Canadian stocks triumphed yet again, entering a bull market, as a rally by gold producers offset declines in the nation’s largest lenders after the U.S. added fewer jobs than forecast
The S&P/TSX Composite Index hiked 89.79 points to end the day and the week at 14,226.78. The TSX is up over 20% from its Jan. 20 low, fulfilling the definition of a bull market. The index also secured its fourth weekly rally, the longest stretch since November 2014.
The Canadian dollar leaped 0.92 cents to 77.28 cents U.S.
Among gold and material issues, Barrick Gold climbed $2.58, or 11.6%, to $24.81, and Kinross Gold jumped 76 cents, to 13.4% to $6.45, after the U.S. jobs data. Weakness in the dollar makes gold more attractive as a store of value
The nation’s largest lenders lost ground as Manulife Financial, the nation’s largest insurer, dropped 38 cents, or 2%, to $19.04
Base metals stocks also had a banner day, as First Quantum Minerals moved skyward 55 cents, or 6.4%, to $9.15, while Teck Resources ascended 94 cents, or 7.3%, to $13.85.
Health-care stocks dwindled as Valeant Pharmaceuticals International lost $1.13, or 2.9%, to $37.42, for a second straight decline after the drug maker received a notice of default from some bondholders due to the delay in filing its quarterly financial results with regulators. Valeant reiterated it expects to file on or before June 10.
On the economic beat, Statistics Canada reported this morning that our exports increased 1.5% to $41.8 billion in April. Export prices were up 1.1% and volumes rose 0.5%. Imports increased 0.9% to $44.7 billion, as volumes were up 0.8% and prices edged up 0.1%.
As a result, Canada's merchandise trade deficit with the world narrowed from $3.2 billion in March to $2.9 billion in April.
ON BAYSTREET
The TSX Venture Exchange triumphed 15.38 points, or 2.3%, to 693.71
Eight of the 13 TSX subgroups had gained ground by the closing bell, most notably gold, shining 9.4% brighter, materials, better by 6.4%, and the metals and mining sector, climbing 5.6%.
The five laggards were weighed mostly by health-care, sagging 2%, information technology, down 0.8%, and consumer discretionaries, off 0.7%.
ON WALLSTREET
U.S. stocks closed slightly lower Friday, as gains in utilities offset declines in financials after a sharp miss on the May jobs report.
The Dow Jones Industrials remained negative, but within 31.5 points of breakeven, to end the day and a short week at 17,807.06, after losing 148 points in morning trade, with Goldman Sachs leading decliners and Caterpillar the top advancer.
The S&P 500 faded 4.63 points at 2,100.63, with financials leading six sectors lower and utilities the top advancer.
The NASDAQ lost 28.85 points to 4,942.52.
The week was shortened by the Memorial Day holiday Monday.
The May jobs report showed creation of 38,000 jobs down south, well below expectations. Analysts noted the Verizon workers' strike likely made the number lower than it would have been.
Experts said Fed funds futures showed markets were pricing in an 8% chance of a June rate hike, and 33% in July, according to RBS.
Chances for a September hike were 54%, and 90% in December, with the first full rate hike now factored in for March 2017.
The final Markit services PMI was 51.3 in May, down from 52.8 in April and well below the post-crisis average of 55.6
The Institute for Supply Management non-manufacturing came in at 52.9 for May, well below April's 55.7 print. The employment component fell to 49.7 from 53.0 in April.
Factory orders rose 1.9% in May.
Prices for the 10-year Treasury gained sharply, lowering yields to 1.7% from Thursday’s 1.8%. Treasury prices and yields move in opposite directions.
Oil prices retreated 40 cents a barrel to $48.77 U.S.
Gold prices jumped $33.09 to $1,244.09 U.S. an ounce.
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