Canada's main stock index made its way slightly into positive country 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 eked up 1.43 points to greet noon at 16,229.23
The Canadian dollar zoomed 0.42 cents to 75.27 cents U.S.
Shares of Enghouse Systems gained $1.47, or 4.3%, to $35.73, after the company reported quarterly revenue above expectations.
Transcontinental Inc fell 94 cents, or 6.2%, the most on the TSX, to $14.13, after multiple analysts cut price targets on the company following quarterly results.
Royal Bank of Canada cut the price target on Saputo to $50.00 from $52.00. Saputo shares docked $2.99, or 7%, to $39.94.
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 1.69 points to 596.89
Eight of the 12 Toronto subgroups remained positive midday, as information technology gathered 1.3%, health-care shot higher 1%, and industrials picked up 0.3%.
The four laggards were saddled most by gold, sinking 1.1%, materials, dipping 0.7%, and consumer staples, off 0.6%.
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 vaulted 261.98 points, or 1%, to pause for lunch Friday at 25,982.64, led by gains in Microsoft and Apple.
The S&P 500 gained 30.63 points to 2,873.87, as the tech sector outperformed.
The NASDAQ Composite popped 119.99 points, or 1.6%, to 7,775.54.
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 had gained 3.3%, and NASDAQ was up 2.2% this week.
Treasury yields fell, and bank shares followed them. Citigroup slipped 0.9% while J.P. Morgan Chase slid 1% and Bank of America dipped 1.2%.
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 2.09% from Thursday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.54 to $54.13 U.S. a barrel.
Gold prices gained $4.10 at $1,346.80 U.S. an ounce.
