“Shopping is Cheaper Than a Psychiatrist” -Tammy Fay Bakker
TSX Closes Higher
The Toronto stock market ended higher Friday amid a stronger than expected showing for third-quarter economic growth in Canada, while indications pointed to a successful start to the U.S. holiday shopping season. The S&P/TSX composite index was up 24 points to 13,395. The Canadian dollar weakened despite higher commodity prices and a report from Statistics Canada that gross domestic product grew at an annualized rate of 2.7% in the third quarter. That was better than the 2.5% pace that was expected. GDP growth in September was ahead 0.3% from the previous month versus the 0.2% rise that had been expected. The loonie lost 0.3 of a cent to 94.16 cents US as the greenback gained ground against other currencies.
U.S. indexes largely ran out of steam as New York markets operated on a shortened post-Thanksgiving session, which ended at 1 p.m. ET. The Dow Jones industrials closed down 10.92 points to 16,086.41, the Nasdaq ran ahead 15.14 points to 4,059.89, and the S&P 500 index was 1.42 points lower at 1,805.81. Black Friday has been traditionally the start to the busy shopping season, sandwiched between U.S. Thanksgiving and Christmas. It was named Black Friday because that is when retailers are said to begin moving out of the red and into the black, or becoming profitable.
Canada’s Economy Grows at Fastest Pace in Two Years
Canada’s economic growth was stronger than expected in the third quarter. Statistics Canada says the national gross domestic product grew at a 2.7 % annual rate, two-tenths of a point above estimates. The pace of growth was the fastest in two years, when the economy expanded by 3.5 %. For comparison purposes, the U.S. economy is expanding at a 2.8 % annual pace. The mining sector was a strong performer, as mining and oil and gas extraction were up 2.2 % in the quarter. There were also gains in the manufacturing, retail, and wholesale trade, finance and insurance sectors. The loonie gained a fifth of a cent to 94.67 cents US following the release of the data.
Market Update as of November 29, 2013
The TSX closed at 13395, down -83 points or -0.62% over the past week. YTD the TSX is up 6.81%.
The DOW closed at 16086, up 21 points or 0.13% over the past week.YTD the DOW is up 22.76%.
The S&P closed at 1806, up 1 points or 0.06% over the past week.YTD the S&P is up 26.65%.
The Nasdaq closed at 4060, up 68 points or 1.70% over the past week.YTD the Nasdaq is up 31.35%.
Gold closed at 1250, up 7.00 points or 0.56% over the past week.YTD gold is down -25.60%.
Oil closed at 93.01, down -1.82 points or -1.92% over the past week.YTD oil is up 0.48%.
The USD/CAD closed at 1.0614, up 0.0100 points or 0.95% over the past week.YTD the USD/CAD is up 7.47%.
Sources: Bloomberg, Investment Executive, advisor.ca