Canada’s main stock index opened higher on Friday as a better-than-expected reading on U.S. employment data for February offset an unexpectedly weak Canadian jobs report.
The S&P/TSX composite index advanced 29.81 points to open Friday at 14,301.73
The Canadian dollar dropped 0.74 cents at 90.29 cents U.S.
The Canadian government said on Thursday it would take action to address a lack of rail capacity that has led to a backlog of grain shipments, with two top ministers set to provide details on Friday. Stocks like Canadian National Railway gained 20 cents to $62.21
Canadian regulators on Thursday approved Enbridge Inc's Line 9 oil pipeline reversal and expansion, conditional on the country's largest pipeline company undertaking additional work on consultation and safety. Enbridge stock took on 28 cents to $48.82.
National Bank Financial raised the price target on Canadian Western Bank to $42 from $41, opining the company's superior loan growth outlook is adequately reflected in the shares. Canadian Western Bank shares gained 69 cents to $36.30
RBC raised the rating on Secure Energy Services to outperform from sector perform and raised target price to $21 from $20 citing the company's strong fourth-quarter results and dividend increase. Secure stock shot up 87 cents, or nearly 5%, to $18.40.
On the economic slate, Statistics Canada reported that the economy shed about 7,000 jobs in February, thus keeping the unemployment rate at 7%. There has been little overall employment growth in Canada since August 2013. However, compared with 12 months earlier, employment increased by 95,000, or 0.5%.
Moreover, the agency also said that our merchandise imports declined 1.6% while exports edged up 0.2% in January. Thus, Canada's trade deficit with the world narrowed from $922 million in December to $177 million in January.
ON BAYSTREET
The TSX Venture Exchange nicked higher 0.38 points to 1,039.74.
Nine of the 14 Toronto subgroups were higher at the outset, with information technology up 1.4%, energy better by 0.8%, and consumer discretionaries up 0.7%.
The five laggards were weighed mostly by gold, down 1.9%, global base metals, off 1.2% and materials, sliding 1.1%.
ON WALLSTREET
A better-than-expected jobs report had Wall Street in a good mood Friday morning.
The Dow Jones Industrial Average gained 35.04 points to open at 16,456.93
The S&P 500 index sank 0.23 points to 1,876.80. The NASDAQ dipped 16.72 points to 4,345.41.
Aside from the jobs report, investors are also keeping tabs on the latest earnings.
Shares of Foot Locker rose after the athletic apparel retailer reported stronger-than-expected results, including a 5.3% jump in same-store sales.
Shares of Big Lots climbed after the closeout retail chain slightly better quarterly revenue.
And shares in the supermarket chain Safeway fell following news that it will be bought by Albertsons, the supermarket chain controlled by private equity firm Cerberus.
Investors were encouraged after the government's report showed that the U.S. economy added 175,000 jobs last month, an improvement from January and ahead of economists' expectations.
Meanwhile, the unemployment rate ticked up to 6.7%, from 6.6% the prior month as more Americans joined the labour force.
The improvement also provides the Federal Reserve, which has begun scaling back, or tapering, its bond buying program by $10 billion U.S. a month, with more reasons to continue down its planned path, experts say
Prices for 10-year U.S. Treasuries sank, raising yields to 2.80% from Thursday’s 2.74%. Treasury prices and yields move in opposite directions.
Oil prices took on 72 cents to $102.28 U.S. a barrel.
Gold prices slipped $18.50 to $1,333.30 U.S. an ounce.
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