The Canadian Press
Toronto’s main stock index ended in negative territory Friday as investors contained some of their recent enthusiasm over commodities prices.
The S&P/TSX composite index shifted 47.59 points lower to 11,436.92, after four consecutive sessions of gains.
The Canadian dollar was at US95.75¢, rising 0.71 of a cent.
On the TSX, gold stocks took a beating and dropped 1.6%. The December gold contract on the New York Mercantile Exchange finished the day US$7.70 lower at US$1,048.60 an ounce.
Gold has been climbing in recent sessions as investors turned to commodities futures contracts as a safe haven from the declining U.S. dollar. This week alone, gold futures have climbed 4.5%.
Gold “had a big run and today it’s just a bit of pullback. There’s no clear direction as a result of today’s actions,” said Chris King of investment firm Morgan, Meighen and Associates.
“Some people are using it has a hedge for declines in the U.S. purchasing power, but I believe (others) are getting caught out by a short squeeze.”
South of the border there was a more optimistic tone as the Dow Jones Industrials closed above its high of the year.
The Dow was ahead 78.07 points to 9,864.94, beating its previous peak of the year of 9,829.87 on Sept. 22.
The Nasdaq composite index rose 15.35 points to 2,139.28 while the S&P 500 index gained 6.01 points to 1,071.49.
The U.S. dollar launched a rebound against some currencies on Friday after Federal Reserve chairman Ben Bernanke reassured markets that the U.S. central bank will wind down its extraordinary stimulus measures when the time is right. His comments were interpreted by some as a sign the Fed could boost interest rates sooner than anticipated.
The TSX energy sector ended down 0.3% as the November crude contract closed eight¢ higher at US$71.77 a barrel.
The TSX Venture Exchange rose 1.17 to 1,307.35.
On Monday, the TSX will be closed in observance of the Thanksgiving holiday, but U.S. markets will remain open even as Americans celebrate Columbus Day.
Meanwhile, Statistics Canada reported the unemployment rate fell for the first time in almost a year in September to 8.4% as the economy created jobs for the second consecutive month.
The U.S Commerce Department said the trade deficit declined 3.5% to US$30.7 billion in August, as imports fell on lower oil demand. Economists had expected the deficit to rise to US$33 billion, or 3.3% from July’s level, which was the highest in six months.
In Canada, shares of Bombardier (TSX:BBD.B) traded at their highest level in nearly a year, despite concerns about future financial results for the global aircraft and rail equipment manufacturer. Bombardier shares ended the day up a penny at $5.11 but well below their intra-day high of $5.35.
Discount retailer Dollarama Inc. (TSX:DOL) wrapped up its first trading day on the TSX with shares at $19.49. The opening day trading price was above its $300 million initial public offering, which was valued at $17.50 per share.
Life sciences company MDS Inc. (TSX:MDS) said it will sell its 600-employee Central Labs operation for $8 million to $12 million to Czura Thornton, a private investment group based in Jersey, Channel Islands. The company’s shares were down six¢ at $9.09.
Next week, investors will be assessing a spate of earnings reports from major U.S. companies, including financial firms like JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. Better-than-expected earnings from banks this year have been a big factor in the market’s rally in the United States.