Source: The Canadian Press

The Toronto stock market closed higher as oil prices and energy stocks ran ahead despite data which showed that U.S. economic growth in the first quarter wasn’t as great as originally thought.

The S&P/TSX composite index closed up 37.67 points to 11,707.85 on lower than usual volume with many traders working from home or on holiday while Toronto prepares to host the G20 summit this weekend.

Gains would have been even higher had it not been for a disappointing earnings report from Research In Motion Ltd.

The TSX Venture Exchange climbed 6.97 points to 1,458.72.

The Canadian dollar rose 0.72 of a cent to 96.53 cents US.

Stocks had been down after the U.S. Commerce Department reported that gross domestic product rose by 2.7% in the January-to-March period, less than the 3% estimate released last month. It was also much slower than the 5.6% pace in the previous quarter.

“The growth that was anticipated is certainly moderating,” said Jennifer Dowty, portfolio manager at MFC Global Investment Management.

“It’s going to be a slow recovery, this is a global financial crisis that is still ongoing, it hasn’t been resolved. And hopefully there will be some proposals that will emerge from the G20 meeting over the weekend. That could give some optimism perhaps to the market.”

Meanwhile, shares in RIM (TSX:RIM) lost $7.01 or 11.47% to $54.08 after the company delivered quarterly earnings of US$768.9 million after the markets closed Thursday, which beat analyst estimates. However, revenue missed forecasts, coming in at $4.24 billion, below the $4.32 billion estimated, but higher than the $3.42 billion a year ago.

“In the last year, it was on earnings and a lot of companies were beating due to improving margins and cost cutting,” Dowty said.

“But now we really need to see some traction in the market, some evidence that consumers are out there spending and the economy is recovering and with lacklustre top-line revenue, that’s not a confirmation that we are seeing that recovery.”

Oil prices were higher with the August crude contract on the New York Mercantile exchange ahead $2.35 to US$78.86 a barrel, with prices getting a boost as the euro rose against the U.S. dollar. Since oil is priced in dollars, it becomes more appealing to holders of foreign currency as the dollar weakens. The TSX energy sector was up 1% and Canadian Natural Resources (TSX:CNQ) rose 27 cents to C$36.71 while Canadian Oil Sands Trust (TSX:COS.UN) climbed 40 cents to $28.75.

The gold sector strengthened as bullion headed higher for a second day. The August bullion contract on the New York Mercantile Exchange climbed $10.30 to US$1,256.20 an ounce. Barrick Gold Corp. (TSX:ABX) gained $1.53 to C$48.08 while Goldcorp Inc. (TSX:G) was up $1.01 to $47.10.

The base metals sector rose 1.39% as the July copper contract rose nine cents at US$3.10 a pound. Teck Resources (TSX:TCK.B) was ahead 53 cents to C$35.02 and Western Coal Corp. (TSX:WTN) advanced 20 cents to $4.79.

Shares of Magna International (TSX:MG.A) slipped 67 cents to $72.33 after the Ontario Securities Commission delayed a shareholder vote on a plan to buy voting control of the firm from founder Frank Stronach because shareholders were not given enough information.

It was not immediately clear when a vote could be held, but Magna still has until Aug. 31 until the proposal expires.

New York markets were mainly weak with the Dow Jones industrial average 8.99 points lower to 10,143.81.

The Nasdaq composite index was ahead 6.06 points to 2,223.48 while the S&P 500 index gained 3.07 points to 1,076.76.

U.S. lawmakers agreed Friday on a bill that overhauls the rules that govern banks and investment firms. The bill would regulate banks’ ability to trade in derivatives, which are complex securities that companies and investors often use to hedge against losses. But the rules are less strict than investors had feared.

Some types of derivatives have been blamed for contributing heavily to the collapse of the U.S. housing market and the 2008 financial crisis.

Worries that the economic recovery isn’t as robust as earlier thought pushed the TSX down 2.1% this week and the Dow lost 2.9%.

Meanwhile, investors are waiting to see what news comes out of the G20 meeting being held this weekend in Toronto. The world economy, including Europe’s debt problems, will dominate the talks.

In other corporate news, Bombardier Inc. (TSX:BBD.B) shares rose four cents to $5.07 after the company was selected as the winning bidder for a half-ownership in the engineering division of Russian Railways, beating out a German rival in terms of both price and technology.

Arise Technologies Corp. (TSX:APV) will transfer some of its employees to a new joint venture that will be funded by a multinational company headquartered in Beijing. The joint venture formed by Arise and Sky Solar (Canada) Ltd. will supply engineering, procurement and contracting (EPC) services for solar projects under an Ontario provincial government program that was announced last October. Arise shares jumped 1.5 cents or 6.67% to 24 cents.

Stem Cell Therapeutics Corp. (TSXV:SSS) shares plunged 3.5 cents or 38.89% to 5.5 cents on heavy volume of 21.9 million shares. The small Calgary research firm said it still can’t explain definitively why stroke victims who received its drug didn’t do any better than those who got a placebo in a controlled trial. The company says it will ask the FDA for permission to proceed with the next stage of trials anyway.