Stockhouse @ the Bell: Stocks up on Fed’s optimism

Stockhouse Editorial
0 Comments| February 14, 2014


The TSX composite rose 60.73 points to 14,062.38 on Friday. The Dow was up 129.11 to 16,156.70, while NASDAQ rose 4.07 to 4,244.74.


The Canadian dollar was higher Friday despite data showing manufacturing shipments declined during December for the first time in since last August.
 
The loonie was off the highs of the morning but still up 0.08 of a cent to 91.18 cents.
 
Statistics Canada says manufacturing sales were down 0.9% in December, the first decrease since August 2013.
The agency says despite the December decline, manufacturing sales have risen in six of the last eight months and were 2.7% higher than in December 2012.
 
Oil prices slipped closer to $100 a barrel Friday as fresh U.S. economic data and higher-than-expected crude supplies pointed to weaker demand. By early afternoon in Europe, benchmark U.S. crude for March delivery was down 16 cents to $100.19 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, the Nymex contract eased two cents to close at $100.35.
 
Fed Chair Janet Yellen said economic growth has strengthened and there is “broad improvement” in the labor market. She repeated the Fed’s outlook for further stimulus reductions in “measured steps,” adding that only a “notable change in the outlook” for the economy would prompt policy makers to slow the pace.

Federal Open Market Committee officials have twice reduced the size of the monthly asset-purchase program, lowering bond buying to $65 billion in February from $85 billion last year.
 
U.S. stocks were up even as data showed factory production unexpectedly declined in January.
 
U.S. industrial output declined in January by the most since May 2009, adding to evidence severe winter weather weighed on the economy. The 0.8% decrease at manufacturers followed a revised 0.3% gain the prior month that was weaker than initially reported, figures from the Fed showed.
 


Active stocks included
 
Enbridge Inc. (TSX: T.ENB, Stock Forum) had a $267-million net loss in the fourth quarter as it recognized lower values for some of its assets and weaker operating results from energy services due to market conditions.
 
The Calgary-based pipeline and energy services company, which operates throughout North America, would have been profitable without the asset-related losses but still missed analyst estimates.


Cliffs Natural Resources Inc. (CLV, Stock Forum) gained 3.2% to $21.37. The U.S. iron miner being targeted by an activist shareholder reported earnings that beat analysts’ estimates. The board also appointed Gary Halverson, former president and chief operating officer, as chief executive officer.

Tags: ENERGY OIL & GAS MIDSTREAM

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