Canadian Stocks Have Given Back Early Gains - Canadian Commentary

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(RTTNews.com) - The Canadian stock market got off to a positive start Friday, but has since given back most of its early gains. Traders are reacting to a pair of jobs report from the U.S. and Canada this morning.

A report from Statistics Canada this morning showed that the Canadian economy added 11,200 jobs in October. Economists had expected an increase of 15,000 jobs.

The unemployment rate also dipped to 5.8 percent, from 5.9 percent last month. Economists had expected the rate to remain unchanged.

Markets in Europe are trading to the upside Friday. Traders reacted positively to reports that U.S. President Donald Trump and Chinese President Xi Jinping have expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting at the end of November in Argentina.

Markets on Wall Street opened higher Friday morning, but have since pared their gains. The positive start was fueled by the stronger than expected U.S. jobs report for October.

The benchmark S&P/TSX Composite Index is down 4.46 points or 0.03 percent at 15,145.69.

On Thursday, the index closed up by 122.87 points or 0.82 percent, at 15,150.15. The index scaled an intraday high of 15,150.15 and a low of 15,029.18.

The heavyweight Financial Index is increasing 0.73 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.66 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.92 percent. National Bank of Canada (NA.TO) is higher by 0.79 percent and Royal Bank of Canada (RY.TO) is climbing 0.54 percent. Toronto-Dominion Bank (TD.TO) is rising 0.67 percent and Bank of Montreal (BMO.TO) is advancing 0.65 percent.

The Capped Industrials Index is up 0.62 percent. Canadian Pacific Railway (CP.TO) is rising 1.42 percent and Canadian National Railway (CNR.TO) is higher by 0.65 percent. Air Canada (AC.TO) is climbing 1.62 percent and Bombardier (BBD-B.TO) is increasing 0.91 percent. Finning International (FTT.TO) is gaining 0.81 percent.

The Capped Materials Index is up 0.75 percent. Nutrien (NTR.TO) is gaining 1.07 percent.

The Energy Index is rising 0.10 percent. Cenovus Energy (CVE.TO) is advancing 1.91 percent and Suncor Energy (SU.TO) is increasing 1.72 percent. Imperial Oil (IMO.TO) is climbing 3.98 percent.

Enbridge Inc. (ENB.TO) is falling 1.25 percent after it reported adjusted earnings of $933 million or $0.55 per common share for the third quarter, compared to $632 million or $0.39 per common share in the third quarter of 2017.

The Gold Index is increasing 0.15 percent. Goldcorp (G.TO) is gaining 0.64 percent and IAMGOLD (IMG.TO) is rising 2.74 percent. Eldorado Gold (ELD.TO) is higher by 2.17 percent and B2Gold (BTO.TO) is adding 1.19 percent. Yamana Gold (YRI.TO) is climbing 0.96 percent.

The Capped Telecommunication Services Index is down 0.65 percent. BCE (BCE.TO) is lower by 1.07 percent and TELUS (T.TO) is losing 0.93 percent.

The Capped Information Technology Index is losing 0.43 percent. BlackBerry (BB.TO) is falling 1.69 percent and Sierra Wireless (SW.TO) is weakening 0.62 percent. Constellation Software (CSU.TO) is down 0.73 percent.

Saputo Inc. (SAP.TO) is losing 4.06 percent after it reported net income of $163.1 million for the second quarter ending Sept. 30, 2018. down 11.9% compared to its income in the year-ago quarter.

Canada Goose Holdings Inc. (GOOS.TO) is rising 3.21 percent after it announced that it would acquire Baffin Inc. to expand into footwear business. The company said that it will pay $32.5 million for Baffin, which focuses mostly on outdoor and industrial boots but added a clothing line in 2011.

Fairfax Financial Holdings Ltd. (FFH.TO) is down 2.14 percent after it reported third quarter net income of US$106.2 million, or US$3.34 per diluted share after dividends, down from the US$476.9 million or US$16.42 per share for the same quarter last year.

On the economic front, a report from Statistics Canada this morning showed that the Canadian trade deficit narrowed to C$416 million in September. Economists had expected surplus of C$150 million.

The euro area manufacturing sector expanded at the slowest pace in more than two years in October, final data from IHS Markit showed on Friday. The manufacturing Purchasing Managers' Index for Eurozone fell to a 26-month low of 52.0 from 53.2 in September.

German manufacturing sector growth eased to its lowest in nearly two-and-a-half years in October as orders dropped for the first time since late-2014, final data from IHS Markit showed on Friday. The manufacturing purchasing managers' index, or PMI, dropped to 52.2 from 53.7 in September.

France's manufacturing sector slowed in October, in line with initial estimations, at the slowest pace in over two years, final figures from IHS Markit showed on Friday. The manufacturing Purchasing Managers' Index, or PMI, fell to 51.2 from 52.5 in September. The latest reading was the lowest in 25 months.

UK construction sector expansion unexpectedly accelerated in October, but firms were the least optimistic about prospects in nearly six years, survey data from IHS Markit showed on Friday. The IHS Markit/ Chartered Institute of Procurement & Supply construction Purchasing Managers' Index, or PMI, rose to 53.2 from 52.1 in September. Economists had expected a score of 52.

A closely watched report released by the Labor Department on Friday showed employment in the U.S. jumped by much more than anticipated in the month of October. The Labor Department said non-farm payroll employment surged up by 250,000 jobs in October after rising by a downwardly revised 118,000 jobs in September.

Economists had expected an increase of about 190,000 jobs compared to the addition of 134,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate in October was unchanged from the previous month at 3.7 percent, its lowest level since hitting 3.5 percent in December of 1969.

With the value of imports rising by more than the value of exports, the Commerce Department released a report on Friday showing the U.S. trade deficit widened more than expected in the month of September. The report said the trade deficit widened to $54.0 billion in September from a revised $53.3 billion in August. Economists had expected the trade deficit to widen to $53.6 billion.

In commodities, crude oil futures for November delivery are down 0.18 or 0.28 percent at $63.51 a barrel.

Natural gas for November is down 0.029 or 0.90 percent at $3.208 per million btu.

Gold futures for December are down 3.00 or 0.24 percent at $1,235.60 an ounce.

Silver for December is up 0.038 or 0.26 percent at $14.815 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2951092/canadian-stocks-have-given-back-early-gains-canadian-commentary.aspx)

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This article appears in: World Markets , 401k , Insurance , Banking and Loans , Oil , Retirement
Referenced Symbols: AUY ,

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