Canadian Stocks Poised To Rise As US Unemployment Tumbles -- Canadian Commentary

By RTT News, 
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(RTTNews.com) - Canadian stocks are headed for a positive start Friday, with investors reacting to the upbeat monthly U.S. non-farm payrolls data.

The data released by the U.S. Labor Department showed that 288,000 jobs were added in April, the biggest in rise in more than two years and notably higher than forecasts for an increase of 215,000 jobs. Unemployment rate declined to 6.3 percent, the lowest since September 2008.

However, the significant drop in unemployment may compel the Federal Reserve to speed up their timetable for interest rate hikes, news that markets may not take well.

Data showing a notable recover in eurozone manufacturing sector is likely to aid sentiment.

Slightly higher crude oil and bullion prices may trigger some buying in energy and gold stocks.

The S&P/TSX Composite Index closed up 12.20 points or 0.08 percent at 14,664.07 on Thursday.

In corporate news, SNC-Lavalin Group, Inc. (SNC.TO) has agreed to sell its subsidiary AltaLink to Billionaire investor Warren Buffett's Berkshire Hathaway Energy for C$3.2 billion, or $2.9 billion. The deal is expected to be completed by the end of 2014.

Agnico Eagle Mines Ltd. (AEM.TO) reported a net profit of 63 cents per share for the first quarter, up from 14 cents per share in the previous year, and a loss of $2.61 per share in the fourth quarter of 2013.

Fairfax Financial Holdings Ltd. (FFH.TO) said that its net income was up sharply at US$784.6 million in the first quarter, compared to US$161.6 million in the previous corresponding quarter.

Gildan Activewear Inc (GIL.TO) reported net earnings of U.S. $0.64 per share for the second quarter, at the upper end of the guidance range it had provided earlier.

Vermilion Energy Inc	(VET.TO) has reported net earnings of $1.00 per share,

up from $0.53 in the first quarter last year.

In commodities, crude oil futures for June delivery are up $0.30 or 0.3 percent at $99.73 a barrel, after having advanced to $100.08 a barrel earlier.

Natural gas for June is down $0.014 or 0.3 percent at $4.725 per million btu.

Gold futures for June delivery are up $2.70 or 0.21 percent at $1,286.10 an ounce.

Silver for July is up $0.130 or 0.68 percent at $19.173 an ounce. Meanwhile, copper is up $0.013 or 0.42 percent at $3.034 per pound.

In the currency market, the Canadian loonie is trading at 1.0964 against the U.S. dollar, down marginally from previous close.

The Commerce Department's report on factory orders for March will be out at 10 am ET. The consensus estimate calls for a 1.4 percent month-over-month increase in factory orders.

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This article appears in: News Headlines

Referenced Stocks: AEM , GIL , VET

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