News Column

TSX poised to start lower

August 1, 2014



U.S. job numbers disappoint







Canadian stocks looked set to open lower on the last trading day of the week, as investors digested the key U.S. jobs report.

The S&P/TSX composite index plunged 194.09 points, or 1.3%, to close at 15,330.73, with futures Friday down 0.3%.

The Canadian dollar dropped 0.06 cents to 91.63 cents U.S. early Friday

Enbridge Inc reported a better-than-expected profit in the second quarter, driven mainly by higher shipment volumes on the Canadian Mainline system.

Canadian Oil Sands Ltd said on Thursday that its second-quarter profit fell by one-fifth on lower production and higher government payments.

Canada's three biggest telecom firms, BCE Inc, Rogers Communications Inc and Telus Corp, keen to keep shareholders happy with fat dividends, are breaking into businesses ranging from banking to healthcare to drive growth as they run out of expansion options and shy away from overseas purchases.

BMO, Cowen and Company cut their target prices on Alamos Gold

ON BAYSTREET

The TSX Venture Exchange lost 9.58 points Thursday to 1,001.52

ON WALLSTREET

Investors are still seeing red across the board Friday, after markets took a dive on Thursday.

Ahead of the opening bell, futures for the Dow Jones Industrials plunged 71 points, or 0.4%, to 16,423. Futures for the S&P 500 dipped 10 points, or 0.5%, to 1,914.75, and futures for the NASDAQ fell 18.25 points, or 0.5%, to 3,866.50.

Expect GoPro shares to take a dive when trading begins. The company's earnings failed to impress and shares are down by about 10% pre-market.

Shares in LinkedIn were surging by about 7% pre-market after the company posted better-than-expected quarterly results.

Shares in other major tech companies, including Apple, Google, Facebook and Microsoft were all trading lower ahead of the open.

Major companies including Burger King, Clorox and Chevron are set to release earnings before the opening bell.

Warren Buffett's Berkshire Hathaway will report results after the close.

The market mood may have turned (or, potentially worsen) when the U.S. government's monthly jobs report came. The U.S. Labor Department reported that the economy created 209,000 new jobs, far short of projections. The unemployment rate came in at 6.2%. In June, the economy generated 288,000 new jobs.

A strong jobs report could raise fears that the Federal Reserve will hike interest rates sooner than expected.

Monthly ISM manufacturing data will be released at 10 a.m. ET. Auto sales for July will come out in the afternoon

European markets were tumbling, led by Germany's DAX, on concerns about the impact of escalating tensions with Russia on the region's fragile economy.

The European Union turned up the heat on Moscow Thursday by including Russia's biggest bank, Sberbank, on its list of sanctions targets.

Oil prices fell 62 cents to $97.55 U.S. a barrel

Gold prices gained $2.20 to $1,283.50 U.S. an ounce.



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Source: Baystreet Stock Market Update (Canada)


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