Stocks on Bay St traded higher on Friday as investors took in a surprise jump in the number of jobs created last month while mining stocks took a hit as price of gold fell; failing to reach the psychological $1000 level.
The S&P TSX Composite index gained 95.98 points at 11,017.47.
The Canadian economy added 27,100 jobs during August, much better than the loss of 22,000 jobs that economists had expected. The unemployment rate edged up a tenth of a point to 8.7 percent, below expectations of a rise to 8.8 percent, as more people entered the workforce.
On the downside, all of the Canadian job gains were in services and part-time positions, as full-time jobs fell by 3,500.
Down south -- the U.S. Labour Department reported that the economy lost 216,000 jobs last month against estimates of around 225,000 while the unemployment rate ticked two tenths of a point higher to 9.7 percent -- the highest rate since June 1983.
The Institute for Supply Management, a trade group, said Tuesday that the manufacturing sector grew in August for the first time in 19 months. On Thursday, the ISM said its service sector index rose to 48.4 last month, the highest level in nearly a year. Home sales, meanwhile, have increased for several months and prices are stabilizing.
In corporate news -- Suncor Energy Inc. shares were 95 cents higher to $34.00 after it said Thursday it expects to shed 1,000 workers as a result of last month's union with Petro-Canada. All staff affected by the move are expected to be gone by mid-October through a combination of layoffs, retirements and terminated contract positions.
Shares in Petro Andina Resources Inc. spiked nearly 11 percent a day after it announced it had inked a friendly takeover deal with Dutch firm Pluspetrol Resources Corp. N.V. in a deal worth about $500 million.
The Canadian dollar, meanwhile traded at 92.09 cents US, up 0.14 of a cent.
ON BAYSTREET
Twelve sub-groups were in the green today. Telecom led the gainers, leaping 1.63 percent, followed by energy issues, up 1.53 percent and real-estate stocks, which were ahead 1.51 percent.
On the downside -- gold stocks were off 1.18 percent and material issues fell 0.53 percent.
The TSX Venture Exchange was off 13.74 points to 1,229.25, while the Nasdaq index picked up 16.83 points to 768.88.
ON WALLSTREET
U.S. stocks on Friday finished with daily gains and weekly losses, after a mixed jobs report for August spurred thinking the economy is improving.
The Dow Jones industrial average gained 96 points, or 1 percent, according to early tallies. The S&P 500 index added 13 points, or 1.3 percent. The Nasdaq composite advanced 35 points, or 1.8 percent.
However, all three indexes ended the week lower.
Select financial shares rose, including Bank of America, Citigroup, US Bancorp and Regions Financial. The KBW Bank index added 0.9 percent.
A number of truckers, airlines and railroad shares rose, now that oil prices have come down off 10-month highs set last week. Fuel prices are directly linked to the profitability of transportation companies. The Dow Jones Transportation average gained 1.7 percent.
Apple shares rose ahead of its media event next week where it is expected to introduce iPod Nano and Touch models that include digital cameras. Investors are also wondering if CEO Steve Jobs, now back at work after a six-month medical leave, will make an appearance. Apple shares have nearly doubled this year.
U.S. light crude oil for October delivery rose 6 cents to settle at $68.02 US a barrel on the New York Mercantile Exchange. Oil prices have been slipping since hitting a 10-month high just below $75 a barrel late last month.
COMEX gold for December delivery fell $1 to settle at $996.70 US an ounce, after inching closer to the psychologically significant $1,000 level over the last few sessions.
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