TORONTO - The Toronto stock market was sharply higher Friday amid a stronger than expected showing for third-quarter economic growth in Canada, while indications pointed to a successful start to the U.S. holiday shopping season.
The S&P/TSX composite index was up 110.81 points to 13,481.64 with most sectors on positive ground.
The Canadian dollar was little changed despite higher commodity prices and a report from Statistics Canada that gross domestic product grew at an annualized rate of 2.7 per cent during the third quarter. That was better than the 2.5 per cent pace that economists had expected.
GDP growth in September was ahead 0.3 per cent from the previous month versus the 0.2 per cent rise that had been expected.
At the same time, the agency revised second quarter growth to 1.6 per cent from 1.7 per cent.
The loonie rose 0.06 of a cent to 94.52 cents US.
U.S. indexes were higher as New York markets operated on a shortened post-Thanksgiving session, which ends at 1 p.m. ET. The Canadian markets will close at the usual time of 4 p.m. ET.
The Dow Jones industrials rose 53.55 points to 16,152.88, the Nasdaq ran ahead 20.31 points to 4,065.06, and the S&P 500 index was 5.4 points higher to 1,812.63.
Black Friday has been traditionally the start to the busy shopping season, sandwiched between U.S. Thanksgiving and Christmas. It was named Black Friday because that was when retailers began to move out of the red and into the black — becoming profitable.
In the past few years, however, U.S. retailers have pushed opening times into Thanksgiving night and Canadian retailers have begun to promote Black Friday sales.
"Everybody likes a good deal, right?", said John Tsagarelis, portfolio manager at Manulife Asset Management, adding that retailers are operating at a disadvantage this year.
"This Christmas, just because of where U.S. Thanksgiving falls at the end of the month, there are six less days during the Christmas shopping season. So a lot of retailers are expecting sales that, even with the six less days, are flat, but that I suspect is optimistic."
Sales' figures for this year’s U.S. Thanksgiving and Black Friday will trickle out in the next couple days, but some big chains were already proclaiming Friday morning that the start to the holiday shopping season had a successful start.
The much-battered gold sector led advancers on the TSX, up almost two per cent, as December bullion rose $16.60 to US$1,254.40 a barrel. Kinross Gold (TSX:K) improved by 11 cents to C$5.05 while Goldcorp (TSX:G) rose 33 cents to $23.98.
The industrials sector was ahead 1.25 per cent with Canadian National Railways (TSX:CNR) ahead $1.90 to $120.40.
The energy sector rose 1.1 per cent while oil prices moved higher after losing ground during the last four sessions because of concerns of rising supplies in the U.S. Data released Wednesday showed inventories up last week for a 10th week in a row.
Oil has declined from about US$110 in September partially due to reduced tensions in the oil-rich Middle East, but mostly attributed to muted demand and high supplies.
On Friday, the January crude contract on the New York Mercantile Exchange climbed $1.32 to US$93.62 a barrel. Canadian Natural Resources (TSX:CNQ) advanced 58 cents to C$35.
Base metals climibed 0.15 per cent while December copper gained five cents to US$3.25 a pound. HudBay Minerals (TSX:HBM) climbed 18 cents to C$7.82.
The utilities sector was the main decliner, down 0.05 per cent.
Nova Scotia’s energy regulator has approved a revised agreement from energy company Emera (TSX:EMA) to proceed with the $1.5-billion Maritime Link project, which would ship hydroelectricity from the Muskrat Falls project from Newfoundland to Nova Scotia. Emera shares were down 29 cents to $29.16.
In other corporate developments, Saputo’s bid to buy Australia’s oldest dairy processor hit a snag Friday when a regulator ordered the Canadian cheese giant to take a two-month break in adding to its shares in Warrnambool Cheese and Butter. The Australian Takeovers Panel responded to an application from Murray Goulburn Co-operative by placing an interim order on the company (TSX:SAP), which has accumulated nearly 10 per cent of Warrnambool shares. Saputo gained 39 cents to $48.95.
In Europe, London's FTSE 100 index and Frankfurt's DAX gained 0.32 per cent while the Paris CAC 40 was ahead 0.12 per cent.