The Toronto stock market was slightly lower in early trading Friday as jobs reports in both Canada and the United States came in better than anticipated, although neither blew by expectations.
The S&P/TSX Composite Index slipped 60.79 points to greet noon at 12,105.87
The Canadian dollar fell 0.53 cents to 94.57 cents U.S.
Gold stocks continued to take their knocks, with Belo Sun Mining tumbling 8.9% to 41 cents. Barrick Gold suffered a loss of 5.9% to $14.41, and Kinross Gold dipped 5.2% to $4.96.
Among metal issues, Teck Resources stumbled 4% to $21.37. Rio Alto Mining slid 3.6% to $1.89.
Consumer discretionary issues were among the few groups that flourished Friday, with Cogeco Cable prospering 1.4% to $15.09.
Loblaw Companies Limited began listing its new real estate investment trust today on the TSX. Choice Properties REIT will hold 415 retail properties, one office complex and nine warehouse properties totaling 35.3 million square feet of gross leasable area.
Choice Properties was trading at $9.90, down 10 cents, while Loblaw shares were down 24 cents to $47.24.
Speaking of things economic, Statistics Canada told us that In June, employment was virtually unchanged and the unemployment rate remained at 7.1%.
In the first half of 2013, employment growth averaged 14,000 per month, slower than the average of 27,000 in the last six months of 2012.
The agency also said that over this 12-month period, employment grew by 242,000, or 1.4%, and the total number of hours worked increased by 0.6%.
Elsewhere, the Ivey Purchasing Managers Index (PMI) dipped June to 55.3 from 63.1 in May, but improved from the 49.0 figure posted in June last year.
The index delves into whether purchases last month improved on the month before. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange subtracted 5.33 points to 880.29
All but two of the 14 Toronto subgroups had faded into the red by noon, weighed mostly by gold issues, down 3.8%, metals and mining stocks down 2.2% and materials, fading 2%.
Consumer discretionaries crept up 0.2%, health-care 0.1%. So much for the groups that gained.
ON WALLSTREET
Investors welcomed signs of strength in the job market Friday, but gains in the stock market were kept in check by concerns the U.S. Federal Reserve will scale back its stimulus policies as the economy recovers.
The Dow Jones Industrials gained 98.86 points to greet noon at 15,087.40
The S&P 500 index picked up 9.66 points to 1,625.07. The tech-rich NASDAQ Composite moved ahead 22.70 points to 3,466.37
Gold prices fell, which put pressure on shares of Newmont Mining which sank 5%.
Shares of large homebuilders were under pressure as investors worry that higher mortgage rates will cool the housing market. Lennar, D.R. Horton and PulteGroup were all down more than 3%.
Meanwhile, shares of regional banks, which are expected to benefit from rising interest rates, rallied. Lincoln National, KeyCorp, SunTrust, Zions and Comerica all gained more than 3%.
The U.S. economy added 195,000 jobs in June, the U.S. Labor Department said. However, the unemployment rate held steady at 7.6%
Economists predicted the U.S. economy added 155,000 jobs, while the unemployment rate was expected to have ticked down to 7.5%.
The report suggested the Federal Reserve could begin to slow the pace of its $85-billion-U.S-per-month bond buying program in September, according to one expert who also said the gains in hiring should drive down the unemployment rate, which is what the U.S. Federal Reserve wants to see before it begins to taper.
The jobs report was good news for the economy and for the stock market, but it spooked investors in the bond market.
Investors have been selling bonds in anticipation of fewer Fed purchases.
Prices for the 10-year U.S. Treasury fell, raising yields to 2.70% from Wednesday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices added $1.78 to $103.02 U.S. a barrel.
Gold prices dropped $37.90 to $1,214 U.S. an ounce.
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