Canadian Stocks Are Pulling Back In Early Trade - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is losing ground in early trade Friday, following yesterday's slight increase. Trade concerns continue to weigh on investor sentiment this morning, while investors digest the widely followed U.S. jobs report.

The majority of the European markets are logging modest gains Friday morning. A dip in the value of the Euro has provided a boost to shares of exporters at the end of the trading week.

Markets on Wall Street are nearly flat in early trade Friday. While the jobs report showed weaker than expected employment growth in July this morning, it also showed upward revisions to the increases in employment in May and June.

The benchmark S&P/TSX Composite Index is down 20.92 points or 0.13 percent at 16,388.24.

On Thursday, the index closed up by 32.39 points or 0.20 percent, at 16,409.16. The index scaled an intraday high of 16,418.79 and a low of 16,266.59.

The Capped Telecommunication Services Index is down 1.08 percent. BCE Inc. (BCE.TO) is losing 0.44 percent and Rogers Communications (RCI-B.TO) is declining 0.70 percent.

TELUS (T.TO) is falling 1.96 percent after its second quarter profit met expectations.

The Capped Industrials Index is down 0.55 percent. Canadian Pacific Railway (CP.TO) is declining 0.83 percent and Canadian National Railway (CNR.TO) is falling 1.25 percent. WestJet Airlines (WJA.TO) is decreasing 0.11 percent

The heavyweight Financial Index is decreasing 0.29 percent. Royal Bank of Canada (RY.TO) is falling 0.17 percent and Canadian Imperial Bank of Commerce (CM.TO) is weakening by 0.47 percent. Toronto-Dominion Bank (TD.TO) is losing 0.31 percent and Bank of Nova Scotia (BNS.TO) is declining 0.22 percent. Bank of Montreal (BMO.TO) is lower by 0.19 percent and National Bank of Canada (NA.TO) is surrendering 0.37 percent.

The Energy Index is falling 0.17 percent. Suncor Energy (SU.TO) is lower by 0.15 percent and Encana (ECA.TO) is dropping 1.03 percent. Imperial Oil (IMO.TO) is falling 0.12 percent and Canadian Natural Resources (CNQ.TO) is surrendering 0.31 percent. Crescent Point Energy (CPG.TO) is weakening by 0.79 percent and Cenovus Energy (CVE.TO) is dipping 0.15 percent. Husky Energy (HSE.TO) is decreasing 0.46 percent.

The Gold Index is increasing 0.65 percent. Kinross Gold (K.TO) is advancing 2.03 percent and Goldcorp (G.TO) is climbing 0.82 percent. Barrick Gold (ABX.TO) is rising 1.62 percent and Eldorado Gold (ELD.TO) is up 2.22 percent. B2Gold (BTO.TO) is increasing 1.89 percent and IAMGOLD (IMG.TO) is higher by 1.11 percent.

The Capped Information Technology Index is gaining 0.56 percent. Sierra Wireless (SW.TO) is surging 17.42 percent after its second quarter results topped expectations.

Enbridge Income Fund Holdings Inc. (ENF.TO) reported earnings of $758 million or $4.33 per common share for the second quarter and $574 million or $3.28 per common share for the six-month period. The stock is rising 0.96 percent.

The Second Cup Ltd. (SCU.TO) reported net Income of $577,000 or $0.03 per share for the second quarter, compared with a Net Loss of $315,000 or $0.02 per share in the prior year. Shares are gaining 1.82 percent.

Supremex Inc. (SXP.TO) announced that second quarter revenue rose 13.8% year-over-year, to $46.8 million from $41.1 million. The stock is increasing 1.84 percent.

Aimia Inc. (AIM.TO) reported consolidated total revenue of $375.4 million for the second quarter, up 3.9% over year-ago quarter. Shares are surging 9.83 percent.

Pembina Pipeline Corporation (PPL.TO) said it posted second quarter and year-to-date earnings of $246 million and $576 million, a 110% and 76% increase, respectively, over the same periods of the prior year. The stock is adding 0.60 percent.

On the economic front, a report from Statistics Canada this morning showed that the Canadian trade deficit narrowed to C$626 million in June. Economists had expected a deficit of C$2.3 billion.

China's private sector growth weakened at the start of third quarter with both manufacturers and service providers registering weaker increases in activity, survey data from IHS Markit showed Friday.

The Caixin composite output index fell to 52.3 in July from 53.0 in June. Nonetheless, a reading above 50 indicates expansion in the private sector.

The services Purchasing Managers' Index slid more-than-expected to 52.8 from 53.9 a month ago. The score was forecast to drop moderately to 53.5.

Euro area private sector growth eased in July, ceding most of the momentum gained in the prior survey month, data from IHS Markit showed Friday. The composite output index fell to 54.3 in July, in line with flash estimate, from 54.9 in June.

Eurozone retail sales increased for the second straight month in June, data from Eurostat showed Friday. Retail sales grew at a steady pace of 0.3 percent on month in June driven by food sales. Sales were expected to climb 0.4 percent.

British service sector grew at the weakest pace in three months as greater risk aversion in response to Brexit uncertainty held back new business growth in July, survey data from IHS Markit showed Friday.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index dropped more-than-expected to 53.5 in July from 55.1 in June. The reading was forecast to fall to 54.7.

Partly reflecting a drop in government employment and the closing of Toys "R" Us stores, the Labor Department released a report on Friday showing much weaker than expected U.S. job growth in the month of July.

The report said non-farm payroll employment climbed by 157,000 jobs in July compared to economist estimates for a jump of about 190,000 jobs.

Despite the smaller than expected increase in employment, the unemployment rate dipped to 3.9 percent in July after rising to 4.0 percent in June. The modest drop matched expectations.

Reflecting a decrease in exports and an increase in imports, the Commerce Department released a report on Friday showing the U.S. trade deficit widened in the month of June.

The report said the trade deficit widened to $46.3 billion in June from a revised $43.2 billion in May. The deficit had been expected to widen to $46.5 billion from the $43.1 billion originally reported for the previous month.

In commodities, crude oil futures for August delivery are down 0.07 or 0.10 percent at $68.89 a barrel.

Natural gas for August is up 0.032 or 1.14 percent at $2.848 per million btu.

Gold futures for August are up 5.00 or 0.41 percent at $1,225.10 an ounce.

Silver for September is up 0.075 or 0.49 percent at $15.46 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2923038/canadian-stocks-are-pulling-back-in-early-trade-canadian-commentary.aspx)

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This article appears in: Politics , World Markets , US Markets , Oil , Stocks
Referenced Symbols: ABX ,

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