News Column

Stocks steady after jobs report

July 11, 2014

Gold jumps, oil slumps

Equity markets in Toronto were little changed on Friday as a gain in shares of gold miners helped overcome concerns about the labour market after a sluggish jobs report.

The S&P/TSX composite index faded 2.84 points to greet noon at 15,111.64

The Canadian dollar dropped 0.61 cents to 93.29 cents U.S.

Worries about soft growth will keep the Bank of Canada from hiking interest rates until late next year, although rising prices are expected to make it temper concerns about low inflation in its policy statement next week. That word from a recent Reuters poll.

The gold-mining sector jumped with Barrick Gold advancing 2.2% to $20.20 and Goldcorp climbing 2.2% to $30.40.

With oil prices slipping, shares of energy producers declined as Suncor Energy Inc shed 1% to $44.54, and Encana lost 1.5% to $23.45.

On the economic beat, Statistics Canada reported this morning that Canadian economy unexpectedly shed 9,400 jobs in June and the unemployment rate rose to 7.1% from 7.0% in May, underlining how employment growth has stalled despite a recovery in the United States.


The TSX Venture Exchange eased 0.50 points to 1,022.35.

In all, 10 of the 14 Toronto subgroups were higher, with gold up 1.7%, health-care gaining 0.9% and materials better by 0.8%.

The four laggards were weighed by energy, down 1.2%, consumer staples, down 0.3%, and the metals and mining sector, fading 0.1%.


The Dow Jones industrial average, the S&P 500 and the NASDAQ were all drifting between small gains and losses. Perhaps it's a bit of relief from Thursday when stock tumbled as worries about a banking crisis in Portugal and weak economic data out of Europe weighed on the market.

The Dow gave back 23.15 points to 16,891.92

The S&P 500 fell 2.09 points to 1,962.35, and the NASDAQ composite pulled ahead 6.51 points to 4,402.71.

Shares of Wells Fargo were under pressure after the nation's largest bank by market cap reported earnings that were in line with analysts' expectations.

Wells Fargo is the first major U.S. bank to report second-quarter results. Citibank ,JPMorgan, Goldman Sachs, Bank of America and Morgan Stanley all open their books next week.

Imperial Tobacco, a global tobacco company based in England, is in talks to buy certain brands from Reynolds American and Lorillard. The deal would combine two of the largest U.S. cigarette brands into a company with a potential market value of $56 billion U.S., according to Daniel Sugarman, a market strategist at ETX Capital in London.

Amazon has asked the Federal Aviation Administration for permission to conduct tests of its planned drone delivery service near its headquarters in Seattle. The stock was up nearly 5% in early trading, though it's still down sharply for the year.

Shares of Digital Alley soared after the maker of video surveillance equipment said the Patent and Trademark Office had approved its initial patent on technology used by law enforcement officers to connect "body cameras and in-car video systems."

Trading in shares of Cynk Technology, which have soared 25,000% since mid-June, was halted Friday by the Securities and Exchange Commission. The SEC said the suspension was due to concerns about "the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK's common stock."

Major European exchanges regained composure Friday, bouncing back after worries over a Portuguese bank eased.

Shares in Banco Espirito Santo were suspended on Thursday, but not before they slumped 17%, taking losses for the year to 46%. Banco Esperito resumed trading Friday and said it has sufficient capital to cover any losses. The stock stabilized Friday after regulators announced a temporary ban on short selling in the bank's shares.

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.51% from Thursday's 2.53%. Treasury prices and yields move in opposite directions.

Oil prices $1.43 to $101.50 U.S. a barrel.

Gold prices sank $1.90 to $1,337.30 U.S. an ounce.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Baystreet Stock Market Update (Canada)

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