North American stock markets were well into negative territory Friday afternoon as a stronger-than-expected reading on U.S. job creation sparked another round of concern about how the data would affect the Federal Reserve’s timetable for raising interest rates.
The S&P/TSX composite index plummeted 150.61 points, or 1%, to close Friday at 14,952.50. On the week, the loss amounted to 281 points, or 1.9%.
The Canadian dollar slumped 0.79 cents to 79.29 cents U.S.
All sectors were negative on the day, the gold sector the major decliner, as Agnico Eagle Mines took a drop of $2.95, or 7.5%, to $36.22, and Barrick Gold collapsed 87 cents, or 5.7%, to $14.36.
The base metals component shed much of its strength as May copper was four cents lighter at $2.61 U.S. a pound. Sheritt International let go of five cents to $2.25, while Teck Resources lopped off 67 cents, or 3.5%, to $18.12.
The energy sector was down as Imperial Oil gave back 52 cents, or 1.1%, to $46.90, while Canadian Natural Resources dipped $1.20, or 3.1%, to $37.44.
Also ailing was the real-estate sector, weighed by Dream Unlimited Corporation, down 58 cents, or 5.8%, to $9.41.
On the corporate front, Ottawa has raised $2.11 billion in its latest auction of wireless spectrum. Telus was the biggest buyer, paying over $1.5 billion for 15 licences. Its shares were down 38 cents at $43.42.
On the economic calendar, Statistics Canada reported that our imports were flat in January, while our exports plunged 2.8%.
As a result, Canada’s trade balance with the rest of the world, widened from $1.2 billion in December to $2.5 billion in January, the largest since the record $2.9-billion deficit in July 2012.
Moreover, the agency said that building permits fell in January to $6.1 billion, following a 6.1% increase the previous month. StatsCan chalked this up to lower construction intentions for non-residential buildings in Alberta, British Columbia and Ontario.
ON BAYSTREET
The TSX Venture Exchange skidded 8.13 points to 688.79
All 14 Toronto subgroups were down, gold sliding 6.3%, materials down 3.4%, and eal-estate suffering 2.1%.
ON WALLSTREET
U.S. stocks closed down more than 1% on Friday as investors weighed a jobs report that indicated an interest rate hike could come sooner rather than later.
The Dow Jones Industrials dwindled 278.94 points, or 1.5%, at 17,856.78, with Johnson & Johnson and Procter and Gamble the greatest decliners. On the week, the loss was 275.92 points, or 1.5%.
The S&P 500 dipped 29.78 points, or 1.4%, to 2,071.26.
The NASDAQ index faltered 55.44 points, or 1.1%, to 4,927.37
Apple is expected to join the Dow on March 18, replacing AT&T. Shares of the iPhone maker held higher but below records, while the wireless services provider fell more than 1%.
In corporate news, Staples reported a 3.7% fall in quarterly sales, as a strong dollar and waning demand for computers and accessories hurt profits.
The office supply retailer posted a net loss attributable to the company of $260.4 million U.S., including a pre-tax charge of $410 million U.S. as a result of impairment of goodwill in its international operations.
In the economic docket, the U.S. trade balance data for January showed $41.75 billion U.S., a decrease from December's $45.60 billion U.S.
The jobs report showed a gain of 295,000, above expectations of 240,000 in February, down from 257,000 in January. The
unemployment rate fell to 5.5%, while hourly wages ticked up 0.1%, below consensus and off the surprise 0.5% gain in January.
Prices for 10-year U.S. Treasuries fell sharply, raising yields to 2.24% from Thursday’s 2.11%. Treasury prices and yields tend to move in opposite directions.
Oil prices sank $1.17 to $49.56 U.S.
Gold prices were bruised $30.10 to $1,166.10 U.S.
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