Stocks in Toronto opened lower on Friday, with energy shares weighing as oil prices slid further, setting the index up for a 0.6% slip on the week.
The S&P/TSX composite index was off 9.84 points to open Friday at 14,396.27.
The Canadian dollar lost 0.24 cents to 76.04 cents U.S.
Magna International Inc reported an 8.7% drop in quarterly sales, due to the impact of a strong U.S. dollar. Net income attributable to Magna fell to $483 million in the second quarter ended June 30 from $510 million a year earlier. However, earnings per share were $1.16, same as last year.
Magna shares inched up nine cents to $71.51.
Telus posted a 10.5% fall in quarterly profit, mainly due to an increase in costs and charges related to adjustments from higher corporate tax rates in Alberta. The company's net income fell to $341 million, or 56 cents per share, in the quarter ended June 30, from $381 million, or 62 cents, a year earlier. The Vancouver-based company's operating revenue rose 5.1% to $3.10 billion. Its shares acquired 16 cents per share to $44.97.
German salt and fertilizer company K+S AG said Potash Corporation again sent an unsolicited letter to its management and supervisory boards. The letter includes a proposal for a "business combination agreement" based on an unchanged price of 41 euros per share.
Potash shares docked four cents to $35.32.
CIBC cut the price target on Pengrowth Energy to $3.50 from $4.00 based on the fine-tuning of our Risked NAV including an adjustment to our production mix and the PV impact of slowed long-term production growth.
Pengrowth shares collapsed 19 cents, or 9.8%, to $1.75.
CIBC raised the price target on Whistler Blackcomb Holdings to $24.00 from $22.00 based on continued strength in destination visits and a rebound in regional visits, which should drive top line growth easily into the double-digit range.
Whistler shares were unchanged at $20.70.
On the economic scene, Statistics Canada reported that only 6,600 jobs were created during July, keeping the unemployment rate at 6.8% for the sixth straight month.
The agency also reported that the total value of building permits rose 14.8% to $7.7 billion in June, following a 13.9% decrease in May.
June’s hike was mainly attributable to higher construction intentions for multi-family dwellings in Quebec, Alberta and Ontario, as well as institutional buildings in Alberta and commercial buildings in British Columbia.
Finally, Western University in London, Ontario released its IVEY Purchasing Managers Index for July. Last month, the figure stood at 52.9, compared to 55.9 in June, and 54.1 for July 2014.
The index compares purchasing managers’ buys with previous months. Any figure over 50 indicates expansion, below 50 indicates contraction.
ON BAYSTREET
The TSX Venture was negative by 1.20 points to 579.83.
The 14 TSX subgroups were divided equally between gainers and losers, with gold brighter by 1.9%, materials 1.2% stronger, and consumer discretionary issues up 0.5%.
The seven laggards were weighed most by health-care, off 1%, information technology, sliding 0.6%, and consumer staples, down 0.5%.
ON WALLSTREET
U.S. stocks traded mildly lower on Friday as investors digested the July employment report that supported the case for a rate hike as early as September.
The Dow Jones industrial average lost 90.38 points to 17,329.37, with Intel leading decliners and Walt Disney the greatest advancer.
The S&P 500 subtracted 3.94 points to 2,079.62. Health care fell more than 1% as the greatest decliner in the S&P 500.
The NASDAQ index lost 8.58 points to 5,047.86
In morning earnings reports, Cablevision reported a 1.6% increase in quarterly revenue, boosted by an increase in fees to its cable customers. Net income attributable to stockholders fell to 27 cents from 35 cents U.S. a year earlier, while net revenue rose to $1.65 billion from $1.63 billion U.S.
Hershey reported its weakest sales performance in more than five years, hurt by low demand in China. The chocolate maker posted a net loss of 47 cents U.S. a share for the second quarter, versus a gain of 75 cents U.S. from the same period last year. Net sales were flat at $1.58 billion U.S.
The report said that 215,000 jobs were added in July, with an unemployment rate of 5.3%. Average hourly earnings rose 0.2%, as expected.
Economists polled by Reuters forecast an increase of 223,000 non-farm payrolls in July, enough to allow the U.S. Federal Reserve to pull the trigger on its first rate hike in nine years.
The Fed will consider a possible first rate hike in nine years at its September 16 and 17 meeting.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.20% from Thursday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices slumped 57 cents a barrel to $44.09 U.S.
Gold prices added $3.70 to $1,093.80 U.S. an ounce.
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