The Toronto stock market was sharply lower Friday as weak U.S. jobs data added to worries that the global economy is slowing faster than previously thought.
The S&P/TSX Composite Index plummeted 157.38 points, or 1.3%, to close out a short week at 11,659.65. Markets were off Monday for Canada Day.
The Canadian dollar slipped 0.40 cents at 98.18 cents U.S.
It was the second negative day this week for the Toronto market, which declined nearly 100 points on Thursday. The two-day decline has erased much of the gains earlier in the week, including a 252-point gain on Tuesday.
On the TSX, the energy sector fell as crude prices fell sharply despite interest rate cuts announced Thursday by the European and Chinese central banks.
Suncor Energy gave back 98 cents, or 3.2%, to $29.42 and Canadian Natural Resources was down 93 cents, or 3.4%, at $26.61.
The base metals sector fell as diminished demand prospects also pushed metal prices lower with the September copper contract on the Nymex off seven cents to $3.43 U.S. a pound. Teck Resources lost $1.00, or 3%, to $31.96 and First Quantum Minerals was 82 cents lower, or 4.2%, at $18.70.
The gold sector dropped as Kinross Gold Corp. faded 37 cents, or 4.2% to $8.44 and Goldcorp Inc. was off 82 cents, or 2.1%, to $38.48.
The financials sector declined while Scotiabank was down 99 cents, or 1.8%, to $52.89 while Manulife Financial dropped 34 cents, or 3%, to $10.90.
Industrial stocks also weakened with Bombardier 16 cents, or 3.8%, lower at $4.04.
In corporate news, Pengrowth Energy Corp. is reducing its monthly dividend payments to shareholders by 43% to four cents a share starting next month. The Calgary-based company says it’s making the change due to weak commodity prices and increased uncertainty in the capital and property markets and its shares fell 21 cents, or 3.2%, to $6.40, off its lows of the day.
Canadian Pacific Railway says Tony Ingram has resigned as a director, the third departure from the CP board since the Calgary-based company’s annual meeting in May.
As a result of the departures and the addition of Hunter Harrison as a director and chief executive officer of the company, the nominees put forward by Pershing Square have a majority on the 14-member board of directors. CP stock declined 73 cents to $75.03.
Network technology company Sandvine Corp. had a loss of $4.2 million U.S. or three cents a share in its second quarter.
But the bad news was tempered by more than $2 million in orders from one of the top 10 telecom providers in the United States, but it didn’t identify the customer.
Sandvine had $18.6 million U.S. in revenue for the three-month period and its shares added two cents, or 1.5%, to $1.36.
Economically speaking, figures released by Statistics Canada showed that in June, employment was little changed for the second consecutive month and the unemployment rate edged down 0.1 percentage points to 7.2%, as fewer people searched for work.
Compared to June 2011, employment increased 1.0% or 181,000. At the same time, full-time work was up 222,000, up 1.6%, while part-time work was little changed.
Elsewhere, the agency said that building permits were up 7.4% to $7.0 billion in May, a five-year high.
ON BAYSTREET
The TSX Venture Exchange subsided 15.10 points to 1,206.89. The Nasdaq Canada index fell 2.43 points to 356.89.
All but one of 14 Toronto subgroups remained negative, weighed by metals and mining, off 3.7%, while global base metals and gold each lost 2.2% of their strength.
Only a slight 0.1% gain by utilities kept the board from being shut out.
ON WALLSTREET
A weaker-than-expected jobs report dominated investors' attention Friday, pushing all three major U.S. stock indexes down more than 1%.
The Dow Jones Industrials fell 124.20 points, off its lows of the day, to close out a short week at 12,772.50
The S&P 500 shrank 12.90 points to 1,354.64. The Nasdaq Composite Index tumbled 38.79 points to 2,926.92. Markets were closed for Independence Day on Wednesday.
Worries over the health of the global economy also caused investors to flee commodities. Oil prices dropped more than 3%. Copper prices dropped more than 2%, and gold prices shed nearly 2%.
The technology sector added to investors' concerns after two companies, Seagate Technology and Informatica, reported weaker-than-expected quarterly results. Shares of Informatica, which makes enterprise software for corporations, dropped nearly 30%.
Other key technology companies traded off on fears that slowing global growth could weigh down the entire sector. Shares of other enterprise data companies Teradata, Citrix, and Autodesk also inked steep losses.
Shares of engine maker Navistar plunged after the company said it would change its engine to meet U.S. pollution standards.
Economically speaking, the U.S. Labor Department's jobs report, which showed that the economy added just 80,000 jobs in June, came in below expectations and points to signs of a deceleration in employment growth.
After a string of weak monthly jobs numbers and an unemployment rate unchanged at 8.2%, Friday's report will likely fuel argument for increased intervention by the Federal Reserve.
Still, investors are wary that the jobs numbers may not have been weak enough to spur the central bank into action when its governors meet at the end of July.
Meanwhile, governments around the world have increasingly become dependent upon action by their central banks as the global fiscal crisis continues.
International Monetary Fund director Christine Lagarde said debt problems have spilled over borders. In her speech on Friday in Japan, Lagarde said the IMF will revise down its next global forecast, due in 10 days.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.54% from 1.60% late Thursday. Treasury prices and yields move in opposite directions.
Oil for August delivery backtracked $3.08 to $84.14 U.S. a barrel.
Gold futures for August delivery dropped $30.50 to $1,578.90 U.S. an ounce.
