Daily Wrap-up: TSX gains despite disappointing manufacturing data

TSX gains despite disappointing manufacturing data... Fresh low for manufacturers... Valeant rebounds but research firm calls stock “toxic”... Good news, bad news for Canadian banks...

Steve Randall
TSX gains despite disappointing manufacturing data
Investors shrugged off some of the weak data Monday to give a narrowly positive start to the fourth quarter on the Toronto Stock Exchange.

The main index advanced despite data showing weakness in Canada’s manufacturing sector, more weak Chinese data and declining oil prices. The resources sector managed to see some gains along with Valeant which rebounded after dropping last week.

Wall Street also gained with the Nasdaq closing almost 1.5 per cent higher; Europe also ended the session higher while Asian markets largely lower following weak Chinese PMI figures.
The S&P/TSX Composite Index closed up 93.84 (0.69 per cent)
The Dow Jones closed up 165.0 (0.93 per cent)
Oil is trending lower (Brent $48.74, WTI $46.08 at 4.10pm)
Gold is trending lower (1134.0 at 4.10pm)
The loonie is valued at U$0.7634
Fresh low for manufacturers
The manufacturing sector contracted again in October and by more than it did a month earlier. The RBC PMI dropped to a seasonally-adjusted figure of 48.0 from 48.6 in September; below 50 is contraction. Alberta and BC have been hit hardest, due to cuts in spending by the energy sector while Ontario did better.
Valeant rebounds but research firm calls stock “toxic”
Short-seller Citron Research believes that Valeant Pharmaceutical’s outlook is weak and that the Quebec firm will struggle to pay debts. CBC News reports that it has called the firm’s stock “toxic”. Investors seemed unconvinced by the outlook, buying Valeant stock which gained around 9 per cent.  
Good news, bad news for Canadian banks
Canada’s banks had mixed fortunes Monday. RBC completed a U$5 billion acquisition of US bank City National Corp. part of its international growth plan. Meanwhile CIBC was defending itself in a statement against a lawsuit filed Friday by New York based private equity firm Cerberus Capital Management alleging defaulted payments and millions of dollars of debt. The Globe and Mail reports that CIBC says it has satisfied its 84 payments totalling U$1.2 billion.