News Column

Toronto surges on jobs growth

February 7, 2014

IMO, Baytex in news

The Toronto stock market was positive Friday as Canadian employment during January breezed past expectations and traders put the best face on American jobs data that widely missed forecasts.

The S&P/TSX composite index pointed up 29.59 points to greet noon at 13,742.99

The Canadian dollar spiked 0.43 cents to 90.75 cents U.S.

The energy sector declined, with Imperial Oil off 46 cents to $45.88.

Baytex Energy was a major weight after it said Thursday that it is expanding into the lucrative Eagle Ford oil shale development in Texas through a $2.6-billion acquisition of Aurora Oil & Gas Ltd.

Its shares fell $2.43, or 5.8%, to $39.20.

Industrials also turned negative, with Bombardier off three cents to $4.17

The base metals component was slightly lower as March copper moved ahead one cent to $3.24 U.S. a pound. Teck Resources hiked 12 cents to $27.00

On matters economic, figures released by Statistics Canada revealed that 29,000 jobs were created last month mostly full-time -- and that the unemployment rate dipped two-10ths of a percentage point to stand at 7%.


The TSX Venture Exchange strengthened 3.71 points to 956.51

All but three of the 14 Toronto subgroups were higher by noon ET. Gold surged 1.6%, while materials gained 1.2%, and consumer staples were better by 1%.

The three laggards were energy, down 0.5%, telecoms, down 0.4%, and industrials, sliding 0.3%.


The three major American stock markets all rose Friday despite a tepid government jobs report showed that only 113,000 jobs were created in January.

The unemployment rate ticked down to 6.6%, its lowest level in five years. Economists expected the U.S. economy to have added 178,000 jobs.

The Dow Jones Industrial Average jumped 84.99 points to 15,713.52.

The S&P 500 index added 13.42 points to 1,786.85. The NASDAQ grew 47.90 points to 4,104.31.

On the corporate front, shares of Apple rose after the Wall Street Journal reported that CEO Tim Cook said the company bought back a big chunk of its own stock after its disappointing earnings report last month.

LinkedIn shares dropped over 8% after the professional networking site reported guidance that missed forecasts.

News Corp shares jumped following quarterly earnings that beat expectations.

Shares of Outerwall Inc. surged nearly 12% on news that the company plans to buy back $350 million U.S. worth of stock.

Stocks have had a choppy week of ups and downs. After sinking over 300 points Monday, the Dow logged its biggest gain of the year Thursday.

The Fed has cut the size of its so-called quantitative easing program twice since December: first from $85 billion per month to $75 billion, and then again to $65 billion U.S.

But the poor job growth could mean that the U.S. Federal Reserve will pause on pulling back, or tapering, its monthly bond purchases at its next meeting in March

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.67% from Thursday's 2.70%. Treasury prices and yields move in opposite directions.

Oil prices took on 44 cents to $98.28 U.S. a barrel.

Gold prices rose $5.20 to $1,262.40 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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