TSX moves up on China data, RIM rises on analyst upgrade

Toronto's main market was higher Friday, as traders were cheered by better-than-expected economic data out of China and as an analyst upgrade sent shares of Research In Motion (TSE:RIM) (NASDAQ:RIMM) higher.

Overnight, data out of China revealed that gross-domestic-product growth in China rose to 7.9% in the quarter and by 7.8% for the full year 2012.

Economists had been expecting fourth-quarter growth of 7.8%, according to separate surveys by Dow Jones Newswires and Reuters.

In Europe, Spain reported that industrial production fell 1.5% in November, missing expectations for a 2.5% rise. Italian industrial production fell 0.5%, missing forecasts for a 2.0% rise.

Back in Toronto as of about 12:30 p.m. EDT, the S&P/TSX Composite was higher by 54.76 points, or 0.43%, to 12,729.49, while the more junior S&P/TSX Venture Composite rose 0.27 points, or 0.02% to 1,233.42.

Gold futures for February slipped Friday after the positive economic data from China led the U.S. dollar higher. The yellow metal was lately down $2.00 to $1,688.80 an ounce.

Elsewhere, crude oil for February delivery edged down 41 cents to $95.53 a barrel as Reuter's/University of Michigan's consumer sentiment in the U.S. reported a drop in January.

Meanwhile, silver futures rose 4 cents to $31.85 an ounce, and the base metal copper contract added 1 cent to $3.67 a pound.

Gold giants were higher, with Kinross (TSE:K) lately up 0.75%, while Barrick Gold (TSE:ABX) rose 1.04%, and Goldcorp (TSE:G) gained 1.03%.

Toronto's main sectors were also posting gains Friday.

Materials rose 0.53%, with advances seen in Jaguar Mining (TSE:JAG) - up nearly 12% - while Romarco Minerals (TSE:R) and Northern Dynasty Minerals (TSE:NAK) moved ahead 6.06% and 3.32%, respectively.

Declines in the sector were seen in AuRico Gold (TSE:AUQ) – down 3.1%, despite announcing a 2013 production outlook of 190,000-220,000 gold ounces, noting that production in the second half of 2013 is expected to exceed production during the first half. 

Elsewhere in the sector, North American Palladium (TSE:PAL) and Semafo (TSE:SMF) fell 2.92% and 2.05%, respectively.

Scorpio Mining (TSE:SPM) shares advanced Friday after announcing fourth quarter and full year results for its Nuestra Senora operation in Mexico. 

In the fourth quarter, total plan throughput was 129,115 tonnes, compared to 127,478 tonnes in the third quarter. Total silver equivalent ounces produced, however, dropped to 521,295 versus 534,075 in the third quarter, despite higher silver and copper production, as zinc and lead output dropped sharply. For the full year, Scorpio produced 2.28 million ounces of silver equivalent. 

B2Gold Corp. (TSE:BTO)(OTCQX:BGLPF)(NAMIBIAN:B2G) reported Friday record production and revenues for its fourth quarter, as well as its 2013 forecasts, but shares fell as it predicted higher cash costs for this year. 

Energy was higher Thursday, with advances seen in Precision Drilling (TSE:PD), Petrobank Energy and Resources (TSE:PBG) and Athabasca Oil Corp. (TSE:ATH) – up 2.51%, 2.25% and 1.99%, respectively.

Declines were seen in Niko Resources (TSE:NKO), Cenovus Energy (TSE:CVE) and oilfield services and trucking company Mullen Group (TSE:MTL) – off 1.6%, 1.34% and 0.84%, respectively.

Financials were also ahead Thursday, with Manulife Financial (TSE:MFC) up 0.92% and the Royal Bank of Canada (TSE:RY) adding 0.52%, while Sun Life Financial (TSE:SLF) rose 0.85%. 

In other Canadian corporate news, shares of Research In Motion surged 6.54% after Jefferies & Co upgraded the stock to a buy rating ahead of the critical BlackBerry 10 launch at the end of January. Analyst Peter Misek cited optimism around the launch of the new operating system, and said he believes the company will be able to extend its corporate email technology onto rival platforms such as Android and iOS. 

On the economic front, Statistics Canada reported this morning that manufacturing sales hiked 1.7% in November to levels not seen since last May. Sales rose in 12 of 21 industries, representing about two-thirds of the manufacturing sector in this country.

StatsCan also reported that the number of people receiving regular Employment Insurance benefits in November edged down 4,500, or 0.8%, to 528,000, after little change in October.

*US/Europe*

U.S. stocks were slightly lower Friday, as a batch of mixed earnings reports and a drop in consumer sentiment tempered any cheer over the better-than-expected GDP growth in China.

The Dow was lately lower by 12.35 points to 13,583.67, the Nasdaq fell 13.35 points to 3,122.66, and the S&P 500 shed 3.16 points to 1,477.78.

So far, 70 per cent of the 57 companies within the S&P 500 that reported results prior to today beat analysts' expectations, according to Bloomberg.

In economic news, the Reuter's/University of Michigan's consumer sentiment index for January fell to 71.3, down sharply from 80.5 in December and well below economists' forecasts for 75.0. It was the lowest reading since December of 2011.

Earnings season continued Friday, with shares in General Electric (NYSE:GE) up 3.03% Friday as the company reported fourth quarter profit rose 8%, on higher revenue, topping Street estimates. 

The industrial conglomerate reported a fourth quarter net profit of $4.01 billion, or 38 cents a share, up from $3.73 billion, or 35 cents a share, a year earlier. Operating earnings for the latest quarter rising 13% to 44 cents, topping Wall Street estimates of 43 cents a share. Fourth-quarter revenues increased 4% to $39.3 billion, also beating expectations. 

Shares of Wall Street bank Morgan Stanley (NYSE:MS) shot up over 7% Friday, after it reported fourth quarter profits that beat estimates on high margins in its wealth management business and “solid” equity sales.

Chipmaker Intel Corp. (NASDAQ:INTC) was weighing down the Nasdaq, as its shares fell over 6% Friday, on a sharp decline in fourth quarter profits and an outlook that missed analysts’ expectations, as it continues to feel the effects of weaker PC sales.

For the first quarter of 2013, the company is expecting revenues of roughly $12.7 billion, and for the full-year it anticipates revenues will grow in the low single-digit percentage range. Analysts are calling for $12.9 billion in the first quarter and $54.29 billion for the full-year 2013.

Oilfield-services giant Schlumberger (NYSE:SLB) shares rose 3.24% Friday, despite earnings falling from the prior year period, as profit matched Street estimates and revenue beat consensus views. Net earnings for the fourth quarter fell to $1.36 billion, or $1.02 per share, from $1.41 billion, or $1.05 per share, in the year ago period. 

Financial services firm State Street Corp.'s (NYSE:STT) stock rose more than 5% Friday, after reporting fiscal fourth quarter earnings that topped analyst views.

On an adjusted basis, net income for the quarter was $521 million or $1.11 per share, compared to $454 million or 93 cents per share a year ago, while adjusted revenue grew 7% to $2.46 billion from $2.30 billion in the same quarter last year. Analysts polled by Thomson Reuters expected per share earnings of $1.00 on revenue of $2.36 billion.

Netflix (NASDAQ:NFLX) received an upgrade from Janney Capital, which gave the online streaming business a buy rating, citing several factors ahead of the company's fourth quarter report next week. Shares in the company rose over 3%. 

European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.36%, while the DAX led the CAC 40 lower. They fell 0.43% and 0.07% respectively. Reported by Proactive Investors 2 hours ago.