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[July 11, 2014]
TSX flat to close week
(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Jobs data weighs on loonie WEEKLY MARKET WRAP UP<iframe></iframe> The Toronto stock market was barely changed Friday amid a disappointing employment report that showed the Canadian economy unexpectedly lost jobs last month The S&P/TSX composite index inched up 11.02 points to close out the day and week at 15,125.50 The Canadian dollar plummeted 0.72 cents to 93.18 cents U.S.
Gold stocks provided much of whatever strength the market had, with Allied-Nevada hiking 27 cents, or 6.9%, to $4.18, and Barrick Gold up 95 cents, or 4.8%, to $20.71.
Global base metals were stronger, too, climbing on the shoulders of HudBay Minerals, up 26 cents, or 2.4%, to $11.02, and Capstone Mining, up five cents, or 1.7%, to $3.08.
A sour note was struck by the energy industry, with Imperial Oil down 45 cents, to $56.58, and Suncor off 74 cents to $44.24.
Worries about soft growth will keep the Bank of Canada from hiking interest rates until late next year, although rising prices are expected to make it temper concerns about low inflation in its policy statement next week. That word from a recent Reuters poll.
Further on the economic beat, Statistics Canada reported this morning that Canadian economy unexpectedly shed 9,400 jobs in June and the unemployment rate rose to 7.1% from 7.0% in May, underlining how employment growth has stalled despite a recovery in the United States.
ON BAYSTREET The TSX Venture Exchange eked up 0.08 points to 1,022.93.
All but three of the 14 Toronto subgroups were higher, with gold up 3.1%, materials stronger by 1.8%, and global base metals ahead 1%.
The three laggards were energy, down 1.5%, while consumer staples and financials were each ailing 0.1%.
ON WALLSTREET Stocks inched higher in the final hour of trading Friday, but the S&P 500 is still on track for its worst week since April.
The Dow Jones Industrials gained 28.74 points to 16,943.81 The S&P 500 recovered 2.89 points to 1,967.57, and the NASDAQ composite pulled ahead 19.29 points to 4,415.59.
The S&P 500 is on track to end the week down nearly 1%, the biggest weekly decline since April.
Shares of Wells Fargo were under pressure after the nation's largest bank by market cap reported earnings that were in line with analysts' expectations.
Wells Fargo is the first major U.S. bank to report second quarter results. Citibank, JPMorgan, Goldman Sachs, Bank of America and Morgan Stanley all open their books next week.
Imperial Tobacco, a global tobacco company based in England, is in talks to buy certain brands from Reynolds American and Lorillard. The deal would combine two of the largest U.S. cigarette brands into a company with a potential market value of $56 billion, according to Daniel Sugarman, a market strategist at ETX Capital in London.
Shares of MGIC Investment were halted after falling more than 10% in heavy volume. Other mortgage insurance companies were down sharply on concerns that new regulations could force them to raise capital. Genworth Financial and Radian Group both sank as well.
Amazon has asked the Federal Aviation Administration for permission to conduct tests of its planned drone delivery service near its headquarters in Seattle. The stock was up 4%, though it's still down sharply for the year.
Shares of Digital Alley soared after the maker of video surveillance equipment said the Patent and Trademark Office had approved its initial patent on technology used by law enforcement officers to connect "body cameras and in-car video systems." Trading in shares of Cynk Technology, which have soared 25,000% since mid-June, was halted Friday by the Securities and Exchange Commission. The SEC said the suspension was due to concerns about "the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK's common stock." Major European exchanges regained composure Friday, bouncing back after worries over a Portuguese bank eased.
Shares in Banco Espirito Santo were suspended on Thursday, but not before they slumped 17%, taking losses for the year to 46%. Banco Esperito resumed trading Friday and said it has sufficient capital to cover any losses. The stock stabilized Friday after regulators announced a temporary ban on short selling in the bank's shares.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.52% from Thursday's 2.53%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.19 to $100.74 U.S. a barrel.
Gold prices sank 30 cents to $1,338.90 U.S. an ounce.
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