Canada’s main stock market opened lower on Friday, as resource stocks led the market lower, while stronger-than-expected North American jobs data raised expectations of a September interest rate hike in the United States and dampened the likelihood of the Bank of Canada cutting rates.
The S&P/TSX composite index dropped 67.35 points to open Friday at 14,952.04
The Canadian dollar slipped 0.23 cents to 79.77 cents U.S.
Cenovus Energy Inc. has agreed to buy the Bruderheim, Alberta, crude-by-rail terminal from Canexus Corp for $75 million in cash, the two companies said on Thursday. The 70,000 barrel-per-day Bruderheim facility was western Canada's first unit train terminal, capable of loading more than 100 tank cars of crude in one go at a cheaper rate than mixed cargo manifest trains.
Cenovus shares strengthened 23 cents, or 1.1%, to $20.48, while Canexus shares eked ahead four cents, or 2.8%, to $1.48.
DavidsTea Inc's initial public offering has been priced at $19 per share, a market source told Reuters, valuing the Canadian loose-leaf tea retailer at about $440 million. The company's initial public offering of 5.1 million shares raised about $96.9 million at that price, which was above the already raised price range of $17.00-$18.00.
CIBC cut the target price on Saputo Inc. to $33.00 from $35.00 saying that lower dairy prices and increased competition is taking a greater-than-expected toll on the company. Saputo shares shed $1.50, or 4.6%, to $31.05.
Economically speaking, Statistics Canada reported that the economy added 59,000 jobs in May. However, the agency adds that more Canadians were looking for work last month, leaving the unemployment rate unchanged at 6.8% for the fourth consecutive month.
ON BAYSTREET
The TSX Venture Exchange slid 0.40 points to 683.73.
Nine of the 14 TSX subgroups were lower to start out, as gold dulled in price 2.6%, materials shaved off 1.3%, and consumer staples lost 0.8%
The five gainers were led by energy, gushing 0.7%, industrials, nosing up 0.2%, and metals and mining, eking up 0.1%.
ON WALLSTREET
U.S. stocks attempted to shake off early losses on Friday as investors weighed a bond yield rally on a strong jobs report, which supports the case for a rate hike this year.
The Dow Jones Industrials subsided 9.91 points to 17,895.67. Goldman Sachs and JPMorgan Chase hit new multi-near highs and were among the few blue chip gainers.
The S&P 500 index faded 4.15 points to 2,091.69. The NASDAQ dropped 3.18 points to 5,055.94.
Cybersecurity stocks Palo Alto Networks, FireEye, and Fortinet are in focus following news of the massive cyber attack that compromised the information of about four million federal employees.
U.S. non-farm payrolls totaled 280,000 in May, beating expectations, with unemployment slightly above forecasts at 5.5% Average hourly earnings increased by eight cents, also beating expectations. The labor force participation rate gained to 62.9%.
In its annual assessment of the U.S. economy, the International Monetary Fund said on Thursday the Fed should delay a rate hike until the first half of next year until there are signs of a rebound in wages and inflation.
Prices for 10-year U.S. Treasuries collapsed, lifting yields to 2.40% from Thursday’s 2.31%. Treasury prices and yields move in opposite directions.
Oil prices staggered 89 cents a barrel to $57.11 U.S.
Gold prices fell $10.10 at $1,165.10 U.S. an ounce.
