The Toronto stock market lost ground Friday, led by falling gold stocks as a strong U.S. job creation report for October depressed gold prices. Other data showed Canadian job growth slowed more than anticipated.
The S&P/TSX composite fell 68.25 points to approach noon Friday at 12,431.51
The Canadian dollar took on 0.02 cents to 100.35 cents U.S.
In the gold patch Goldcorp Inc. gave back $1.16 to $44.02
The energy sector was off as Canadian Natural Resources declined 44 cents to $29.88
The base metals sector advanced even as December copper was four cents lower at $3.51 U.S. a pound. Shares in Inmet Mining Corp. were up $2.68 to $55.29 as it reported that third-quarter net income grew 19% to $116.2 million as copper production and prices improved. Sales grew 29% to $327.2 million compared to $253.4 million in the year-ago period.
Industrials were also supportive as net income at construction and engineering company SNC-Lavalin Group Inc. dropped to $114.9 million or 76 cents per diluted share, down from $127.6 million or 82 cents per share in the third quarter of 2011. Its revenue increased, however, to $1.98 billion from $1.78 billion.
The revenue was in line with expectations while SNC’s profit didn’t dip as much as anticipated and its shares gained $1.26 to $41.54.
In other corporate news, Hudson’s Bay Co. says preliminary results suggest its third-quarter revenues were up 3.8% from the same time last year to $930.4 million but its margins were squeezed by shortages and seasonal clearance markdowns. The information was contained in a revised prospectus filed as part of HBC’s plans to return to the public stock market.
Resolute Forest Products, the company formerly known as AbitibiBowater, earned net income of $31 million U.S. or 32 cents per diluted share on sales of $1.2 billion U.S. in the latest quarter. That compared with a net loss of $44 million, or 46 cents per share, on sales of $1.2 billion in the third quarter of 2011. Its shares fell 50 cents to $12.
On the economic front, Statistics Canada reported Canada's job market stalled in October after two months of strong hiring
The economy added 1,800 jobs in the month, even lower than the negligible forecast rise of 5,000 jobs in economists’ polls, while the unemployment rate held steady at 7.4%
ON BAYSTREET
The TSX Venture Exchange slid 9.88 points to break for lunch at 1,311.41.
Eight of the 14 Toronto subgroups went south by noon ET. Gold tailed off 3.3%, while materials doffed 2.2% and energy lost 0.9%.
The half-dozen gainers were led north by metals and mining and utilities, each 0.4%, while real-estate was 0.3% stronger.
ON WALLSTREET
After a modestly higher open, U.S. stocks dipped into the red Friday as investors looked ahead to the election next week.
The Dow Jones Industrials dipped 31.93 points to 13,200.70, while the S&P 500 moved lower 2.34 to 1,425.25, and the Nasdaq Composite Index was off 8.46 points at 3,011.60
Friday's trading session caps a week shortened by Superstorm Sandy, as the area around the New York Stock Exchange remains without power for a fourth day. Stocks are on pace to end the three-day trading week with gains. The S&P 500 is headed for a 1% gain, while the Dow is up 0.7% and the Nasdaq is up 0.8%.
Verizon said that Hurricane Sandy may have "significantly" affected its fourth-quarter results. The company said it is working to restore communications services to affected customers, but that it could take some time.
Shares of Restoration Hardware jumped almost 30% in their stock market debut. The home decor retailer raised $124 million U.S. in its initial public offering after pricing 5.16 million shares at $24 U.S. a piece, the high end of its estimated range.
Warren Buffett's Berkshire Hathaway is buying Oriental Trading Company, a leading maker of party favours and novelties based in Berkshire's hometown of Omaha. The price of the transaction was not disclosed, but the Wall Street Journal reported it was a $500-million U.S. deal.
The monthly report has taken on increased importance amid the economic downturn. U.S. President Obama and Republican rival Mitt Romney have also been focusing much of their campaigns on who can create more jobs. The report comes just four days before the elections.
The monthly jobs report showed that the U.S. economy added 171,000 jobs last month. Economists expected 125,000 jobs. The unemployment rate ticked up to 7.9% from 7.8% in September, in line with expectations.
The price on the benchmark 10-year U.S. Treasury sagged, raising the yield to 1.74% from Thursday’s 1.71%. Treasury prices and yields move in opposite directions.
Oil prices docked $1.73 to $85.36 U.S. a barrel.
Gold prices fell off $33 per ounce to $1,682.50 U.S.
