Plus   Neg

Canadian Stocks Are Up On Solid Employment Data - Canadian Commentary

The Canadian stock market is climbing in early trade Friday, following yesterday's sharp pullback. Energy stocks are leading the way higher this morning as crude oil prices rebound. Traders are keeping a close eye on the developments from the OPEC meeting in Vienna in hopes that an agreement will be made on production cuts.

Canadian employment increased by 94,000 jobs in November, according to a report from Statistics Canada this morning. Economists had expected an increase of just 11,000 jobs. The Canadian unemployment rate also dropped to 5.6 percent.

Markets in Europe are trading in the green Friday, following 3 days of losses.

After hovering closed to the unchanged line in early trade Friday, markets on Wall Street have since turned lower. Traders were disappointed by the weaker than expected U.S. jobs report this morning.

The benchmark S&P/TSX Composite Index is up 25.45 points or 0.17 percent at 14,962.45.

On Thursday, the index closed down by 245.64 points or 1.62 percent, at 14,937.00. The index scaled an intraday high of 14,972.66 and a low of 14,773.86.

The Energy Index is rising 3.99 percent. Cenovus Energy (CVE.TO) is increasing 4.01 percent and Crescent Point Energy (CPG.TO) is gaining 6.99 percent. Encana (ECA.TO) is up 2.67 percent and Suncor Energy (SU.TO) is climbing 4.53 percent. Imperial Oil (IMO.TO) is advancing 0.55 percent and Enbridge (ENB.TO) is adding 0.23 percent. Canadian Natural Resources (CNQ.TO) is rallying 4.97 percent and Husky Energy (HSE.TO) is higher by 4.34 percent.

The Capped Materials Index is up 0.94 percent. Agnico Eagle Mines (AEM.TO) is advancing 1.89 percent and Franco-Nevada (FNV.TO) is gaining 0.95 percent.

The Gold Index is increasing 0.58 percent. Barrick Gold (ABX.TO) is higher by 1.51 percent and Kinross Gold (K.TO) is advancing 1.59 percent. Eldorado Gold (ELD.TO) is gaining 2.63 percent and B2Gold (BTO.TO) is rising 2.07 percent. IAMGOLD (IMG.TO) is up 0.94 percent and Yamana Gold (YRI.TO) is adding 0.68 percent.

The Capped Telecommunication Services Index is up 0.38 percent. TELUS (T.TO) is gaining 0.46 percent and Rogers Communications (RCI-B.TO) is rising 0.32 percent.

The Capped Information Technology Index is losing 1.17 percent. Constellation Software (CSU.TO) falling 1.76 percent and Descartes Systems Group (DSG.TO) is down 0.22 percent. BlackBerry (BB.TO) is weakening 1.18 percent and Sierra Wireless (SW.TO) is declining 1.26 percent.

On the economic front, Eurozone's economic growth rate halved in the third quarter as estimated initially, latest figures from the Eurostat showed on Friday. Gross domestic product grew 0.2 percent from the second quarter, when it increased 0.4 percent.

Germany's industrial production in October unexpectedly dropped for the first time in three months, suggesting that manufacturing is yet to recover from a slowdown despite some improvement in demand.

Industrial production dropped 0.5 percent from September, when they grew 0.1 percent, revised from 0.2 percent, preliminary figures from the Federal Statistical Office showed on Friday. Economists had forecast a 0.3 percent increase.

UK house price inflation slowed more-than-expected in November to its lowest level since December 2012, figures the Lloyds Banking Group subsidiary Halifax showed on Friday. The house price index rose 0.3 percent year-on-year in the three months to November, after a 1.5 percent increase in the three months to October. Economists had expected 1 percent growth.

After reporting strong job growth in the previous month, the Labor Department released a report Friday morning showing employment in the U.S. increased by much less than expected in the month of November.

The report said non-farm payroll employment rose by 155,000 jobs in November after surging up by a downwardly revised 237,000 jobs in October. Economists had expected employment to climb by about 200,000 jobs compared to the jump of 250,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate in November remained unchanged for the second straight month at 3.7 percent, holding at its lowest level since hitting 3.5 percent in December of 1969.

A preliminary report released by the University of Michigan on Friday showed U.S. consumer sentiment has held steady in the month of December. The report said the consumer sentiment index for December came in at 97.5, unchanged from the final November reading. Economists had expected the index to dip to 97.0.

Wholesale inventories in the U.S. increased by slightly more than anticipated in the month of October, according to a report released by the Commerce Department on Friday. The Commerce Department said wholesale inventories advanced by 0.8 percent in October after climbing by an upwardly revised 0.7 percent in September.

Economists had expected inventories to rise by 0.7 percent compared to the 0.4 percent increase originally reported for the previous month.

In commodities, crude oil futures for January delivery are up 2.19 or 4.25 percent at $53.68 a barrel.

Natural gas for January is up 0.112 or 2.59 percent at $4.439 per million btu.

Gold futures for February are up 6.50 or 0.52 percent at $1,250.10 an ounce.

Silver for January is up 0.165 or 1.14 percent at $14.585 an ounce.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT