Canada's main stock index edged higher on Friday, after data showed a higher-than-expected addition of jobs in May and a dip in unemployment rate to a record low.
The S&P/TSX Composite Index fought its way up 8.46 points to open the week’s last session at 16,236.26
The Canadian dollar grew 0.39 cents to 75.24 cents U.S.
Shares of Enghouse Systems gained $1.22, or 3.6%, to $35.48, after the company reported quarterly revenue above expectations.
Transcontinental Inc fell 74 cents, or 4.9%, the most on the TSX, to $14.33, after multiple analysts cut price targets on the company following quarterly results.
Canaccord Genuity raised the price target on Dollarama to $40.00 from $37.00. Dollarama doffed 24 cents to $43.65.
Royal Bank of Canada cut the price target on Saputo to $50.00 from $52.00. Saputo shares docked $1.93, or 4.5%, to $41.00.
Canadian Imperial Bank of Commerce raised the target price on Just Energy Group to $5.50 from $4.50. Just Energy collected 12 cents, or 2.3%, to $5.43.
CIBC also cut the target price on Canfor to $1.25 from $1.50. Canfor shares took on eight cents to $8.83.
On the economic schedule, Statistics Canada said the economy added 27,700 net new jobs in May after economists predicted a gain of 8,000 positions from April and a jobless rate of 5.7%. The current unemployment rate at 5.4% was the lowest since comparable data became available in 1976.
ON BAYSTREET
The TSX Venture Exchange regained 1.66 points to 596.86
Seven of the 12 Toronto subgroups started the day on the upside, as information technology gathered 0.8%, real-estate gained 0.5%, and utilities picked up 0.4%
The five laggards were led by consumer staples, off 0.5%, gold slid 0.3%, and communications ditched 0.2%.
ON WALLSTREET
Stocks jumped on Friday, building on strong weekly gains, as weak economic data increased the odds of easier monetary policy from the Federal Reserve.
The Dow Jones Industrial Average leaped 227.21 points to begin Friday at 25,947.87, led by gains in Microsoft and Apple.
The S&P 500 gained 25.15 points to 2,868.64, as the tech sector outperformed.
The NASDAQ Composite regrouped 85.31 points, or 1.1%, to 7,700.86.
The Dow was up 3.7% this week heading into Friday’s session. It was also on pace to snap a six-week winning streak. The S&P 500 picked up 3.3%, and NASDAQ was up 2.2% this week.
Treasury yields fell, and bank shares followed them. Citigroup slipped 0.6% while J.P. Morgan Chase slid 0.9% and Bank of America dipped 1%, respectively.
The U.S. economy added 75,000 jobs in May, marking the second straight month of monthly jobs growth below 100,000. Economists polled by Dow Jones expected an increase of 180,000 jobs. Wage growth also slowed.
Market expectations for a Fed rate cut in June rose to 27.5% from 16.7% after the data release. The market is also pricing in a 79% chance of lower Fed rates by July.
Prices for the benchmark 10-year U.S. Treasury leaped, lowering yields to 2.07% from Thursday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices gained 78 cents to $53.37 U.S. a barrel.
Gold prices gained $5.50 at $1,348.20 U.S. an ounce.
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