North American stock markets were higher Friday as a strong U.S. retail sales report raised hopes that a market bottom is near after three weeks of selloffs.
The S&P/TSX composite index gained 18.89 points to 12,558.69, weighed down by gold stocks as bullion prices stepped back. The TSX Venture Exchange was up 15.36 points to 1,809.17.
New York’s Dow Jones industrial average was up 75.38 points to 11,218.69. The Nasdaq composite index gained 2.29 points to 2,494.97 and the S&P 500 index was ahead 4.92 points to 1,177.56.
The Canadian dollar lost early lift, moving down 0.13 of a cent to 101.05 cents US.
Traders were pleased with data showing that U.S. retail sales rose 0.5 per cent last month, the best showing since a 0.8 per cent advance in March. And the government revised sales higher in the previous two months. That suggests the economy was not as weak as previously believed.
However, buying stocks moved off early highs following data showing the consumer sentiment index from the University of Michigan and Thompson Reuters tumbled to 54.9 during August, much lower than the 63.2 reading that had been expected.
But investors felt more positive about the financial sector after a short-selling ban on financial shares in four eurozone countries helped stabilize French banks.
Regulators in France, Italy, Spain and Belgium imposed temporary bans on short-selling of financial shares late Thursday, following sharp selloffs and temporary gains in French bank shares in particular that were blamed on false rumours.
The stocks of French banks have been hammered because of concerns they will be hit with massive losses from European sovereign debt they hold. One European nation after another has struggled with debt, with Spain and Italy the latest.
Stability in the French banking sector helped push the TSX financial sector up 0.6 per cent with Scotiabank (TSX: BNS) ahead 37 cents to C$54.14 while CIBC (TSX: CM) climbed 46 cents to $72.96.
Worries spread to France this past week, with the government trying to assure financial markets that it will not be downgraded from AAA. Standard & Poor’s rating agency stripped the United States of its top-notch AAA credit rating last Friday.
Eurozone debt worries, and what is perceived as a growing likelihood the U.S. will slip back into recession, have hammered markets since July 22.
Investors, looking for bargains amidst the carnage of three weeks of tumbles pushed the TSX up 341 points Thursday while the Dow industrials jumped 424 points.
The TSX has run up about 865 points over the last three sessions. But the main index is still down more than seven per cent just since July 22 and down almost 13 per cent from the highs of early March.
Oil prices added to Thursday’s gain of almost US$3, with the September contract on the New York Mercantile Exchange up 67 cents to US$86.39. The energy sector gained 0.4 per cent as Imperial Oil (TSX: IMO) rose 31 cents to $41.50 and Cenovus Energy (TSX: CVE) fell 73 cents to C$34.78.
The base metals sector was up 0.55 per cent with copper prices ahead two cents to US$4.03 a pound following a 12-cent runup on Thursday. First Quantum Minerals (TSX: FM) gained 47 cents to C$23.27 while Quadra FNX Mining (TSX: QUX) lost 33 cents to $13.04.
Taseko Mines Ltd. (TSX: TKO) shares fell 15 cents to $3.44 as the miner lost $1.1 million or a penny per share for the quarter ended June 30 compared with a profit of $44.8 million or 24 cents per share a year ago. Revenue totalled $48.3 million, down from $56.5 million.
The gold sector was the weakest group, down 1.37 per cent as the December bullion contract on the Nymex fell $13 to US$1,738.50. Barrick Gold (TSX: ABX) faded 65 cents to C$49.09.
European markets were up sharply following the announcement of the short selling ban, with Londons’ FTSE 100 index up 1.81 per cent, Frankfurt’s DAX rose 2.55 per cent and the Paris CAC 40 gained 2.15 per cent.
Asian markets benefited from the strong showing on North American markets as Hong Kong’s Hang Seng added 0.1 per cent, Australia’s S&P/ASX 200 gained 0.8 per cent, while benchmarks in New Zealand and Singapore also rose.
But Japan’s Nikkei 225 stock average was lower, closing down 0.2 per cent.
Mainland Chinese shares, however, traded higher for a fourth day, as the Shanghai Composite Index gained 0.5 per cent while the Shenzhen Composite Index gained one per cent.
In other earnings news, Wenzel Downhole Tools Ltd. (TSX: WZL), an energy drilling equipment and services company, reports its net profits rose sharply to $2.1 million from $1.2 million a year ago. Revenues increased 40 per cent to $18.3 million and its shares jumped 20 cents to $2.20.
Packaged ice maker Arctic Glacier Income Fund (TSX: AG.UN) says it lost $16.1 million, or 41 cents per share in the second quarter, compared to a profit of $1.1 million, or three cents per share in the same period of 2010. Sales were $67.4 million versus $71.5 million and its units fell 2.5 cents to 13 cents.
Finning International Inc. (TSX: FTT) reported that second-quarter net income rose 129 per cent to $82 million from $36 million a year ago. Revenue increased to $1.49 billion from $1.07 billion on “exceptionally strong new equipment sales.” Shares in the company were up 54 cents to $25.94.
The S&P/TSX composite index gained 18.89 points to 12,558.69, weighed down by gold stocks as bullion prices stepped back. The TSX Venture Exchange was up 15.36 points to 1,809.17.
New York’s Dow Jones industrial average was up 75.38 points to 11,218.69. The Nasdaq composite index gained 2.29 points to 2,494.97 and the S&P 500 index was ahead 4.92 points to 1,177.56.
The Canadian dollar lost early lift, moving down 0.13 of a cent to 101.05 cents US.
Traders were pleased with data showing that U.S. retail sales rose 0.5 per cent last month, the best showing since a 0.8 per cent advance in March. And the government revised sales higher in the previous two months. That suggests the economy was not as weak as previously believed.
However, buying stocks moved off early highs following data showing the consumer sentiment index from the University of Michigan and Thompson Reuters tumbled to 54.9 during August, much lower than the 63.2 reading that had been expected.
But investors felt more positive about the financial sector after a short-selling ban on financial shares in four eurozone countries helped stabilize French banks.
Regulators in France, Italy, Spain and Belgium imposed temporary bans on short-selling of financial shares late Thursday, following sharp selloffs and temporary gains in French bank shares in particular that were blamed on false rumours.
The stocks of French banks have been hammered because of concerns they will be hit with massive losses from European sovereign debt they hold. One European nation after another has struggled with debt, with Spain and Italy the latest.
Stability in the French banking sector helped push the TSX financial sector up 0.6 per cent with Scotiabank (TSX: BNS) ahead 37 cents to C$54.14 while CIBC (TSX: CM) climbed 46 cents to $72.96.
Worries spread to France this past week, with the government trying to assure financial markets that it will not be downgraded from AAA. Standard & Poor’s rating agency stripped the United States of its top-notch AAA credit rating last Friday.
Eurozone debt worries, and what is perceived as a growing likelihood the U.S. will slip back into recession, have hammered markets since July 22.
Investors, looking for bargains amidst the carnage of three weeks of tumbles pushed the TSX up 341 points Thursday while the Dow industrials jumped 424 points.
The TSX has run up about 865 points over the last three sessions. But the main index is still down more than seven per cent just since July 22 and down almost 13 per cent from the highs of early March.
Oil prices added to Thursday’s gain of almost US$3, with the September contract on the New York Mercantile Exchange up 67 cents to US$86.39. The energy sector gained 0.4 per cent as Imperial Oil (TSX: IMO) rose 31 cents to $41.50 and Cenovus Energy (TSX: CVE) fell 73 cents to C$34.78.
The base metals sector was up 0.55 per cent with copper prices ahead two cents to US$4.03 a pound following a 12-cent runup on Thursday. First Quantum Minerals (TSX: FM) gained 47 cents to C$23.27 while Quadra FNX Mining (TSX: QUX) lost 33 cents to $13.04.
The gold sector was the weakest group, down 1.37 per cent as the December bullion contract on the Nymex fell $13 to US$1,738.50. Barrick Gold (TSX: ABX) faded 65 cents to C$49.09.
European markets were up sharply following the announcement of the short selling ban, with Londons’ FTSE 100 index up 1.81 per cent, Frankfurt’s DAX rose 2.55 per cent and the Paris CAC 40 gained 2.15 per cent.
Asian markets benefited from the strong showing on North American markets as Hong Kong’s Hang Seng added 0.1 per cent, Australia’s S&P/ASX 200 gained 0.8 per cent, while benchmarks in New Zealand and Singapore also rose.
But Japan’s Nikkei 225 stock average was lower, closing down 0.2 per cent.
Mainland Chinese shares, however, traded higher for a fourth day, as the Shanghai Composite Index gained 0.5 per cent while the Shenzhen Composite Index gained one per cent.
In other earnings news, Wenzel Downhole Tools Ltd. (TSX: WZL), an energy drilling equipment and services company, reports its net profits rose sharply to $2.1 million from $1.2 million a year ago. Revenues increased 40 per cent to $18.3 million and its shares jumped 20 cents to $2.20.
Packaged ice maker Arctic Glacier Income Fund (TSX: AG.UN) says it lost $16.1 million, or 41 cents per share in the second quarter, compared to a profit of $1.1 million, or three cents per share in the same period of 2010. Sales were $67.4 million versus $71.5 million and its units fell 2.5 cents to 13 cents.
Finning International Inc. (TSX: FTT) reported that second-quarter net income rose 129 per cent to $82 million from $36 million a year ago. Revenue increased to $1.49 billion from $1.07 billion on “exceptionally strong new equipment sales.” Shares in the company were up 54 cents to $25.94.
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