Stocks Stumble Following Jobs Numbers



Equities in Canada’s largest centre engaged in a brisk round of profit taking before going off for the weekend, following a short week. Energy and Industrials felt the bruises hardest, after disappointing employment news.

The TSX Composite Index dived 184.99 points to conclude Friday at 22,059.03. On the week, the benchmark index gained 504 points, or

The Canadian dollar slid 0.11 cents to 73.34 cents U.S.

In corporate news, the federal government approved Switzerland-based miner Glencore’s $6.93-billion takeover of Teck Resources’ steelmaking coal unit with strict conditions to preserve jobs. Teck shares shed 21 cents, or 1.3%, to $68.74.

Energy weighed most heavily on the market this week, with Kelt Exploration dropping 34 cents, or 5.2%, to $6.15, while Parex Resources fell 87 cents, or 4%, to $20.95.

Industrials lost a bundle, too, with Bombardier sinking $2.17, or 2.4%, to $84.82, while Finning International sank 99 cents, or 2.4%, to $39.68.

In utilities, Brookfield Infrastructure Partners lost $1.62, or 4%, to $38.76, while Brookfield Renewable units handed back 88 cents, or 2.5%, to $34.75.

Gold tried to restore things, with Equinox Gold surging 46 cents, or 6.2%, to $7.97, while OceanaGold adding 15 cents, or 4.5%, to $3.48.

In materials, Calibre Mining marched 11 cents, or 5.7%, to $2.05, while Silvercrest Metals strengthened 45 cents, or 3.9%, to $12.14.

In health-care, Bausch Health Companies attached 35 cents, or 3.8%, to $9.86.

On the economic front, Statistics Canada the economy lost 1,400 jobs in June, boosting the unemployment rate 0.2 percentage points to 6.4%. Elsewhere, the seasonally-adjusted IVEY PMI leaped to 62.5 in June to 52.0 from 52.0 in May and 50.2 in June 2023. A reading above 50 indicates an increase in activity.

ON BAYSTREET

The TSX Venture Exchange gained 5.88 points, or 1%, to 583.82. On the week, the index gained 15 points, or 2.64%.

Eight of the 12 TSX subgroups finished the day negative, with energy slipping 2.4%, industrials fading 0.9%, and utilities off 0.8%.

The four gainers were led by gold, up 2.7%, while materials forged up 1%, and health-care strengthened 0.3%.

ON WALLSTREET

The S&P 500 rose to a new high on Friday, putting the broad-market index on track for yet another weekly gain during the holiday-shortened trading week. The tech-heavy NASDAQ Composite also hit a new high.

The Dow Jones Industrials climbed 67.87 points to end Friday at 39,375.87.

The much-broader index gained 30.17 points to 5,567.19.

The NASDAQ popped 164.46 points to 18,352.76.

All three major indexes are on track to finish the week in the green. The NASDAQ has taken on more than 3.2%, and the S&P 500 has climbed more than 1.6% in the week. The Dow has lagged this week, adding around 0.5%. Markets were closed Thursday for Independence Day.

The S&P 500’s rally this year has grown to 16.7% with the benchmark on pace for its fourth positive week in the last five as investors bet any economic weakness later this year will be met with a Federal Reserve rate cut. The NASDAQ’s year-to-date gain is 22.3%.

Widely monitored labour data released Friday morning reflected a 206,000 increase in non-farm payroll adds in June and a slight uptick in the unemployment rate, which rose to 4.1%. Economists expected the jobless rate to remain steady at 4%.

Tesla rose more than 2%, adding to its whopping week-to-date gain of more than 27%, while Apple shares rose 2% to a new all-time high.

Nvidia lagged following a rare Wall Street downgrade, which cited limited upside for the chipmaker. The stock is still up 1.9% for the week.

Prices for the 10-year Treasury jumped, lowering yields to 4.28% from Wednesday’s 4.35%. Treasury prices and yields move in opposite directions.

Oil prices dropped 34 cents at $83.14 U.S. a barrel.

Gold prices bounced $28.10 to $2,392.60



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