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The close: TSX rises, led by financials and railroad stocks

The Toronto Stock Exchange Broadcast Centre is shown in Toronto on June 28, 2013. THE CANADIAN PRESS/Aaron Vincent Elkaim

The Globe and Mail

Canada's main stock index rose on Friday in a broad-based rally that was led by financial and industrial shares, while lower oil prices weighed on energy stocks.

The Toronto Stock Exchange's S&P/TSX composite index closed up 68.99 points, or 0.42 per cent, at 16,353.46. Nine of the index's 10 main groups ended higher. For the week, the index rose 0.3 per cent.

Some of the most influential movers on the index were the country's major banks. The overall financial services group, which accounts for more than one-third of the TSX's weight, gained 0.6 per cent

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Royal Bank of Canada gained 0.76 per cent, Toronto-Dominion was up 0.43 per cent and Bank of Nova Scotia gained 0.42 per cent.

Industrials advanced 1.2 per cent as railroad stocks gained ground. Canadian Pacific Railway added 2.75 per cent after the company reported on Thursday fourth-quarter profit that beat analysts' estimates. Canadian National Railway rose 1 per cent.

Canadian manufacturing sales jumped 3.4 per cent in November, their biggest increase in 2-1/2 years, on strength in transportation equipment and petroleum and coal products, Statistics Canada said.

Kinder Morgan Canada Ltd. climbed 7 per cent to $17.91 after Canada's National Energy Board on Thursday set out a process for resolving permit disputes related to the company's Trans Mountain pipeline expansion project.

Tthe materials group, which includes precious and base metals miners and fertilizer companies, added 0.8 per cent. Barrick Gold Corp. climbed 1.6 per cent to $17.99. Gold futures rose 0.5 per cent to $1,333 (U.S.) an ounce.

Still, the energy group fell 0.35 per cent as U.S. crude prices settled 0.9 per cent lower at $63.37 (U.S.) a barrel.

The Canadian dollar weakened against its U.S. counterpart on Friday as lower oil prices offset domestic data showing the biggest increase in factory sales in 2-1/2 years, while investors prepared for another round of NAFTA talks next week.

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At 4 p.m. EST, the Canadian dollar was trading at $1.2507 (Canadian) to the greenback, or 79.96 cents (U.S.), down 0.7 per cent.

The currency traded in a range of $1.24 (Canadian)  to $1.2508. For the week, it fell 0.4 per cent.

"The market is really going to have to price in a negative risk premium on the Canadian dollar, driven primarily on the breakup risks of NAFTA," said Mark McCormick, North American head of FX strategy at TD Securities.

Wall Street rose on Friday, led by gains in consumer stocks, even as a possible government shutdown loomed.

The S&P 500 and the Nasdaq hit record closing highs, while the Dow ended the day higher after trading in a narrow range.

Nike Inc., Philip Morris International Inc and Home Depot Inc rose between 1.5 percent and 4.8 percent on upbeat analyst expectations, helping to boost the S&P 500. Conversely, losses in International Business Machines Corp and American Express capped gains on the Dow.

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The Dow Jones Industrial Average rose 53.91 points, or 0.21 per cent, to close at 26,071.72, the S&P 500 gained 12.27 points, or 0.44 per cent, to 2,810.3 and the Nasdaq Composite added 40.33 points, or 0.55 per cent, to 7,336.38.

For the week, the Dow rose 1.04 per cent, the S&P 500 added 0.86 per cent and the Nasdaq gained 1.04 per cent.

Nine of the 11 major S&P sectors were higher, led by a 1.1-per-cent gain in the consumer staples index and a 0.9-per-cent rise in consumer discretionary stocks.

A disappointing full-year profit forecast from IBM pushed its shares down 4 per cent, the biggest single-day loss since July.

American Express slipped 1.8 per cent after posting its first quarterly loss in 26 years and suspending share buybacks for the next six months.

"The market has a few jitters as the result of a potential shutdown," said Kevin Miller, chief executive of E-Valuator Funds in Bloomington, Minnesota. "From a longer-term perspective, corporate earnings are still strong, and we're about to engage in the benefits of tax reform."

The U.S. Senate was racing to avert a shutdown ahead of a midnight deadline on the spending measure amid lingering disagreements between Democrats and Republicans. Negotiations continued on Friday after Senate Democratic leader Chuck Schumer met with U.S. President Donald Trump at the White House to address the impasse.

Advancing issues outnumbered declining ones on the NYSE by a 1.98-to-1 ratio; on Nasdaq, a 2.51-to-1 ratio favoured advancers.

The S&P 500 posted 105 new 52-week highs and nine new lows; the Nasdaq Composite recorded 171 new highs and 30 new lows.

Volume on U.S. exchanges was 6.82 billion shares, compared to the 6.32 billion average over the last 20 trading days.

(Reuters)

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