The Toronto stock market was lower Friday as weak U.S. jobs data added to worries that the global economy is slowing faster than previously thought.
The S&P/TSX Composite Index plummeted 156.04 points, or 1.3%, to greet noon at 11,660.99
The Canadian dollar slipped 0.53 cents at 98.05 cents U.S.
On the TSX, the energy sector fell sharply as crude prices fell sharply despite interest rate cuts announced Thursday by the European and Chinese central banks. Suncor Energy gave back 76 cents to $29.64 and Canadian Natural Resources was down 75 cents at $26.79.
The base metals sector fell hard, as diminished demand prospects also pushed metal prices lower with the September copper contract on the Nymex off seven cents to $3.43 U.S. a pound. Teck Resources lost $1.04 to $31.92 and First Quantum Minerals was 79 cents lower at $18.73.
The gold sector lost strength as Kinross Gold Corp. faded 15 cents to $8.66 and Goldcorp Inc. was off 39 cents to $38.91.
The financials sector declined while Scotiabank was down 68 cents to $53.20 while Manulife Financial dropped 26 cents to $10.98.
Industrial stocks also weakened with Bombardier three cents lower at $4.17.
In corporate news, Pengrowth Energy Corp. is reducing its monthly dividend payments to shareholders by 43% to four cents a share starting next month. The Calgary-based company says it’s making the change due to weak commodity prices and increased uncertainty in the capital and property markets and its shares fell 43 cents or 6.4% to $6.18.
Canadian Pacific Railway says Tony Ingram has resigned as a director, the third departure from the CP board since the Calgary-based company’s annual meeting in May. As a result of the departures and the addition of Hunter Harrison as a director and chief executive officer of the company, the nominees put forward by Pershing Square have a majority on the 14-member board of directors. CP stock declined 80 cents to $74.96.
Network technology company Sandvine Corp. had a loss of $4.2 million U.S. or three cents a share in its second quarter. But the bad news was tempered by more than $2 million in orders from one of the top 10 telecom providers in the United States, but it didn’t identify the customer. Sandvine had $18.6 million U.S. in revenue for the three-month period and its shares added four cents to $1.38.
Economically speaking, figures released by Statistics Canada showed that in June, employment was little changed for the second consecutive month and the unemployment rate edged down 0.1 percentage points to 7.2%, as fewer people searched for work.
Compared to June 2011, employment increased 1.0% or 181,000. At the same time, full-time work was up 222,000, up 1.6%, while part-time work was little changed.
Elsewhere, the agency said that building permits were up 7.4% to $7.0 billion in May, a five-year high.
ON BAYSTREET
The TSX Venture Exchange subsided 19.56 points to 1,206.89. The Nasdaq Canada index fell 2.94 points to 356.38.
All 14 Toronto subgroups remained negative by midday, weighed by metals and mining, off 3.3%, global base metals, down 2.2%, and gold, losing 2% of its sheen.
ON WALLSTREET
The weaker-than-expected jobs report dominated investors' attention Friday, pushing all three major stock indexes down more than 1%.
The Dow Jones Industrials fell 184,78 points, or 1.4%, to break for lunch at 12,711.89
The S&P 500 shrank 17.59 points to 1,349.99. The Nasdaq Composite Index tumbled 49.20 points to 2,926.92
The technology sector added to investors' concerns after two companies, Seagate Technology and Informatica reported weaker-than-expected quarterly results. Shares of Informatica, which enterprise software for corporations, dropped nearly 30%.
Other key technology companies traded off on fears that slowing global growth could weigh down the entire sector. Shares of other enterprise data companies Teradata, Citrix, and Autodesk also inked steep losses.
Economically speaking, the U.S. Labor Department's jobs report, which showed that the economy added just 80,000 jobs in June, came in below expectations and points to signs of a deceleration in employment growth.
After a string of weak monthly jobs numbers and an unemployment rate unchanged at 8.2%, Friday's report will likely fuel argument for increased intervention by the Federal Reserve.
Still, investors are wary that the jobs numbers may not have been weak enough to spur the central bank into action when its governors meet at the end of July.
Meanwhile, governments around the world have increasingly become dependent upon action by their central banks as the global fiscal crisis continues.
International Monetary Fund director Christine Lagarde said debt problems have spilled over borders. In her speech on Friday in Japan, Lagarde said the IMF will revise down its next global forecast, due in 10 days.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.54% from 1.60% late Thursday. Treasury prices and yields move in opposite directions.
Oil for August delivery backtracked $2.72 to $84.50 U.S. a barrel.
Gold futures for August delivery dropped $22.40 to $1,587.60 U.S. an ounce.
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