Stock markets in Toronto took a dip Friday morning, as investors digested contrasting jobs numbers from both sides of the border.
The S&P/TSX Composite Index slipped 64.93 points to begin Friday at 12,101.73
The Canadian dollar fell 0.75 cents to 94.34 cents U.S.
National Bank Financial raised the target price on Transat AT Inc to $13.50 from $9, harbouring the opinion that the improved pricing on trans-Atlantic routes will translate into an increase in EBITDA for the summer. Transat stock added 40 cents to $8.70
Financials proved the strongest of the subgroups, led by a 2% jump in the price of Manulife shares to $17.42. Gold shares, however, got bruised in the early going, with Barrick Gold turning south 4.2% to $14.67, and Endeavour Mining sliding 7.6% to 49 cents.
Speaking of things economic, Statistics Canada told us that In June, employment was virtually unchanged and the unemployment rate remained at 7.1%.
In the first half of 2013, employment growth averaged 14,000 per month, slower than the average of 27,000 in the last six months of 2012.
The agency also said that over this 12-month period, employment grew by 242,000, or 1.4%, and the total number of hours worked increased by 0.6%.
Also on the slate today, the Ivey Purchasing Managers Index (PMI) dipped June to 55.3 from 63.1 in May, but improved from the 49.0 figure posted in June last year.
The index delves into whether purchases last month improved on the month before. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange subtracted 3.20 points to 882.42
Eight of the 14 Toronto subgroups began the day higher, with financials progressing 0.5%, while information technology and telecom stocks improved 0.4% each.
The half-dozen laggards were weighed by gold, tumbling 3.6%, materials, down 1.7%, and metals and mining, off 1.3%.
ON WALLSTREET
Investors welcomed a report Friday that showed a larger-than-expected gain in U.S. payrolls last month, sending stocks higher at the opening bell.
The Dow Jones Industrials gained 43.62 points to begin the 15,032.20
The S&P 500 index picked up 11.02 points to 1,626.43. The tech-rich NASDAQ Composite moved ahead 14.45 points to 3,458.12.
The U.S. economy added 195,000 jobs in June, the U.S. Labor Department said. However, the unemployment rate held steady at 7.6%
Economists predicted the U.S. economy added 155,000 jobs, while the unemployment rate was expected to have ticked down to 7.5%.
The report suggested the Federal Reserve could begin to slow the pace of its $85-billion-U.S-per-month bond buying program in September, according to one expert who also said the gains in hiring should drive down the unemployment rate, which is what the U.S. Federal Reserve wants to see before it begins to taper.
The jobs report was good news for the economy and for the stock market, but it spooked investors in the bond market.
Investors have been selling bonds in anticipation of fewer Fed purchases.
Prices for the 10-year U.S. Treasury fell, raising yields to 2.69% from Wednesday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices added 37 cents to $101.81 U.S. a barrel.
Gold prices dropped $40.70 to $1,211.20 U.S. an ounce.
