Canadian Stocks Falter to Close Week



Canada’s main stock index tumbled to end the week with materials shares leading the sectoral losses, after stronger-than-expected jobs data in the United States pushed investors to slash bets on a September rate cut by the U.S. Federal Reserve.

The S&P/TSX Composite Index fell 222.1 points, or 1%, to close Friday at 22,007. On the week, the index collapsed 262 points, or 1.18%.

The Canadian dollar folded 0.47 cents to 72.69 cents U.S.

Gold proved the biggest weight on the market Friday, with Eldorado Gold shedding $1.57, or 7%, to $20.79, while NovaGold dipped 40 cents, or 7.2%, to $5.13.

Materials was also a downer, with Pan American Silver descending $2.10, or 7.1%, to $27.43, while First Majestic Silver handed over 64 cents, or 6.8%, to $8.74.

In real-estate, units of RioCan REIT dipped 56 cents, or 3.2%, to $17.06, while Boardwalk REIT fell $2.12, or 2.9%, to $70.04.

Consumer staples did their best to right the ship, as Saputo shares soared $2.04, or 7.3%, to $29.99, while North West Company took on $2.71, or 6.7%, to $43.53.

In tech issues, Quarterhill took on five cents, or 2.9%, to $1.76, while Docebo marched $1.27, or 2.5%, to $52.25.

Canada’s biggest oil sands producers extended their support for a tax on carbon but see a proposed federal oil and gas emissions cap as “unnecessary legislation”, the CEOs of these companies told lawmakers in Ottawa on Thursday.

On the economic front, Statistics Canada reports the economy created 27,000 jobs in May, while the unemployment rate moved up to 6.2% from 6.1%.

ON BAYSTREET

The TSX Venture Exchange dipped 13.73 points, or 2.3%, to 588.25, for a decline on the week of 22.6 points, or 3.7%.

All but two of the 12 subgroups were negative on the day, with gold dulling in price 5.7%, materials off 4.3%, and real-estate, falling 1.6%.

The pair of gainers were consumer staples, up 0.4%, and information technology, up 0.3%.

ON WALLSTREET

All U.S. markets lose some steam at the close on Friday, following a surprising jobs report poured cold water on hopes for an interest rate cut.

The Dow Jones Industrials turned lower 87.31 points to 38,798.86.

The S&P 500 declined 5.95 points to 5,347.01.

The NASDAQ lost 39.99 points to 17,165.48.

All three of the major averages are on pace for a winning week. The Dow enjoyed a 0.7% gain, while the S&P 500 was higher by 1.5% and the NASDAQ was on pace for a 2.5% advance.

Chipmaker and artificial intelligence darling Nvidia slipped roughly 0.3% off a record high set earlier in the week. Technology stocks including Meta Platforms fell 0.3%, to $492.58, and Alphabet traded 1.3% lower to $174.36

Non-farm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April’s 175,000. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago. However, even with the job gains the unemployment rate ticked higher to 4%.

Investors had been hoping for weak jobs figures that would give the Fed the green light to cut rates, but not so dim as to indicate a recession.

Prices for the 10-year Treasury fell sharply, raising yields to 4.43% from Thursday’s 4.28%. Treasury prices and yields move in opposite directions.

Oil prices fell 23 cents to $75.32 U.S. a barrel.

Gold prices gave way $81.70 to $2,309.20



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