Jan. 22, 2010 (Baystreet.ca) --
The stock picture brightened considerably in Toronto, after a horrible Thursday which saw the main index topple more than 200 points, and a Friday morning which found traders floundering.
By noon, the S&P/TSX Composite Index had assumed a more positive pose and gained 5.51 points, to 11,474.61.
The TSX financial sector was down on top of a 2% drop Thursday after U.S. President Barack Obama unveiled plans for limits on how large big banks can be. He also aims to end some of the risky trading large financial companies have used in recent quarters to boost profits.
Royal Bank gave back $1.19 to $53.51 and National Bank fell 87 cents to $56.54.
The base metals component shed most of the early losses as copper prices moved ahead six cents at $3.29 U.S. a pound. But Teck Resources was still down 82 cents to $38.92.
Energy stocks were weak as Imperial Oil shed 56 cents to $39.14.
The gold sector was strongest, as Barrick Gold Corp. gained $1 to $39.31.
Enbridge Inc. said Thursday that its Alberta Clipper crude oil pipeline from Alberta to Wisconsin is set to come into service on April 1, months ahead of schedule. Its shares fell $1.05 to $46.57.
Moly Mines Ltd. shares rose two cents to 96 cents as it said that Sichuan Hanlong Group has received approval from a regulatory wing of People's Republic of China for $200-million U.S. controlling interest investment in company.
The Canadian dollar skidded 0.30 cents to 94.76 cents U.S.
ON BAYSTREET
All but three of 14 TSX subgroups were higher. Gold led the upward charge, gaining 2.3%, followed by materials, up 1.3% and metals and mining, ahead 1.2%.
The three laggards were utilities and financials, down 0.6% each, while telecoms were 0.4% each.
The TSX Venture Exchange was still off 7.74 points to 1,551.17, while the Nasdaq Canada index staggered 0.02 points to 702.19.
ON WALLSTREET
In New York, the stock selloff accelerated Friday, with investors dumping shares for a third straight session, as upbeat corporate news failed to assuage worries about the Obama administration's bank plan.
The Dow Jones Industrials was 30.53 points in the red at 10,359.35. The S&P 500 was off 3.89 points to 1.112.59, and the Nasdaq swooned 14.14 points to 2,251.56.
Wall Street saw its worst day in months on Thursday, with all three major gauges ending in negative territory for the year. It was the second big down day in a row, with the major gauges losing the 3% that had been gained in January.
The selling continued Friday, with investors continuing to react to the White House's plan to increase regulation of the nation's biggest financial firms.
Selling began Wednesday on reports that China has asked banks to slow the pace of lending this year in an attempt to get ahead of inflation.
In the wake of the credit crisis, the government is looking to limit the ability of commercial banks to make high-risk trades and stop them from owning or investing in hedge funds.
If such a policy is enacted, it would separate commercial and investment banks in a throwback to a Depression-era law that has been out of use for a decade.
Large banks such as JPMorgan Chase, Goldman Sachs and Bank of America would feel the brunt of the impact. All three slipped Friday.
General Electric reported weaker revenue and earnings versus a year ago that nonetheless beat analysts' estimates. GE also reported higher sales and profit versus the previous quarter, with the exception of its struggling NBC Universal unit.
Looking forward, GE said it sees solid growth next year. Shares rose 2.8%.
Fellow Dow component McDonald's reported higher quarterly sales and earnings that topped estimates, with strength in international markets offsetting any weakness in its U.S. business.
Shares rose 1%.
After the close Thursday, American Express reported higher earnings that beat forecasts on flat revenue that also beat estimates. Nonetheless, shares of the financial services firm lost 5% in Friday trading.
Also after the close Thursday, Google reported a big jump in revenue that topped estimates thanks to a rebound in the advertising market. However, shares lost 3% Friday morning.
Treasury prices were unchanged, keeping the yield on the 10-year note at Thursday's 3.61%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped $1.17 to $74.91 U.S.
Gold prices fell five dollars to $1,098 U.S.
