Stocks Thumped at Noon

Suncor, Bombardier in Spotlight

Equity issues in Toronto fell on Friday as energy stocks, hurt by a sharp fall in oil prices, led broad declines.

The S&P/TSX Composite Index stumbled 86.45 points to greet noon at 15,689.85

The Canadian dollar regained 0.15 cents to 79.72 cents U.S.

Markets in Canada will be closed Monday for Thanksgiving.

Suncor Energy and Canadian Natural Resources were the most influential movers on the index. Suncor fell 0.8% to $43.69, while Canadian Natural Resources declined 1.6% to $41.34. Encana Corp dropped 2.4% to $14.02.

The energy group slumped after oil prices fell on profit-taking as well as renewed concerns about oversupply. Prices snapped a multi-week bull run (see below).

Bombardier Inc rose 0.7% to $2.21. Reuters reported the plane and train maker spent $2.4 billion in the United States last year, tapping more than 800 suppliers in all but three U.S. states.

The report also shows the potential impact on the U.S. economy and companies if Bombardier’s new CSeries jetliner is kept out of the U.S. market by a trade dispute with Boeing Co.

The materials group, home to mining and other resource firms, lost ground. Gold miners lost ground as bullion prices fell, with Goldcorp Inc shares down 1.4% at $16.44.

On matters economic, Statistics Canada reported that our economy created 10,000 jobs in September, keeping the unemployment rate at 6.2%, matching the low of October 2008.

Western University's IVEY Purchasing Managers' Index grew to 59.6 in September, from 56.3 in August, and upward from 58.4 in September 2016. The index, which compiles reports from company purchasing managers, monitors their buying activity during the month, and any reading above 50 indicates expansion.

ON BAYSTREET

The TSX Venture Exchange jettisoned 1.67 points to 783.10

All but three of the 12 TSX subgroups were lower by noon, with energy fading 1.9%, health-care plummeting 1.1%, and industrials 0.7% to the bad.

The three gainers were gold, up 0.4%, consumer discretionary stocks, up 0.2%, and utilities, edging up 0.1%.

ON WALLSTREET

U.S. stocks traded lower on Friday after data showed the labor market experienced its first contraction in seven years.

The Dow Jones Industrials docked 38.46 points from Thursday’s record, to 22,736.93, with Chevron and Boeing contributing the most to the losses.

The S&P 500 retreated 7.91 points from Thursday’s all-time record to 2,544.16, with energy and telecommunications leading decliners.

The NASDAQ demurred 8.4 points over Thursday’s record high to 6,576.24

The U.S. lost 33,000 jobs September due large part to two major hurricanes hitting the country. Last month markets the first time the U.S. labour market contracted since 2010. Economists had forecast a gain of 90,000 jobs.

Yet, despite the weak headline number, average hourly earnings rose to an annualized rate of 2.9%. Hourly earnings are closely watched by investors looking for indications on inflation. The unemployment rate also fell to a 16-year low of 4.2%.

Prices for the benchmark 10-year Treasury note lost some ground, raising yields to 2.36% from Thursday’s 2.35%. Treasury prices and yields move in opposite directions.

Oil prices ditched $1.47 a barrel to $49.32 U.S.

Gold prices regained $4.10 to $1,277.30 U.S. an ounce