that the economy lost 36,000 jobs in February and the unemployment rate was unchanged at 9.7%.
A consensus of economists surveyed by Briefing.com had expected the report to show the economy lost 63,000 jobs last month and for the unemployment rate to tick higher to 9.8%.
On Thursday, the House amended a $15-billion U.S. Senate bill before passing it, once again delaying efforts to pass legislation to spur job creation. The amendments mean the Senate must again approve the bill if President Obama is to sign it into law. The Senate won't take up the legislation again until next week.
Treasury prices dipped sharply, raising the yield on the 10-year note to 3.68% from Thursday's 3.60%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained $1.50 to $81.71 U.S.
Gold prices gained four dollars to $1,138 U.S.