Canadian Stocks Crash Back To Earth, TSX Drops 247 Points -- Canadian Commentary

(RTTNews) - Canadian stocks were hammered Friday, giving back a big chunk of their recent gains as traders bet equities were overvalued.

The TSX Composite Index plunged 247.73 points, or 1.57 percent, to 15,533.47, falling further from record highs seen earlier this week.

However, U.S. stocks raced higher in the final moments of trading, with the Dow Jones Industrial Average running its win streak to an astonishing eleven sessions.

Encouraging earnings news from the financial sector failed to inspire much optimism on Bay Street. Also, Canada's annual inflation rate unexpectedly jumped to 2.1 percent in January, its highest for more than two years.

Royal Bank of Canada (RY.TO) beat estimates as its first quarter profit jumped 24%. Still, shares were down 1.6%.

Net income rose to $3.03 billion, from $2.45 billion a year ago with earnings per share rising to $1.97 per share, compared with $1.58 a year earlier.

Auto parts maker Magna International (MG.TO) reported a disappointing quarterly profit on higher costs. Shares dropped 4.7%.

Oil producer Husky Energy (HSY.TO) posted a fourth-quarter profit, compared with a year-earlier loss. Shares fell 5.3%.

MacDonald, Dettwiler and Associates Ltd. (MDA.TO) and DigitalGlobe, Inc. (DGI) announced a merger agreement, pursuant to which MDA will acquire DigitalGlobe for $35.00 per share in a combination of cash and stock.

MDA shares plunged 7%.

Energy stocks were weak, as Nymex April oil futures ended 46 cents lower at $53.99 a barrel

The US oil-rig count increased by five to a total of 602 this week, according to Baker Hughes.  That's nearly double the lowest point after the oil market crash a few years ago.

In economic news, Stats Canada's Consumer Price Index rose 2.1% on a year-over-year basis in January, following a 1.5% increase in December.

On a seasonally adjusted monthly basis, the Consumer Price Index was up 0.7% in January, after increasing 0.4% in December.