Canada's main stock index closed higher Thursday as investors flocked to industrial and tech stocks while data showed U.S. jobs growth slowed in June, tempering expectations of a rate hike by the Federal Reserve in September.
The S&P/TSX composite index was up 84.66 points at 14,637.99.
U.S. nonfarm payrolls rose 223,000 in June, the Labor Department said on Thursday. With 432,000 people dropping out of the labor force, U.S. unemployment rate fell two-tenths of a percentage point to 5.3 percent, the lowest since April 2008.
In Canada -- The RBC Canadian Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 51.3 last month from 49.8 in May.
On the corporate front -- Great-West Lifeco Inc. on Thursday said its European subsidiary, Canada Life Group, has completed the acquisition of Legal & General International (Ireland) Ltd. Terms of the transaction were not disclosed.
Loblaw has agreed to recommence negotiations with UFCW locals 175 & 633 and 1000A relating to labour contracts.
Sears Canada announced that Ronald D. Boire will be leaving his position as President and CEO of the company at the end of the summer.
The loonie was trading at 79.70 cents US, up 0.35 of a U.S. cent.
ON BAYSTREET
The TSX Venture Exchange was up 0.09 points to 671.58.
Nine of the 14 TSX subgroups were higher -- Industrials were ahead 1.38 percent, tech stocks were up 1.34% and health-care improved 1.26%.
On the downside -- metals and mining stocks were down 1.03, energy issues dipped 0.18% and gold shed 0.13%.
Gold futures for August delivery fell 0.14 percent to $1,167.11 an ounce.
ON WALLSTREET
U.S. stocks ended a volatile holiday-shortened week with losses, as investors grappled with heightened uncertainty tied to Greece ahead of a Sunday referendum to vote on the country’s status as a eurozone member. Financial markets will be closed on Friday to observe U.S.’s Independence Day.
Greece and its lenders failed to reach an agreement over bailout funds, resulting in a missed payment to the IMF on Tuesday.
The S&P 500 ended one point lower at 2,076.27 and recorded a 1.2% loss over the week, its second weekly loss in a row. The Dow Jones Industrial Average slipped 27.80 points, or 0.2%, to 17,730.11 and fell 1.2% over the week. The Nasdaq Composite closed 3.91 points, or 0.1% lower at 5,009.21 and booked a 1.4% loss over the week.
Government data for June showed the economy added 223,000 new jobs, in line with forecasts by economists polled by MarketWatch. However, May and April numbers were reduced. The unemployment rated ticked down to 5.3%, but mostly due to more people leaving the labor force. Separately, weekly jobless claims climbed 10,000 to 281,000.
Analysts noted that the report was solid enough for the Federal Reserve to raise interest rates in September, yet a lack of wage growth could give policy makers an excuse to wait until December.
On the corporate front -- Health Net shares jumped 10% after Centene has agreed to buy the company in a cash-and-stock deal worth $6.8 billion. Centene shares dropped 3.6%.
Tesla Motors Inc. climbed 4% as the company said second-quarter deliveries of its 11,507 Model S vehicles jumped 52% from the year-earlier period.
Xoom Corp. surged 21% after the digital payments company received a buyout bid from PayPal Inc. on Wednesday.
Progress Software Corp. climbed 6% after the business-software company raised its outlook for the year following better-than-expected earnings.
Treasurys rallied, sending the yield on the 10-year note down 4 basis point to 2.38%.
Oil futures settled marginally lower at $56.93 and booked a 4.5% drop over the week.
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