Stocks in Canada’s largest market took a tumble by noon on Friday, with gold miners and other materials stocks leading a broad retreat from the three-day rally that started the year.
The S&P/TSX Composite dropped 84.99 points to greet noon at 15,501.59. Even so, the market was still in line for a 2.6% improvement on a week cut short by New Year’s Day.
The Canadian dollar leaped 0.47 cents to 75.67 cents U.S.
The most influential weights on the index included Tahoe Resources Inc, which fell 8.7% to $13.52 after the miner forecast 2017 capital spending above estimates, analysts said. Tahoe also said it expected flat gold production in 2017 and lower silver output, lagging consensus expectations.
Potash Corp declined 1.1% to $24.56, while Teck Resources lost 1.6% to $28.13. Copper prices declined 0.6% to $5,547.50 U.S. a tonne.
On the economic slate, Statistics Canada revealed that employment rose by 54,000, or 0.3%, in December, the result of gains in full-time work. The unemployment rate increased 0.1 percentage points to 6.9%, as more people participated in the labour market.
The agency also reported that Canada's merchandise trade balance with the world recorded its first trade surplus since September 2014, going from a $1- billion deficit in October to a $526-million surplus in November. Exports rose 4.3%, while imports were up 0.7%.
Western University's Ivey Purchasing Managers Index (seasonally-adjusted) for December was 60.8, compared to 56.8 in November, 49.9 in December 2015, and 55.4 in December 2014
ON BAYSTREET
The TSX Venture Exchange gave back 2.84 points to 791.42
All but three of the 12 TSX subgroups were in the red midday, with gold dulling in price 3.9%, materials sliding 3.1%, and health-care off 1.3%.
The three gainers were industrials and real-estate, each eking up 0.1%, and consumer discretionary stocks, up 0.02%.
ON WALLSTREET
U.S. equities rose on Friday as the technology sector led, while investors pored over key employment data.
The Dow Jones Industrials recovered 74.71 points to within sight of the psychologically-important 20,000-point mark, at 19,974, with Goldman Sachs and Walt Disney contributing the most gains.
The S&P 500 picked up 10.04 points to 2,279.04, to reach a new intraday high, with information technology advancing 0.8%.
The NASDAQ composite index galloped 39.82 points to 5,527.75, hitting a new all-time high. Leading the tech-heavy index higher were the so-called FANG stocks (Facebook, Amazon, Netflix and Google parent Alphabet), which all rose at least 1%.
The U.S. economy added 156,000 jobs in December, according to data from the U.S. Bureau of Labor Statistics. Economists expected an increase of 178,000. The unemployment rate came in at 4.7%, in line with expectations.
Other data released Friday included November factory orders, which fell 2.4%, more than expected.
Prices for the benchmark 10-year Treasury note faded, raising yields to 2.41% from Thursday’s 2.36%. Treasury prices and yields move in opposite directions.
Oil prices added 30 cents to $54.06 U.S. a barrel
Gold prices lost $7.90 to $1,173.40 U.S. an ounce.
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