North American stock markets deepened their losses near midday Friday as investors digested a weak showing in the latest U.S. jobs data and in factory orders.
The S&P TSX Composite Index ended the day and a short week down 98.36 points to 11,196.06
Thursday, of course, Canadian markets were closed for Canada Day.
TSX metals and mining stocks were up in the wake of a retreat by the Australian government from a planned 40% tax on booming profits in the mining industry.
Mining companies had campaigned mightily against the proposed tax, and it was a key factor in the sudden ouster of Kevin Rudd as prime minister after he refused to negotiate. Friday’s announcement from new Prime Minister Julia Gillard effectively removed the issue from the political agenda.
Gold stocks slipped, as Barrick Gold Corp. fell $2.30 to $46.02.
In Canadian corporate news, Atlantic Power Corp. said it will buy a 27% interest in Idaho Wind Partners 1, which owns 11 wind farms in Idaho, for $40 million. Its shares were down six cents at $12.29.
Lions Gate Entertainment Corp. has adopted a shareholder rights plan or "poison pill" to fend off unwanted takeovers, a day after billionaire activist investor Carl Icahn disclosed he owns about 33.9% of the film producer and distributor’s stock.
The Canadian dollar skidded 0.31 cents at 94.08 cents U.S.
ON BAYSTREET
The 14 TSX subgroups were evenly divided between winners and losers. Gold weighed most heavily on the latter group, dropping 4.5% of its strength, while materials skidded 2.3% and information technology issues shed 1%.
Health-care stocks were the strongest of the gainers, picking up 0.3%, telecoms up 0.2% and consumer staples ahead 0.1%.
The TSX Venture Exchange stumbled 30.94 points to 1,384.95 while the Nasdaq Canada index was down 5.62 points to 580.04
ON WALLSTREET
In New York, stocks erased losses Friday, turning higher near the close after falling to new 2010 lows during the session, in the aftermath of a weaker-than-expected June jobs report.
The Dow Jones industrial average slid 46.05 points to end the day at 9,686.48
The S&P 500 index sank 4.79 points to 1,022.58.
The Nasdaq composite index moved 9.57 points lower to 2,091.79
The Dow and Nasdaq ended at fresh eight-month lows and the S&P 500 at a nine-month low.
Stocks slid through most of the day as investors digested the jobs report ahead of a long holiday weekend. All U.S. financial markets are closed Monday in observance of Independence Day.
Stocks have tumbled in recent weeks, with the S&P 500 down more than 15% since the April highs on worries about the European debt crisis and U.S. economy. Stocks hit the lowest levels of the year Thursday following worse-than-expected economic readings on manufacturing and housing.
On Friday, the jobs report provided little relief, showing a rise in private sector hiring that was smaller than expected, and a drop in the overall number of non-farm payrolls.
Stock declines were broad based, with all 30 Dow components falling, led by Caterpillar, Chevron, IBM, JPMorgan Chase, 3M and Verizon Communications.
Bank stocks were hit hard, with the KBW bank sector index falling 2%. Truckers, railroads and airlines were hit by worries about the economic slowdown
Economically speaking, the Labor Department said payrolls shed 125,000 workers last month, the first job loss since last December, but the unemployment rate ticked lower to 9.5%, the lowest level since June 2009.
Economists surveyed by Briefing.com had forecast an overall loss of about 100,000 jobs for June, and they expected the unemployment rate to have risen to 9.8% from 9.7%.
The government said the decline was due mostly to a decrease of 225,000 temporary Census employees.
Meanwhile, the private sector added 83,000 jobs during the month.
In the day's other economic report, the Commerce Department said factory orders fell 1.4% in May after rising 1% in April. Economists thought orders would fall 0.6%.
Treasury prices listed lower, thus raising the 10-year note's yield to 2.98% from Thursday’s 2.93%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil moved lower by 69 cents to $72.26 U.S.
Gold prices nipped up six dollars to $1,212 U.S. an ounce.
