Financials weighed on the Toronto stock market Friday as euro-zone debt worries appeared to counterbalance data showing U.S. employment growth which breezed past expectations.
The S&P/TSX Composite dipped 48.76 points to close the day and week and 12,188.64
The Canadian dollar fell 0.68 cents to 97.38 cents U.S.
Worries about spreading bank problems weighed on the TSX financial sector with Royal Bank down 29 cents to $52.05, while TD Bank slipped 18 cents to $76.47.
The energy sector backed off, although stalwarts like Suncor Energy crept ahead nine cents to $31.55, while rival Imperial Oil gained 36 cents to $46.58
The gold sector gained as Barrick Gold Corp. gained a penny to $48.87. Rival Goldcorp., however, gave back 75 cents to $45.20
The metals and mining sector was flat while Ivanhoe Mines shed 10 cents to $19.04. Teck Resources ducked back 14 cents to $38.35.
On the corporate front, the Jean Coutu Group, Quebec’s largest drug store chain, reported net profits in its fiscal third quarter rose to $51.7 million or 23 cents a share. That compared with net earnings of $48.8 million or 21 cents a year ago. Revenue increased to $700.1 million from $681.1 million and its shares gained 38 cents to $13.22.
Economically speaking, Statistics Canada reported this morning that unemployment rose to 7.5% in December and the only jobs added were part-time and self-employment positions. Full-time jobs fell by 25,500, but the net gain (full- and part-time) was 18,000.
The nation’s number crunchers further stated that over the past 12 months, employment growth totalled 199,000, or 1.2%, but with nearly all of the gains in the first half of the year.
ON BAYSTREET
The TSX Venture Exchange added 8.27 points to 1,525.73, while the Nasdaq Canada index eased 0.67 points to 381.47
All but three of the 14 Toronto subgroups went south on the day. Telecoms fell 1%, while materials suffered a 0.9% loss and energy stocks stumbled 0.8%.
The gainers were consumer discretionaries, up 1.1%, health-care, up 0.8%, and information technology, ahead 0.3%,
ON WALLSTREET
In New York, stocks were mixed Friday as worries about Europe's debt crisis dampened enthusiasm over a better-than-expected report on U.S. payrolls.
The Dow Jones Industrials was off 55.78 points to close at 12,359.90
The S&P 500 sidled back 3.25 points to 1,277.81, while the Nasdaq Composite finished ahead 4.36 points to 2,674.22.
In the United States, shares of Bank of America, JPMorgan Chase Goldman Sachs, Morgan Stanley and Citigroup all took substantial drops.
U.S. bank stocks rallied late Thursday as speculation mounted about a government refinancing program for troubled homeowners.
Elsewhere, shares of Dow component Alcoa fell 2% after the aluminum producer said it will cuts its global smelting capacity 12% in response to a drop in aluminum prices.
Alcoa will report fourth-quarter financial results next week, kicking off the latest round of corporate earnings and sales data.
Overall, earnings for the companies in the S&P 500 are expected to be up 7.5% in the final three months of 2011, versus the same period in 2010. Sales are forecast to rise 8.6% in the quarter, according to research from S&P Capital IQ.
Shares of Family Dollar fell 7% after the discount retailer said Thursday that earnings rose in the most recent quarter, but sales came in lower than expected.
While the jobs report beat expectations, some analysts said it was skewed by seasonal factors. Others said the response was muted because investors were anticipating a big gain.
In any event, traders said the market remains stymied by worries about government debt and banking problems in Europe.
Government borrowing costs remain at elevated levels in Europe, with the yield on the 10-year Italian bond above 7% yet again. And Spanish bond yields also remain on the high side, with the 10-year hovering around 5.6%.
The euro fell 0.6% versus the dollar, holding at a 15-month low.
On the economic front, the American economy gained 200,000 jobs in December, according to the U.S. Labor Department. Economist had expected a gain of 150,000 jobs. The unemployment rate also slipped to 8.5%.
Economists were forecasting the unemployment rate to tick up to 8.7% from 8.6% in November, mainly due to discouraged workers -- who had previously given up their job searches -- re-entering the labour force.
Treasury prices for the 10-year note gained slightly, driving yields down to 1.96% from Thursday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil for February delivery doffed 13 cents to $101.68 U.S. a barrel.
Gold futures for February delivery rose $2.20 to $1,622.30 U.S. an ounce.
