North American stock markets were lower Friday as the U.S. government reported flat monthly net job growth in August, the first time that has happened since early 1945.
The S&P/TSX Composite Index was down 44.77 points by noon to 12,655.97
The Canadian dollar stepped back 0.50 of a cent to 101.90 cents U.S.
In the energy sector, Canadian Natural Resources fell 91 cents to $35.35 and Suncor Energy declined 77 cents to $30.23.
The base metals sector lost ground as copper prices moved lower with the December contract off six cents at $4.10 U.S. a pound.
Teck Resources fell $1.34 to $41.59 and Lundin Mining was down 27 cents at $5.25.
The gold sector ran ahead with Barrick Gold Corp. up $2.16 to $52.58 and Goldcorp Inc. gaining $1.84 to $53.97.
The TSX was also off early lows as losses in the financial sector moderated. Scotiabank lost 37 cents to $53.81 and Manulife Financial was down 15 cents at $13.
Laurentian Bank shares added 59 cents to $44.19 as it reported net earnings increased 17% to $35.3 million in the third quarter and that it had entered into two transactions with Mackenzie Financial, including the $165-million acquisition of MRS companies.
ON BAYSTREET
The TSX Venture Exchange fell 1.55 points to 1,810.92, while the Nasdaq Canada index dropped 11.57 points to 524.58
In Toronto, all but three of the 14 subgroups were lower at midday, weighed mostly by metals and mining, falling 3.7%, global base metals, dipping 2.3%, and information technology, subtracting 2%.
The three gainers were gold, up 3.3%, materials, ahead 1.6%, and telecoms, eking up 0.1%.
ON WALLSTREET
In New York, stocks tumbled early Friday after the government reported no job growth in August, stoking fears that the United States may be headed into another recession.
The Dow Jones Industrials approached noon down 165.14 points, or 1.4%, to 11,328.40, with financial stocks leading the selloff. Bank of America fell 6%, and JPMorgan Chase shed almost 4%.
The S&P 500 settled 20.38 points to 1,184.04, while the Nasdaq tumbled 40.75 to 2,505.29. Only a handful of S&P 500 stocks showed slight gains, including Newmont Mining, Clorox and Cephalon
H&R Block plunged 12.5%, making it the worst performer on the S&P 500, after the tax preparation company reported disappointing quarterly results after Thursday's closing bell.
Netflix shares sank almost 9%, after Starz said late Thursday that it has ended contract renewal negotiations. Starz will pull its movies and TV shows from Netflix early next year. Netflix was among the worst-performing stocks on the S&P 500 and Nasdaq.
Financial stocks were also under intense pressure following news reports, citing unnamed sources, that said the Federal Housing Authority was gearing up to file lawsuits against Bank of America, JPMorgan Chase, Goldman Sachs, among others.
On Thursday, the Federal Reserve sanctioned Goldman over questionable practices in one of its mortgage units. Shares of bank fell almost 5%.
Liz Claiborne's stock jumped almost 10% after the cash-strapped apparel company said it agreed to sell its Mexx fashion brand to a joint venture with a private equity firm. The deal is expected to help Liz Claiborne trim down its debt.
Economically speaking, the U.S. Labor Department said employers didn't add or eliminate jobs last month. That was the weakest reading since September 2010, when the economy lost 27,000 jobs. The last time the headline employment number was zero was in February 1945.
A survey of economists forecast that the U.S. economy added 75,000 jobs overall. The unemployment rate remained unchanged at 9.1%, as expected.
Weakness in the labour market was expected for August -- a month that started with Congress squabbling about the debt ceiling, Standard & Poor's downgrading the United States credit rating and the stock market swinging wildly.
Investors will also tune into President Obama's economic address to a joint session of Congress on Sept. 8, which is expected to focus on his long-awaited jobs proposal.
The price on the benchmark 10-year U.S. Treasury note rose sharply, lowering the yield to 2.04% from Thursday’s 2.15%. Prices and yields move in opposite directions.
Oil for October delivery regressed $1.69 to $87.24 U.S. a barrel.
Gold prices jumped $52 to $1,881 U.S. an ounce.
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