TORONTO – The Toronto stock market registered gains for a third session Friday morning as resource stocks led a widespread advance despite U.S. data showing weaker than expected growth at the end of last year.
The S&P/TSX composite index up 62.23 points to 15,303.39. The Canadian dollar gained 0.25 of a U.S. cent to 80.08 cents.
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U.S. indexes declined as U.S. gross domestic product grew at an annual rate of 2.2 per cent in the October-December quarter, weaker than the 2.6 per cent first estimated last month in a reflection of weaker business stockpiling and a bigger trade deficit.
However, economists weren’t worried by the lower reading on expectations for a positive 2015.
“Average annual growth of 2.9 per cent in the past six quarters still denotes a meaningful upward shift from 2.1 per cent in the first four years of the recovery,” observed BMO Capital Markets senior economist Sal Guatieri.
“We look for 2.3 per cent growth in Q1 and near three per cent growth for the rest of the year, powered by more financially-fit consumers, but also supported by solid growth in business spending (outside the oil patch).”
The Dow Jones industrials gave back 25.98 points to 18,188.44, the Nasdaq was 5.59 points lower to 4,982.3 and the S&P 500 index slipped 1.28 points to 2,109.46.
The TSX base metals sector led advancers, up one per cent while May copper was down two cents to US$2.68 a pound.
April gold up $5.20 to US$1,215.30 an ounce and the gold sector rose 0.7 per cent.
The energy sector climbed 0.6 per cent. Oil prices advanced after plunging almost $3 a barrel on Thursday to the lowest level in a month as data continues to show large buildups of crude inventories in the United States. On Friday, the April crude contract in New York was up $1.10 to US$49.27 a barrel.
Crude prices have moved lower this week as inventories remain at their highest levels in 80 years. Also depressing oil and other commodity prices lately is a steadily strengthening U.S. currency.
The TSX could be in for a modest gain this week amid a run of generally well-received earnings reports from most of the big Canadian banks. Energy stocks were shaping up to be the major decliner this week.
However, the Toronto market has enjoyed a positive month, led by gains in base metal miners, tech companies and consumer discretionary stocks.
In corporate news, Aimia Inc., (TSX:AIM) the company that operates customer loyalty programs for Air Canada (TSX:AC), TD Bank (TSX:TD) and CIBC (TSX:CM) credit cards, and other business partners. The company posted adjusted earnings of $60 million or 20 cents a share, four cents short of forecasts. Its stock dropped $1.19 or 8.3 per cent to $13.15 as revenue of $761.1 million beat estimates.
And it’s a big day for transportation giant Bombardier Inc. (TSX:BBD.B). Its new larger CSeries jetliner was to make its maiden flight Friday morning with takeoff scheduled for 10 a.m. Eastern time at Mirabel airport outside Montreal. Bombardier announced before the flight that a previously announced equity financing to help pay for sharply rising costs of the CSeries program will reap about $1.1 billion. Bombardier shares lost six cents to $2.55.
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