Canadian shares fell on Friday after the labor market surprisingly weakened in July, hinting at a sluggish economic start to the third quarter, and earnings of companies from Dorel Industries to Black Diamond Group lagged behind analysts' predictions.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) skidded 0.2 percent to 12,533.76 at 12:02 p.m. in Toronto on Friday.
Canada lost a net 39,400 jobs last month, and the joblessness rate accelerated to 7.2 percent from 7.1 percent in June, Statistics Canada said on Friday. Economists polled by Reuters had predicted the creation of 10,000 new jobs in July, and no change in the unemployment rate.
Financials, the main measure's most heavily-weighted sector, dropped 0.6 percent, as six of the gauge's ten share groups declined. Royal Bank of Canada (TSE:RY), Canada's biggest lender, fell 0.9 percent to C$63.43. Toronto-Dominion Bank (TSE:TD), Canada’s second-largest lender by assets, retreated 0.6 percent.
Black Diamond Group Ltd. (TSE:BDI), which provides temporary workspace for urban and industrial customers, lost 6.1 percent to C$23.60 as the company posted lower-than-estimated profit.
Energy producers, the main index's second most heavily weighted sector, inched down 0.1 percent. Canadian Natural Resources Ltd. (TSE:CNQ), Canada’s second-largest energy company by market value, lost 0.8 percent to C$31.55.
The consumer discretionary group rose 0.5 percent. Magna International Inc. (TSE:MG), North America’s largest auto-parts maker, climbed 3.1 percent to C$82.67 after touching a lifetime high of C$82.82. The Aurora, Ontario-based company posted a 16 percent jump in second-quarter sales to $8.96 billion. Net income increased 19 per cent to $415 million.
Dorel Industries Inc. (TSE:DII.B), a bicycle and baby gear maker based in Montreal, Quebec, tumbled 15 percent to C$31.20 after reporting earnings short of projections and announcing plans to cut its workforce. Net income declined to $13.2 million, or 41 cents a share, from $30.3 million or 95 cents a share a year earlier. Revenue dropped to $600.4 million from $633.7 million.
Information technology shares gained 0.5 percent, paced by Blackberry Ltd. (TSE:BB), the embattled smartphone maker. The stock advanced 4.5 percent to C$9.94 after reaching C$10.24, the highest intraday price in more than a year, after a media report said the company mulls going private. The company’s board may seek a buyer to take it private, Reuters reported on Friday, citing unidentified people familiar with the talks. The Waterloo, Ontario-based smartphone maker hasn’t started a formal sale process, according to the report.
The materials group, which includes mining shares, advanced 1.5 percent. Goldcorp Inc. (TSE:G) added 0.7 percent to C$28.25. Barrick Gold Corp. (TSE:ABX) rallied 2.8 percent to C$18.10.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) edged down 0.1 percent to 914.64 at 12:12 p.m., stretching this year's losses. The 393-member measure surrendered 25.1 percent since the beginning of the year through Thursday.
In commodities, crude for September delivery advanced 2.2 percent to $105.66 a barrel at 11:58 a.m. on the New York Mercantile Exchange, while gold futures for December delivery rose 0.3 percent to $1,313.30 an ounce at 12:15 p.m. on the Comex in New York.
In the U.S., shares wavered on Friday as material producers climbed on data from China and investors expanded pondering whether the Federal Reserve may pare bond purchases in September as the economy strengthens. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.7 percent and the S&P 500 (INDEXSP:.INX) slipped 0.4 percent at 11:11 a.m. in New York.
Reported by Proactive Investors 19 hours ago.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) skidded 0.2 percent to 12,533.76 at 12:02 p.m. in Toronto on Friday.
Canada lost a net 39,400 jobs last month, and the joblessness rate accelerated to 7.2 percent from 7.1 percent in June, Statistics Canada said on Friday. Economists polled by Reuters had predicted the creation of 10,000 new jobs in July, and no change in the unemployment rate.
Financials, the main measure's most heavily-weighted sector, dropped 0.6 percent, as six of the gauge's ten share groups declined. Royal Bank of Canada (TSE:RY), Canada's biggest lender, fell 0.9 percent to C$63.43. Toronto-Dominion Bank (TSE:TD), Canada’s second-largest lender by assets, retreated 0.6 percent.
Black Diamond Group Ltd. (TSE:BDI), which provides temporary workspace for urban and industrial customers, lost 6.1 percent to C$23.60 as the company posted lower-than-estimated profit.
Energy producers, the main index's second most heavily weighted sector, inched down 0.1 percent. Canadian Natural Resources Ltd. (TSE:CNQ), Canada’s second-largest energy company by market value, lost 0.8 percent to C$31.55.
The consumer discretionary group rose 0.5 percent. Magna International Inc. (TSE:MG), North America’s largest auto-parts maker, climbed 3.1 percent to C$82.67 after touching a lifetime high of C$82.82. The Aurora, Ontario-based company posted a 16 percent jump in second-quarter sales to $8.96 billion. Net income increased 19 per cent to $415 million.
Dorel Industries Inc. (TSE:DII.B), a bicycle and baby gear maker based in Montreal, Quebec, tumbled 15 percent to C$31.20 after reporting earnings short of projections and announcing plans to cut its workforce. Net income declined to $13.2 million, or 41 cents a share, from $30.3 million or 95 cents a share a year earlier. Revenue dropped to $600.4 million from $633.7 million.
Information technology shares gained 0.5 percent, paced by Blackberry Ltd. (TSE:BB), the embattled smartphone maker. The stock advanced 4.5 percent to C$9.94 after reaching C$10.24, the highest intraday price in more than a year, after a media report said the company mulls going private. The company’s board may seek a buyer to take it private, Reuters reported on Friday, citing unidentified people familiar with the talks. The Waterloo, Ontario-based smartphone maker hasn’t started a formal sale process, according to the report.
The materials group, which includes mining shares, advanced 1.5 percent. Goldcorp Inc. (TSE:G) added 0.7 percent to C$28.25. Barrick Gold Corp. (TSE:ABX) rallied 2.8 percent to C$18.10.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) edged down 0.1 percent to 914.64 at 12:12 p.m., stretching this year's losses. The 393-member measure surrendered 25.1 percent since the beginning of the year through Thursday.
In commodities, crude for September delivery advanced 2.2 percent to $105.66 a barrel at 11:58 a.m. on the New York Mercantile Exchange, while gold futures for December delivery rose 0.3 percent to $1,313.30 an ounce at 12:15 p.m. on the Comex in New York.
In the U.S., shares wavered on Friday as material producers climbed on data from China and investors expanded pondering whether the Federal Reserve may pare bond purchases in September as the economy strengthens. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.7 percent and the S&P 500 (INDEXSP:.INX) slipped 0.4 percent at 11:11 a.m. in New York.
Reported by Proactive Investors 19 hours ago.