Canada's main stock index looked set to open higher on Friday, helped by better-than-expected euro-zone manufacturing data and news that U.S. job growth grew modestly in January and that gains in the previous two months were bigger than initially reported.
The S&P/TSX Composite Index erased 109.20 points to greet the close Thursday at 12,685.24, with this morning’s stock futures up 0.3%.
The Canadian dollar slid 0.11 cents to 100.15 cents U.S. early Friday.
Canadian Oil Sands posted a 4.7% drop in fourth-quarter profit on Thursday, despite higher production, as oil prices fell.
Elsewhere, Barrick Gold Corp has started a process to sell its oil and gas unit, Barrick Energy, as it seeks to offload non-core assets.
Sears Canada, struggling with shrinking sales and the looming arrival of Target Corp on the Canadian retail scene, said on Thursday it was laying off 700 workers as part of a plan to "right-size" the operation.
Major Canadian economic data includes RBC manufacturing PMI, due at 9:30 a.m. ET.
Across the pond, banks will pay back another 3.5 billion euros next week of the emergency three-year loans they took from the European Central Bank a year ago, further deflating the European Central Bank's balance sheet after they paid back a whopping 137 billion euros this week.
ON BAYSTREET
The TSX Venture Exchange docked 1.04 points Thursday to 1,220.43
ON WALLSTREET
Jobs announcement heralded February on Wall Street, and the figures looked to create a lot of excitement.
Futures for the Dow Industrials rocketed 85 points, or 0.6%, to 13,882. Futures for the S&P 500 gathered 7.9 points, or 0.5%, to 1,501.20, and futures for the NASDAQ added 17.75 points, or 0.7%, to 2,742.75
The U.S. government announced this morning that the economy added 157,000 jobs last month, up from 155,000 in December. The unemployment rate increased one-10th of one percentage point to 7.9%. Economists surveyed by Briefing.com predicted a jump of 180,000 jobs in January, and a jobless rate of 7.7%, down one-10th of a point.
Stocks have started the year strong, with the Dow gaining 5.9% in January, its the best performance for that month since 1994. Both the Dow and S&P 500 are flirting with their all-time highs reached in October 2007. The Dow is just a little more than 2% from its record high, while the S&P 500 is about 5% from its highest level.
Also on the agenda Friday, the U.S. Census Bureau will release data on December construction spending after the opening bell. The Institute for Supply Management will also publish its monthly manufacturing index, and the University of Michigan will release data on consumer sentiment.
In corporate news, Exxon Mobil reported better-than-expected earnings and revenue, sending shares higher.
Rival oil giant Chevron is also on tap to report earnings.
Merck shares declined after the company topped earnings expectations but gave a cautious outlook for 2013.
Shares of toy maker Mattel dropped after it missed earnings and sales forecast for the fourth quarter, which includes the holiday shopping period.
Dell shares climbed almost 6% in premarket trading after a Reuters report said the PC maker is nearing a deal to go private as early as Monday. The company, which is behind brands like Hot Wheels and Fisher-Price, said sales of Barbie brand products slipped 4% last quarter.
Zoetis, an animal-health company owned by drug giant Pfizer, will make its public debut Friday, listing on New York Stock Exchange under the symbol ZTS. The company raised $2.2 billion U.S. in its initial public offering, with shares pricing at $26 U.S. each, well above the target range. Zoetis' IPO is the largest since Facebook raised $16 billion U.S. last May.
European markets were higher in midday trading.
Asian markets ended mostly firmer, led by gains in Shanghai, which shrugged off the mixed news about China's manufacturing sector.
Two separate purchasing managers' surveys on China showed manufacturing activity continued to expand in January, but painted a mixed picture on the pace of recovery.
Oil prices fell 14 cents to $97.35 U.S. a barrel
Gold prices added a dollar an ounce to $1,663 U.S.
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