TSX rebounds on financials, oil
Financial and energy stocks headed higher Friday helping the main index of the Toronto Stock Exchange to close just higher after losses in the previous session. Valeant Pharmaceutical also rebounded following a drop Thursday when it announced its subpoena to a US drug pricing inquiry.
Oil prices headed higher as the US rig count figures were lower for a 7th
Global stocks were in positive territory beginning with Asian markets which gained on expectation that China may announce additional stimulus, especially if Monday’s GDP data is weak.
In Europe earnings together with the positive wave from Asia meant a strong finish to the session.
Wall Street managed slim gains amid mixed data; particularly in focus was industrial production slipping slightly.
The S&P/TSX Composite Index closed up 9.13 (0.07 per cent)
The Dow Jones closed up 74.22 (0.43 per cent)
Oil is trending higher (Brent $50.44, WTI $47.22 at 4.05pm)
Gold is trending lower (1177.50 at 4.05pm)
The loonie is valued at U$0.7744
Manufacturing sector down in August
The latest data from Statistics Canada on the manufacturing sector shows that sales edged down 0.2 per cent to $52.1 billion in August, following three consecutive monthly advances. The largest declines were recorded in the petroleum and coal product, motor vehicle parts, and aerospace product and parts industries. These were largely offset by gains in the motor vehicle assembly and wood product industries. Sales were down in 8 of 21 main industries, representing approximately half of the sector.
Constant dollar sales decreased 0.1 per cent, indicating that the volume of goods produced by Canadian manufacturers edged down.
Oil firms downgraded by Standard & Poor’s
Rating agency Standard & Poor’s has downgraded six major Canadian oilsands companies. Cenovus is down to BBB with a stable outlook; Husky is still BBB+ but its outlook is now negative; Harvest Operations is down to CCC+ with negative outlook; Jupiter Resources is down to B with outlook negative; Bellatrix Exploration is down to B but still with a stable outlook; and Lightstream Resources stays at B- but its outlook is now negative.
Caterpillar to close Ontario loco office
The London, Ontario office of Caterpillar’s locomotive division is closing with the loss of about 50 people. The factory nearby closed three years ago but the office was retained. It will now close on Dec. 31.