TSX racks up solid gain after string of losses

Research In Motion Ltd. (TSX:RIM) shares were up 94 cents or 6.87% to $14.63 after its chief executive said the BlackBerry maker needs substantial change after posting a US$125-million quarterly loss. RIM’s revenue fell $1.4 billion to $4.2 billion as the company loses market share to Apple’s iPhone and devices using Google’s Android operating system.

Another reason for the gain was that “the CEO made the point that ‘we’re renewing our focus on the corporate market, which has been our real area of strength’, and that’s a recognition of the fact that their key competitive advantage in the core market have been in the corporate market,” said Robert Gorman, chief portfolio strategist at TD Waterhouse.

“While they have consumer-friendly devices, that’s not their principal focus and their 80 million subscribers are to a great extent in that corporate market and that can be a very, very attractive niche.”

The Canadian dollar dipped 0.08 of a cent to 100.25 cents US, a day after the Conservative government announced it is trimming $5.2 billion in annual federal spending and cutting thousands of public sector jobs while raising the age of eligibility for old age security to 67 from 65, starting a decade from now.

Traders also took in data showing that the economy grew by 0.1% in January, which was in line with expectations.

Statistics Canada said that gains in manufacturing were partly offset by a decline in oil and gas extraction in January.

U.S. markets were mainly higher even as a regional manufacturing survey from the U.S. raised further concerns about the pace of the global recovery.

The Chicago purchasing managers index, a snapshot of manufacturing in the Midwest, decelerated in March but marked its fifth straight month above 60. The PMI fell to 62.2 from 64 in February, against estimates of a reading of 63.6.

The Dow Jones industrials was ahead 66.22 points to 13,212.04.

The Nasdaq composite index was 3.79 points lower to 3,091.57 and the S&P 500 index rose 5.19 points to 1,408.47.

Other economic data showed that U.S. consumers boosted their spending in February by the most in seven months, up 0.8%. But Americans’ income only grew a slight 0.2% and the saving rate fell to its lowest point in more than two years.

North American stock markets have lost ground this week as a series of economic reports, including disappointing data on consumer confidence and durable goods orders, raised concerns about the pace of the American economic revival. Traders also worried that stock market gains since the lows of last October may not be justified by the pace of the global economic recovery.

“Since October, we had this tremendous move and we have been pretty positive,” added Gorman.

From early October to early March, the TSX gained 13.6%.

“But I must say when you have that big a move, it’s typically two steps forward and one back and so, we’re probably going to have some kind of retrenchment here.?”

At the end of the third quarter, the TSX is up 3.65% year to date, down from the highs of the year because of slumping materials stocks. But a big runup in tech stocks has helped push the Dow up 8.13% and the Nasdaq ahead 18.7%.

Commodity prices and in turn resource stocks particularly suffered because of concerns that demand for oil and metals could falter.

On Friday, the May crude contract on the New York Mercantile Exchange climbed 24 cents to US$103.02 after losing more than $4 over the last two sessions. The TSX energy sector was up 0.6% as Canadian Natural Resources (TSX:CNQ) rose 60 cents to $33.06 and Talisman Energy (TSX:TLM) advanced 15 cents to $12.54.

The base metals sector was ahead 0.88% while copper rose three cents to US$3.83 a pound after losing over nine cents earlier in the week. Teck Resources (TSX:TCK.B) climbed 91 cents to $35.61 and Ivanhoe Mines (TSX:IVN) climbed 13 cents to $15.69.

The gold sector gained 1.28% as bullion ran up $17 to US$1,671.90. Goldcorp Inc. (TSX:G) moved 65 cents higher to $44.96.