Canadian markets looked set to open higher on Friday after data showed U.S. employers stepped up hiring in May, a sign the economy was growing modestly but not strong enough to convince the Federal Reserve to scale back the amount of cash it is pumping into the banking system.
The S&P/TSX Composite Index faded 34.32 points, to end Thursday at 12,409.33, but futures were up marginally.
The Canadian dollar took on 0.25 cents to 97.68 cents U.S. early Friday.
Canaccord Genuity cut the price target on Canadian Western Bank to $30.75 from $31.50, continuing to believe that lower revenue growth will contribute to negative operating leverage of 1.6% this year
Canaccord Genuity also raised the target on COM DEV International Inc. to $4.75 from $4.35, as the agency remains positive given the commercial and civil market strength and margin expansion post execution issues
CIBC upped the target on Constellation Software to $150 from $127, saying it continues to like the company's strategy, but believes that much of the upside is already priced into the stock
Speaking of things economic, Statistics Canada reported that employment rose by 95,000 in May, with most of the increase in full-time work. This employment gain pushed the unemployment rate down 0.1 percentage points to 7.1%.
ON BAYSTREET
The TSX Venture Exchange gained 3.99 points to close Thursday at 951.43
ON WALLSTREET
U.S. stock investors spent early Friday morning digesting the latest U.S. government's monthly jobs report.
Futures for the Dow Industrials poked ahead two points to 15,038. Futures for the S&P 500 notched a gain of only 1.6 points, or 0.1%, to 1,624.30, and futures for the NASDAQ dipped 1.75 points to 2,947.75
On the economic front, the U.S. Labor Department reported that that country’s economy added 175,000 jobs in May, but the unemployment rate moved up one-10th of a point to 7.6%.
Analysts surveyed by Briefing.com predicted that the economy added 158,000 jobs in May, with the unemployment rate holding steady at 7.5%.
Analysts say Friday's report could be particularly important given the questions about how long the Federal Reserve will continue its bond-buying program as the economy recovers.
At 3 p.m. ET, the Federal Reserve will publish its monthly report on consumer credit.
European markets were lower in midday trading. All eyes were on the U.S. job numbers.
Asian markets ended the day with losses. Japan's Nikkei 225 index retreated again, at one stage entering bear market territory by extending losses since its May 23 peak to more than 20%. It recovered slightly later in the session to end 0.2% down for the day.
The major indexes in Hong Kong and mainland China fell by just over 1%
Oil prices moved 42 cents higher to $95.18 U.S. a barrel
Gold prices slid $7.30 to $1,408.30 U.S.
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