TSX Tumbles as Investors Take in Jobs Figures

Banks again in Forefront


Canada's main stock index opened lower on Friday after data showed the economy added more-than-anticipated jobs in November, while falling bullion prices further weighed on the index.

The TSX Composite lost 100.26 points to open Friday at 20,425.19.

The Canadian dollar handed back 0.2 cents to 74.18 cents U.S.

Canada's largest pension fund CPP Investments is set to raise $372 million in its first "reverse inquiry" bond on Dec. 9, where lenders Royal Bank of Canada and CIBC would be the underwriters to the offer.

On the economic bulletin board, Statistics Canada said the economy created but 10,000 jobs in November, bringing the unemployment rate down 0.1 percentage points to 5.1%.

ON BAYSTREET

The TSX Venture Exchange dipped 3.4 points to 595.78.

All but two of 12 subgroups were negative in the first hour, with gold down 1.4%, materials off 0.9%, and utilities subsiding 0.7%.

The two gainers were energy and information technology, each progressing 0.8%.

ON WALLSTREET

Stocks slid Friday as investors digested hotter-than-anticipated jobs data, which worried investors looking for signals that the Federal Reserve can begin slowing interest rate hikes.

The 30-stock index backtracked 190.21 points to open Friday at 34,204.80.

The S&P 500 skidded 34.37 points to 4,042.20, as all 11 sectors besides energy traded down, led by information technology’s 1.4% drop.

The NASDAQ dropped 114.22 points, or 1%, to 11,371.09.

The S&P 500 and the NASDAQ are on track for modest weekly gains, while the Dow is on pace for a minor loss.

Non-farm payrolls increased 263,000 in November, a bigger gain than the 200,000 increase expected by economists polled by Dow Jones. The unemployment rate held steady at 3.7%.

This is the final monthly employment report before the Fed’s two-day meeting Dec. 13-14, in which the central bank is expected to raise its fed funds target rate by a half percentage point. A 50 basis point increase would mark a slowing from the prior 75 basis point rate hikes set by the central bank.

Marvell Technology shares slid 4.9% in the premarket after the chip makers reported quarterly sales and profit fell short of Wall Street estimates and a weaker than expected outlook. The company said its being hurt by inventory reductions from customers.

Zscaler fell 9.1% on its report of conservative guidance despite an expectation-beating quarter. Zscaler said customers are taking longer to close new deals.

Prices for the 10-year Treasury sagged, raising yields to 3.61% from Wednesday’s 3.51%. Treasury prices and yields move in opposite directions.

Oil prices increased 59 cents to $81.81 U.S. a barrel.

Gold prices subtracted $18.20 to $1,797 U.S. an ounce.