A jump in energy stocks helped Canada's main stock index hit an all-time high on Friday, with the index shrugging off data showing the economy added far fewer jobs than expected in July.
The TSX Composite index climbed 87.88 points to break for lunch Friday at 20,463.36.
The Canadian dollar fell 0.43 cents to 79.56 cents U.S.
Gildan Activewear rose $1.48, or 3.4%, to $45.65, after posting a surge in second-quarter sales and reinstating its share re-purchase programme.
Ritchie Bros Auctioneers fell $2.58, or 3.5%, to $71.92, as it posted a
lower-than-expected quarterly revenue. Badger Infrastructure Solutions tumbled $1.65, or 4.7%, to $33.25.
On the economic slate, Statistics Canada reported the economy created 94,000 jobs during July, adding to an increase of 231,000 in June, July’s unemployment rate falling to 7.4% from 7.8%.
Western University’s IVEY School says its Purchasing Managers Index registered at 56.4 in July, down considerable from June's 71.9, and far off the 68.5 reading in July 2020.
ON BAYSTREET
The TSX Venture Exchange fell back 1.62 points to 920.99.
All but two of the 12 TSX subgroups were higher midday Friday, as health-care stocks climbed 1.1%, energy improved 0.8%, and real-estate strengthened 0.7%.
The two laggards were, off 2.2%, and materials, retreating 0.3%.
ON WALLSTREET
Stocks tied to the economic recovery stateside rose after a stronger-than-expected U.S. jobs report on Friday, sending two key market averages to all-time highs.
The Dow Jones Industrials spiked 138.83 points to 35,203.08 and hit an intraday record high.
The S&P 500 jumped 6.31 points to 4,435.33, for its own intraday all-time high,
The NASDAQ lost 69.45 points to 14,824.42.
Friday’s jobs report showed that the U.S. economy added 943,000 jobs in July, according to the Labor Department. Economists expected the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. The unemployment rate dropped to 5.4%, below the estimate of 5.7%.
Bank shares led the gains post-jobs report as rates shot higher, increasing their profitability prospects. Shares of JPMorgan rose more than 2%, while Bank of America and Wells Fargo climbed more than 3%. Industrials, retailers and energy stocks also gained as the jobs report soothed concerns about the economic comeback.
On the flip side, tech shares declined as the jump in rates caused investors to take profits in the names and move back into stocks that could benefit more from faster economic growth. Amazon and Apple dipped slightly, while Zoom Video fell more than 3%. Higher rates can expose tech stock lofty valuations.
Defensive stocks, such as utilities and health care companies, also slumped after the report.
Prices for 10-Year Treasurys fell hard, raising yields to 1.30% from Thursday’s 1.22%. Treasury prices and yields move in opposite directions.
Oil prices dropped 67 cents to $68.42 U.S. a barrel.
Gold prices slid $46.30 to $1,762.60 U.S. an ounce.
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