Markets resumed their upward momentum leading up to noon Friday, turning a deaf ear to negative job numbers.
The S&P TSX Composite Index was ahead 155.54 points to 9.016.52 by midday, after Statistics Canada said Canada lost a record 129,000 jobs last month.
That was far more than the consensus expectation of 40,000, and the unemployment rate surged more than half a point to 7.2%. The drop in jobs exceeded any contraction during previous recessions in the early 1980s and 1990s.
On the TSX, the base metals sector racked up solid gains for a second day, as the March copper contract in New York rose eight cents to $1.58 U.S. a pound. Teck Cominco Ltd. rose 36 cents to $5.36 and First Quantum Minerals climbed $1.64 to $30.04.
The energy sector was flat, with Suncor Inc. 24 cents higher to $24.90.
The Ontario Teachers' Pension Plan has confirmed talks with Petro-Canada about creating more value for shareholders. Petro-Canada shares added seven cents to $29.40.
The TSX financial sector gained 0.7% ahead of an announcement from U.S. Treasury Secretary Timothy Geithner on how the government will employ the second half of a $700-billion U.S. bank bailout package as well as other help for financial players. Royal Bank advanced 25 cents to $31.49.
TD Bank Financial Group confirmed it is raising its ownership of U.S. brokerage TD Ameritrade to 45% from 39.9%. The cost is $515 million, 50% above the current market value, under a previously negotiated hedging arrangement. TD shares were up 23 cents to $39.40.
The Toronto gold sector was up 1.7%. Barrick Gold Corp. improved 91 cents to $48.56.
The TSX was supported by two of its largest companies. Research In Motion Ltd. was up $3.67 to $73.61 while Potash Corp. rose $7.61 to $113.71.
Shares in Canwest Global Communications Corp. were up five cents to 47 cents after it said it is exploring the sale or closure of five small-city TV stations. Analysts say it's unlikely the company will find a buyer in the current recession.
Nortel Networks Corp. is seeking a three-month extension to deal with its restructuring under bankruptcy protection from creditors. Its shares were off half a cent at 10.5 cents.
Fraser Papers Inc. jumped 11.5 cents or 35% to 44.5 cents after it reported a loss of $15.9 million or 32 cents per share in the fourth quarter.
The Canadian dollar slumped 0.45 cents to $80.72 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, 11 started out positive, led by metals and mining, which leapt 7.6%, information technology, 2.9% to the upside, and industrials, ahead 2.5%.
Two groups were negative. Consumer staples were down 0.6% and health-care stocks were off 0.5%
The TSX Venture Exchange was up 8.14 points to 906.36, while the NASDAQ Canada index surged 23.09, at 578.89
ON WALLSTREET
The Dow Jones industrials index remained in high gear, gaining 184.38 points to 8,247.45 The Standard & Poor’s 500 index improved by 16.71 points to 857.56. The NASDAQ composite index picked up 33.34 points to 1,579.58.
Economically speaking, the U.S. Labor Department reported the American economy lost 598,000 jobs during January, worse than the 524,000 economists expected. The U.S. jobless rate rose to 7.6% from 7.2%.
Treasury prices slumped, raising the yield on the benchmark 10-year note to 2.97% from 2.89% Thursday.
March crude contract on the New York Mercantile Exchange down $1.58 to $39.59 U.S. a barrel.
The April bullion contract on the Nymex rose $1.20 to $915.40 U.S. an ounce.
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