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Canada Stocks Close Higher; US Payrolls Drive Sentiment; Sectors Were Mixed; Bombardier Most Active Loser

By: MT Newswires
Posted: 8/2/2013 4:09:00 PM
Referenced Stocks:

Canadian stocks closed slightly higher, but they did into negative territory late in the session after being up more than 30 points in the morning. Sectors were mixed, led down by Industrials, but Healthcare and Metals and Mining helped buoy the broader market.

After a week of solid economic data points, Friday's U.S. jobs report was softer than expected. The U.S. is Canada's largest trading partner which gives particular meaning to important U.S. economic data up in the north. Non-farm payrolls came in at 164K compared to the 180K expected by economists. The unemployment rate ticked lower to 7.4% but this was more of a function of a decline in the labor participation rate than lower unemployment.

Oil prices were under downside pressure today, after the latest US jobs data from top consumer America was a disappointment, sparking concerns over the demand for the fuel. Despite shedding 0.9% in today's session, oil added 2.1% over the week, supported by other, more positive economic data including the ISM - which was at a multi-year high. West Texas Intermediate for September delivery closed at $106.94 a barrel.

Meanwhile, after a mostly positive session, gold reversed course to close with a 0.1% loss on the day, shedding 0.9% over the week.

Bombardier was the most active stock with no fresh news driving volume. Yesterday Bombardier Inc. (BBD-B.TO) reported second quarter 2013 adjusted earnings per share of $0.09, in line with consensus estimates. Revenues were $4.4 billion, slightly above the $4.33 billion that analysts expected. Year-ago adjusted EPS was $0.09, on revenues of $4.1 billion. The stock closed down 1.4% with 5.5 million shares changing hands.