Canada's main stock index advanced to its highest heights in more than four months on Friday as strong U.S. jobs data boosted investor sentiment and higher oil prices lifted shares of energy producers.
The S&P/TSX composite index remained positive 24.99 points – off its highs of the morning -- to reach noon at 15,149.91
The Canadian dollar docked 0.51 cents to 79.90 cents U.S.
The benchmark Canadian index looked on track to record a weekly gain of 3.5%. It is up nearly 4% so far this year.
Banks and other financial stocks made strong gains, as Royal Bank of Canada added 1.6% to $76.63 and insurer Manulife Financial was up 2% to $21.79.
Shares of oil producers climbed 1.4%, supported by strength in crude prices. Suncor Energy gained 1.4% to $39.09, and Penn West Petroleum jumped 5.1% to $2.90.
Economically speaking, Statistics Canada reported this morning that the job market benefiting from folks doing more part-time work.
Employment increased by 35,000 in January, resulting in an unemployment rate declining 0.1 percentage points to 6.6%.
Moreover, the agency said, contractors took out building permits worth $7.1 billion in December, up 7.7% from November. This followed a 13.6% decline the previous month.
StatsCan added the December hike resulted mostly from greater construction plans in non-residential units in Alberta and British Columbia.
ON BAYSTREET
The TSX Venture Exchange erased 3.59 points to 690.34
Eight of the 14 Toronto subgroups went south midday, weighed mostly by gold, down 5.1%, materials, off 3%, and global base metals, sliding 1.2%.
The half-dozen gainers were led by financials, up 1.6%, health-care, up 1.4%, and industrials, up 1%.
ON WALLSTREET
U.S. stocks traded moderately higher on Friday, as cheer over a strong jobs report was slightly offset by increased potential for an earlier Fed interest rate hike.
The Dow Jones Industrials gained 43.28 points, to greet noon at 17,928.16, following Thursday’s 230-point-plus gain. JPMorgan Chase traded 3% higher to lead blue chip gains. Goldman Sachs also traded nearly 2% higher.
The S&P 500 gained 8.11 points to 2,070.63. Financials, a likely beneficiary of higher interest rates, rose more than 1% to lead gains on the S&P 500
The NASDAQ index added 14.27 points to 4,779.37.
Friday is a much quieter day for earnings, with Moody's and Madison Square Garden posting earnings that beat expectations. CBOE Holdings missed expectations. Energy company Dominion is due to report after the bell.
Social media stocks Twitter and LinkedIn surged more than 10% on Friday, following strong earnings reports. Yelp fell more than 20% on weak guidance.
The U.S. Labor Department said the economy created 257,000 jobs in January, beating estimates of about 230,000. More importantly, average hourly earnings grew by 0.5%, above estimates.
The unemployment rate rose to 5.7%, above estimates.
Thursday's reports showed non-farm productivity fell a greater-than-expected 1.8% for the fourth quarter. Economists had forecast productivity, which measures hourly output per worker, rising at a 0.5% pace.
Prices for 10-year U.S. Treasuries stumbled, raising yields to 1.93% from Thursday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices spiked $1.25 per barrel to $51.74 U.S.
Gold prices plummeted $30.60 an ounce to $1,232.10 U.S.
