North American stocks rose at the start of trading on Friday after the Group of Eight meeting ended with leaders expressing confidence in the global economic recovery but warning of the threat from rising commodity prices. As well, U.S. consumer spending rose 0.4 per cent in April, matching expectations.
The Dow Jones industrial average rose 54 points or 0.4 per cent, to 12,457. The broader S&P 500 rose 7 points or 0.5 per cent, to 1332. In Canada, the S&P/TSX composite index rose 79 points or 0.6 per cent, to 13,855.
Canadian bank stocks were again in focus after Royal Bank of Canada reported a 13 per cent gain in its quarterly earnings and boosted its dividend. However, the shares fell 2.3 per cent after it missed expectations. On Thursday, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce also reported quarterly results that missed expectations, though their share prices were relatively flat on Friday morning.
Research In Motion Ltd. fell 1.6 per cent after it announced that it is facing a class-action lawsuit over allegations that it misled investors. Meanwhile, an analyst at Jefferies said that the company could also face product delays, guidance cuts and waning carrier support, according to a report from Dow Jones.
However, Canadian commodity producers were strong, with Suncor Energy Inc. up 1.1 per cent, Potash Corp. of Saskatchewan Inc. up 1.4 per cent and Barrick Gold Corp. up 0.6 per cent.
Among U.S. stocks, banks were strong with JPMorgan Chase & Co. and Bank of America Corp. up 1.4 per cent each. Johnson & Johnson rose 1.3 per cent.
Intel Corp. lagged, falling 0.6 per cent. Some key defensive stocks were also lower, with McDonald's Corp. down 0.6 per cent and Procter & Gamble down 0.2 per cent.