Futures Static Amid GDP, Jobs Data

T-D, CIBC in Focus

Canada's main stock index futures were little changed on Friday as investors took in Gross Domestic Product and jobs data.

The S&P/TSX Composite Index leaped 99.76 to end Thursday at 16,067.48

The Canadian dollar picked up 0.13 cents at 77.69 cents U.S. Friday morning.

December futures poked up 0.04 % Friday.

Enbridge shares jumped 6.3% on Thursday after North America's largest energy infrastructure company announced plans to sell $3 billion of non-core assets to focus on its "crown jewels."

Toronto-Dominion Bank and smaller rival CIBC rounded off a week of earnings announcements by Canadian banks on Thursday, reporting record profits, but they face headwinds in 2018 due to stricter mortgage rules and concerns about the potential for house price declines.

Canaccord Genuity upped the target on CIBC to C$126, while Credit Suisse raised the bank’s rating to outperform

Credit Suisse raises target price on T-D to $77.00 from $75.00

CIBC started coverage on Leon's Furniture with neutral rating and $21 price target

On the economic front, Statistics Canada reported that Gross Domestic Product rose 0.2% in September after edging down 0.1% in August.

Goods-producing (+0.4%) and services-producing (+0.1%) industries rose as 12 of 20 industrial sectors grew, led by the mining, quarrying and oil and gas extraction sector.

Growth in GDP slowed to 0.4% in the third quarter, following a 1.0% increase in the second quarter. Increased household final consumption expenditure (+1.0%) was the main contributor, while weaker exports (-2.7%) moderated growth.

The agency also declared that the economy created 80,000 jobs in November. The unemployment rate fell by 0.4 percentage points to 5.9%, the lowest rate since February 2008.

GDP was expected to show growth of 1.6% on an annualized basis for the third quarter. Experts were looking for an addition of 10,000 jobs in November, bringing the unemployment rate down to 6.2%.

Later this morning, the Markit Canada Manufacturing Purchasing Managers Index (PMI) is due for release.

On Thursday, StatsCan reported that Canada's current account deficit in the third quarter swelled to $19.35 billion, the third largest in history, as the country's international trade gap in goods continued to expand


The TSX Venture Exchange gained 9.05 points Thursday to 788.89


U.S. stock index futures cut earlier losses on Friday after the Senate showed signs of progress on coming to an agreement on a tax measure

Futures for the Dow Jones Industrials faded 15 points, or 0.1%, to 24,259

S&P 500 futures slipped four points, or 0.2%, at 2,644, while futures on the NASDAQ Composite index dropped 29.75 points, or 0.5%, to 6,339.25

Shifting focus, data will also be of key importance on Friday. Manufacturing PMI is due out at 9:45 a.m. ET, followed by the Institute for Supply Management report on business and construction spending — both of which are due out at 10 a.m. ET. No major earnings are expected to be released.

Futures initially fell after Senate Republicans delayed voting on their tax bill. The setback concerned a fiscal "trigger" that forced lawmakers to patch up the plan only hours before a planned final vote. Consequently, Senate Majority Leader Mitch McConnell said that senators would revise the legislation, with the group eyeing a vote to take place Friday.

But Republican Sen. Steve Daines said he would support the bill, increasing the likelihood of the measure passing.

Overseas, European stocks came under sharp pressure at noon local time, while Japan’s Nikkei 225 forged up 0.4%, but in Hong Kong, the Hang Seng Index fell 0.2%

Oil prices gained 49 cents to $57.89 U.S. per barrel.

Gold prices scraped up $1.20 to $1,277.90 U.S. an ounce.