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Canadian Stocks Are Sinking After US Jobs Report - Canadian Commentary

The Canadian stock market is down sharply Friday morning. Every Canadian sector is trading in the red, with healthcare gold and energy stocks under heavy pressure. Commodity prices are falling after the strong U.S. jobs report for January has convinced investors that the Federal Reserve is likely to hike rates in March.

Markets in Europe are down again Friday, extending their losing streak to five sessions. Bank stocks are under pressure following a disappointing report from Deutsche Bank.

Markets on Wall Street are falling in early trade Friday. Concerns about higher interest rates are weighing on investors after the Labor Department released a report showing stronger than expected job growth and a jump in wages.

The benchmark S&P/TSX Composite Index is down 188.13 points or 1.19 percent at 15,672.79.

On Thursday, the index closed down 100.52 points or 0.63 percent, at 15,851.15. The index scaled an intraday high of 15,922.59 and a low of 15,817.98.

The Capped Healthcare Index is lower by 6.12 percent. Valeant Pharmaceuticals International (VRX.TO) is down 0.04 percent and Extendicare (EXE.TO) is losing 1.27 percent. Concordia International (CXR.TO) is dropping 6.82 percent and ProMetic Life Sciences (PLI.TO) is declining 3.89 percent.

The Gold Index is decreasing 2.22 percent. Gold prices are falling Friday morning as an upbeat US jobs report solidified expectations the Federal Reserve will raise interest rates in March.

Barrick Gold (ABX.TO) is falling 2.94 percent and Goldcorp (G.TO) is declining 2.23 percent. Yamana Gold (YRI.TO) is losing 2.12 percent and Kinross Gold (K.TO) is weakening by 3.75 percent. Eldorado Gold (ELD.TO) is decreasing 3.48 percent and B2Gold (BTO.TO) is lower by 2.65 percent. IAMGOLD (IMG.TO) is surrendering 2.34 percent.

The Capped Materials Index is down 2.37 percent. Agnico Eagle Mines (AEM.TO) is lower by 2.01 percent and Franco-Nevada (FNV.TO) is declining 2.28 percent. Nutrien (NTR.TO) is losing 2.04 percent

The Energy Index is falling 2.02 percent. Crude oil prices are falling Friday morning ahead of the U.S. rig count.

Canadian Natural Resources (CNQ.TO) is losing 1.60 percent and Crescent Point Energy (CPG.TO) is declining 3.76 percent. Encana (ECA.TO) is falling 3.13 percent and Husky Energy (HSE.TO) is weakening by 1.30 percent. Suncor Energy (SU.TO) is decreasing 1.39 percent and Cenovus Energy (CVE.TO) is dropping 3.11 percent.

Imperial Oil (IMO.TO) is lower by 3.87 percent after it slipped to a fourth quarter loss due to impairment charges.

The Capped Information Technology Index is losing 0.92 percent. BlackBerry (BB.TO) is declining 2.02 percent and Sierra Wireless (SW.TO) is falling 2.92 percent. Constellation Software (CSU.TO) is weakening by 0.79 percent and Descartes Systems Group (DSG.TO) is lower by 1.40 percent.

The Capped Industrials Index is down 0.85 percent. Canadian Pacific Railway (CP.TO) is falling 1.25 percent and Canadian National Railway (CNR.TO) is weakening by 0.39 percent. Bombardier (BBD-B.TO) is dropping 2.20 percent and Finning International (FTT.TO) is losing 1.09 percent.

The heavyweight Financial Index is decreasing 0.62 percent. Royal Bank of Canada (RY.TO) is losing 0.32 percent and National Bank of Canada (NA.TO) is falling 0.66 percent. Bank of Montreal (BMO.TO) is weakening by 0.38 percent Canadian Imperial Bank of Commerce (CM.TO) is lower by 0.78 percent. Bank of Nova Scotia (BNS.TO) is surrendering 0.43 percent.

The Capped Telecommunication Services Index is down 0.45 percent. TELUS (T.TO) is weakening by 0.13 percent and Rogers Communications (RCI-B.TO) is lower by 0.35 percent. BCE (BCE.TO) is dropping 0.65 percent.

Saputo Inc. (SAP.TO) announced earnings for third quarter that declined from last year. The stock is falling 0.41 percent.

Motorola Solutions (MSI) will acquire surveillance company Avigilon (AVO.TO) in an all-cash transaction valued at $1 billion. Shares of Avigilon are surging 17.88 percent.

On the economic front, Eurozone producer price inflation eased at a faster-than-expected pace in December, data from Eurostat showed Friday. Producer prices climbed 2.2 percent year-over-year in December, slower than the 2.8 percent rise in November. Economists had expected the inflation to ease to 2.3 percent.

British construction activity expanded at the slowest pace in four months in January, survey results from IHS Markit showed Friday. The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell more-than-expected to 50.2 in January from 52.2 in December. It was expected to fall to 52.0.

Employment in the U.S. jumped by more than anticipated in the month of January, according to a closely watched report released by the Labor Department on Friday. The report said non-farm payroll employment surged up by 200,000 jobs in January after climbing by an upwardly revised 160,000 jobs in December.

Economists had expected employment to increase by about 180,000 jobs compared to the addition of 148,000 jobs originally reported for the previous month.

In commodities, crude oil futures for March delivery are down 1.05 or 1.60 percent at $64.75 a barrel.

Natural gas for March is up 0.01 or 0.35 percent at $2.866 per million btu.

Gold futures for April are down 15.40 or 1.14 percent at $1,332.50 an ounce.

Silver for March is down 0.435 or 2.54 percent at $16.72 an ounce.

by RTTNews Staff Writer

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