Source: The Canadian Press

The Toronto stock market closed higher Friday amid data showing modest economic growth in Canada while commodity stocks advanced despite a dip in metal and oil prices.

The S&P/TSX composite index gained 112.15 points to 12,676.24 with all sectors positive.

The TSX Venture Exchange was 24.15 points higher at 1,950.31.

Statistics Canada reported that gross domestic product in August rose 0.3% following a 0.1% drop in July.

“The August data showed relatively broad-based growth after a disappointing July,” said RBC assistant chief economist Dawn Desjardins.

“This combination sets the economy on course to expand at a 1.8% annualized pace in the third quarter (assuming another 0.3% rise in September), just slightly slower than the second quarter’s 2% increase.”

The Canadian dollar moved higher following the report, up 0.12 of a cent to 98.02 cents US.

A report on U.S. economic growth did little to reassure investors.

U.S. gross domestic product advanced at a 2% annual rate in the third quarter, a small improvement over the 1.7% rate of the second quarter, but far short of what would be needed to reduce that country’s high unemployment rate.

The latest reading of U.S. economic growth reinforced views that the Federal Reserve will provide further stimulus. The U.S. central bank is expected to buy Treasury bonds in a process known as quantitative easing to stimulate the U.S. economy.

Ahead of an expected announcement by the Fed next Wednesday, there have been widely different estimates of the size of such easing.

“They’re all over the place,” said Kathryn Delgreco, investment adviser at TD Waterhouse, who also noted that this is the end of the fiscal year.

“Everyone has just wrapped everything up, books are getting cleaned up and squared away, no point in sticking your neck out when you have such strong potential volatility coming into the market next week.”

Investors were also cautious ahead of the U.S. midterm elections on Tuesday and the U.S. non-farm payrolls report on Friday.

The base metals sector was up almost 1% even as December copper fell five cents to US$3.73 a pound.

Thompson Creek Metals (TSX:TCM), the operator of two molybdenum mines in North America, ran ahead $1.32, or 12.04%, to C$12.28. The surge came amid a report that China will limit mining of the specialty metal beginning next year.

First Quantum Minerals (TSX:FM) climbed $1.56 to $89.31.

Caution ahead of next week’s Federal Reserve meeting and the U.S. elections helped depress oil prices, with the December crude contract on the New York Mercantile Exchange down 75 cents at US$81.43 a barrel.

The TSX energy sector was up 0.74% as Canadian Natural Resources (TSX:CNQ) gained 71 cents to C$37.13, while Imperial Oil (TSX:IMO) rose 45 cents to $39.22.

Gold stocks were also higher, with December gold on the Nymex ahead $15.10 at US$1,357.60 an ounce. Barrick Gold Corp. (TSX:ABX) improved by $1.05 to C$49.12.

Tech stocks also gained, with Research In Motion Ltd. (TSX:RIM) moving up 66 cents to $58.01 . RIM stock has surged about 15% this week on a new product rollout and takeover speculation.

The gain also came amid an announcement from teck trends firm IDC that Apple has surpassed BlackBerry maker Research In Motion to become the world’s fourth-largest mobile phone vendor due to its popular iPhone 4.

Financials also lifted the TSX with TD Bank (TSX:TD) ahead 70 cents at $73.45 and CIBC (TSX:CM) rising $1.39 to $78.23.

New York markets were listless as other data showed deteriorating consumer confidence. The University of Michigan’s consumer sentiment index fell to 67.7 in October from 68.2 in September as people worry about job prospects. Economists had expected a reading of 68.5.

The Dow Jones industrial average inched up 4.54 points to 11,118.49 on Friday.

The Nasdaq composite index edged up 0.04 of a point to 2,507.41, while the S&P 500 index dipped 0.52 of a point to 1,183.26.

The TSX was up a modest 75 points or 0.6% this week on rising mining stocks. The Dow industrials was flat, down 14 points.

Elsewhere on the corporate front, federal Industry Minister Tony Clement says he won’t extend the deadline for deciding whether to accept or reject an Anglo-Australian company’s bid for Potash Corp..

Clement insists he has not made a decision yet, but he adds one could come at any time before the Nov. 3 deadline for approval of BHP Billiton’s $38.6-billion offer. Meanwhile, Saskatchewan Premier Brad Wall says his Manitoba counterpart is supporting his call for Ottawa to reject the BHP bid. PotashCorp shares rose $1.50 to $147.50.

It was a relatively quiet day for earnings reports after investors digested a mixed bag this past week by several corporate heavyweight.

On Friday, paper and wood products producer Domtar Corp (TSX:UFS) reported $191 million, or $4.44 per share, of net income in the third quarter, on $1.47 billion in sales. Adjusted income was $4.26 per share, which was ahead of analyst estimates and its stock was up $4.88 at $80.88.

And aircraft parts maker Heroux-Devtek Inc. (TSX:HRX) reported second-quarter net income fell to $2.6 million, or eight cents per share, from $3.5 million, or 11 cents per share, a year ago. Consolidated sales rose to $83.2 million from $76.6 million. Its shares were up 23 cents at $5.98.

Microsoft Corp. reported a big jump in profits after markets closed Thursday due to increased spending by businesses on technology.

Microsoft’s net income rose 51% to US$5.4 billion, or 62 cents per share, from US$3.6 million, or 40 cents per share, in the same period last year.

Revenue increased 25% to US$16.2 billion, from US$12.9 billion a year ago and its shares rose 39 cents Friday to US$26.67.