The Toronto stock market was slightly higher mid-morning as U.S. unemployment data managed to disappoint observers, and the latest Canadian bank earnings were mixed.
The S&P TSX Composite Index approached noon flat, up only 1.03 points to 13,164.56
The loonie gave back 0.23 cents to 99.49 cents U.S.
Shares in Barrick Gold Corp. gained $1.64 cents to $55.24 while shares in diversified miner Teck Resources added 71 cents to $54.73.
In the energy sector, shares of Canadian Natural Resources added 12 cents to $41.88.
On the TSX, the financial sector was down on mixed earnings from Scotiabank and Royal Bank. On Thursday, disappointing earnings came in from TD Bank and CIBC
Scotiabank said its fourth-quarter profit was up 21% from the same time last year, rising to just under $1.1 billion, and beating analyst estimates. Scotiabank shares were up 87 cents $54.84.
Royal Bank said its fourth-quarter profits slipped nine per cent to $1.12 billion or 74 cents per share, down from $1.24 billion, or 82 cents a share, in the same quarter last year. Cash earnings per share were 84 cents, which was below analyst expectations of $1 per share. Shares in Canada’s biggest bank fell 5% or $2.72 at $53.
Meanwhile, Western Coal Corp. was the TSX’s most active issue early Friday after it announced it has agreed to be taken over in a deal that values the Vancouver-based company at $3.3 billion.
Walter Energy Corp. of Tampa, Fla., which recently became Western Coal’s largest shareholder, is offering to buy the remaining stock for $11.50 per share in cash or shares.
Its shares jumped 11%, or $1.09, at $11.39 with over 26 million changing hands by mid-morning
Economically speaking, Canada’s unemployment rate dropped to its lowest rate in almost two years last month, despite the economy creating only 15,200 new part-time jobs.
Statistics Canada reported Friday that the country’s jobless rate dropped three-10ths of a point to 7.6% in November, the lowest reported rate since January 2009.
But, the agency notes, that dip is almost entirely due to 43,600 people, mostly youth, leaving the labour market.
ON BAYSTREET
The TSX/Venture Exchange advanced 9.05 points to 2,104.79, while the Nasdaq Canada index gained 0.98 points to 769.68
In Toronto, eight of the 14 subgroups were negative. Financials and telecoms had shed 1.1% each, while industrials slid 0.7%.
The half-dozen gainers were led by gold, up 2.6%, materials were 2%, with the metals and mining group up 1.8%.
ON WALLSTREET
In New York, stocks retreated Friday, after a government report showed that U.S. job growth in November was much slower than expected.
Declines were fairly modest, as investors moved beyond the numbers to focus on what favorable policy decisions might be triggered by the disappointing data.
The Dow Jones Industrials reversed 31.82 points midday to 11,330.60
The S&P 500 settled 3.73 points to 1,217.80. The Nasdaq Composite Index eked ahead 0.34 points to 2,579.69.
Investors have been buying up stocks and other risky assets this week, following a batch of mostly positive economic indicators.
It's been a good week for stocks, with all three major indexes on track to end about 2% higher.
Shares of Ford were slightly lower in early trading, after the automaker reported a 20% increase in November sales on Thursday.
On the economic side, the U.S. economy added 39,000 jobs in November, the lowest number since September, the U.S. Labor Department said.
The total fell far short of expectations. A panel of economists had forecast a gain in payrolls of 150,000 jobs, with some even going as high as 200,000.
The unemployment rate rose to 9.8% after holding at 9.6% for several months.
Meantime, a separate government report is expected to show that factory orders fell 1.3% in October, after a 2.1% gain in September.
The Institute for Supply Management's November index on manufacturing activity is forecast to edge up to 54.5, from 54.3.
The price on the benchmark 10-year U.S. Treasury gained by noon Friday, dropping the yield to 2.97% from Thursday’s 3%. Treasury prices and yields move in opposite directions.
Oil picked up another $1.72 a barrel to $88.47 U.S. Gold futures for February delivery rose $18.30, or 1.3%, to $1,407.60 U.S. an ounce.
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