Stocks in Toronto settled soon after Friday’s opening bell, as investors digested horrific bank news south of the border, and jobs numbers here at home.
The S&P/TSX Composite Index dipped 57.07 points to begin the day at 11,679.10
The Canadian dollar jumped 0.49 cents to 100.30 cents U.S.
Among stocks to watch this morning, oil and gas producer Enerplus Corp. reported a loss for the first quarter as prices of dry gas and natural gas liquids fell and the company said it was looking to sell some of its assets.
Broadcast equipment marker Miranda Technologies Inc. reported a lower quarterly profit on foreign exchange losses.
Celtic Exploration Ltd. posted a first-quarter loss on lower gas prices and lowered the production forecast hit by gas plant outages in Alberta.
Osisko Mining Corp. reported a profit on Thursday as it ramped up production at its Canadian Malartic gold mine, but a fire that broke out there Wednesday night shut down operations.
Metals whiz North American Palladium Ltd. posted a narrower first-quarter loss as production at its flagship mine in Ontario rose.
Economically speaking, Statistics Canada reported this morning that employment increased by 58,000 in April, mostly in full-time work. However, with more people searching for work, the unemployment rate increased by 0.1 percentage points to 7.3%.
ON BAYSTREET
The TSX Venture Exchange slipped seven points to 1,348.31, while the Nasdaq Canada gained 0.75 points to 380.22.
In all, 10 of the 14 Toronto subgroups suffered, weighed mostly by global base metals, down 1.8%, gold, off 1.7%, and materials, sliding 1.4%.
The four gainers were led upward by industrials, ahead 0.5%, while health0-care and utilities picked up 0.2% each.
ON WALLSTREET
A selloff in financial shares rattled the broader U.S. stock market Friday after banking giant JPMorgan said it would suffer a $2-billion U.S. trading loss.
The Dow Jones Industrials settled 47.41 points to begin the day at 12,807.63
The S&P 500 faded 3.55 points to 1,354.44. The tech-rich Nasdaq Composite Index moved forward, however, 5.72 to 2,939.36.
Bank stocks weighed on the market. Shares of Citigroup, Morgan Stanley, Bank of America, Goldman Sachs and Wells Fargo fell between 1.5% and 4%.
The technology sector was supported by shares of chip maker Nvidia, which rose 9% on better-than-expected quarterly results.
JPMorgan Chase reported the $2-billion U.S. loss after the market closed Thursday. CEO Jamie Dimon cited "errors" and "bad judgment" in trades meant to hedge risk. The bank's shares fell more 9% early Friday.
The loss not only damaged the reputation of JPMorgan, which had come through the financial crisis of 2008 in relatively good shape compared to its Wall Street rivals, but it also raised worries whether conditions since April would cause more unreported losses at other big banks.
Arguments in favour of proposed regulations that limit the trading that banks can do with their own money, known as the Volcker Rule, were also fueled by the big bank's loss. Dimon has been one of the most vocal critics of the Volcker Rule.
Shares of upscale retailer Nordstrom fell after it reported earnings of 70 cents U.S. a share, which fell five cents U.S. short of forecasts, despite revenue that was roughly in line with forecasts.
U.S. shares of Sony fell further in early trading after it sank 6.5% in Tokyo to a multi-decade low for the stock in its home market. Sony reported lower earnings after the close of the market in Tokyo on Thursday, which hit before the New York exchange open.
Greek politicians are still struggling to form a coalition government, which makes the future of austerity measures and a European bailout of its debt unclear.
Spain announced a new round of bank reforms Friday, including independent audits of all Spanish banking assets, and requirements for more reserves to protect against real estate loan losses, in an effort to assure investors about the banks' viability. The rules come two days after Spain partially nationalized one of its largest banks.
The yield on the Spanish 10-year bond edged back above the 6% benchmark that raises alarms with investors.
Meanwhile, further worries about weaker-than-expected economic growth in China could weigh on markets. A report from China Friday showed an unexpected drop in the rate of industrial production growth, which could feed fears of a so-called hard landing for the world's number-two economy.
On the economic slate, lower energy prices took wholesale prices down 0.2% in April, according to the U.S. Labor Department's producer price index. Economists surveyed by Briefing.com had expected prices to be unchanged from March. But stripping out volatile food and energy prices left core wholesale prices up 0.2%, which matched forecasts.
Also this morning, the University of Michigan releases its consumer sentiment index. Economists surveyed by Briefing.com predict the index to come in at 75, lower than last month's revised tally of 76.4.
The price on the benchmark 10-year U.S. Treasury gained ground pushing the yield down to 1.85% from Thursday’s 1.88%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell back a dollar to $96.08 U.S.
Gold futures for June delivery tumbled $14.10 to $1,581.40 U.S. an ounce.
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