Baystreet.ca - Equities in Canada’s largest market opened lower Friday after softer-than-expected jobs reading in the United States added to recession fears, while higher gold prices lifted mining stocks.
The TSX Composite Index hurtled lower 332.89 points, or 1.5%, to open the last session before a long weekend at 22,390.32.
The Canadian dollar progressed 0.19 cents at 72.23 cents U.S.
In corporate news, resources companies like pipeline operator Enbridge (TSX:ENB) and oil producer Imperial Oil (TSX:IMO) are set to report their quarterly figures before the opening bell on Friday. Enbridge shares lost 27 cents to $51.88, while shares in IMO faded $1.33, or 1.4%, to $94.63.
Magna International (TSX:MG) missed analysts' estimates for second-quarter results, hurt by production being stopped for certain vehicles and lower number of automobiles it assembled. Magna shares sagged $1.95, or 3.3%, to $57.68.
Markets in Toronto will be closed Monday for Civic Day.
ON BAYSTREET
The TSX Venture Exchange fell 7.77 points, or 1.4%, to 564.87.
All but three of the 12 TSX subgroups were lower, weighed most by information technology, down 3.7%, energy, down 2.6%, and industrials, bowing 1.7%
The three gainers were gold, up 1%, while utilities improved 0.4%, and materials picked up 0.1%.
ON WALLSTREET
Stocks slid Friday as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.
The Dow Jones Industrials jettisoned 688.54 points, or 1.7%, to 39,659.43.
The S&P 500 index slid 133.76 points, or 2.5%, to 5,312.92.
The NASDAQ hesitated 553.82 points, or 3.2%, to 16,640.33.
Amazon (NASDAQ:AMZN) led the losses, sliding 9% after missing the Street’s estimates on second-quarter revenue and issuing a disappointing forecast. Intel (NASDAQ:INTC) cratered 26% after announcing weak guidance and layoffs. Apple shares (NASDAQ:AAPL) inched lower despite the iPhone maker posting a fiscal third-quarter earnings beat as most tech stocks were hit hard following the weak jobs figures.
Nvidia (NASDAQ:NVDA) lost 4.5% following a 6% loss a day before.
Stocks with the most to lose from a recession also declined. Bank of America (NYSE:BAC) lost 3%, and Caterpillar (NYSE:CAT) shares were also lower. The 10-year Treasury yield fell to its lowest since February as investors flooded into bonds for safety.
Friday’s stock pullback would added to a steep selloff from the previous session. The Dow and S&P 500 each fell more than 1% on Thursday, while the NASDAQ slid 2.3%. Those declines sent ripples around the world, with the Japanese Nikkei losing 5.8% overnight.
July job growth in the U.S. slowed more than expected, while the employment rate rose to the highest since October 2021. Non-farm payrolls grew by just 114,000 last month, the Labor Department reported, a slowing from 179,000 jobs added in June and below the 185,000 expected by economists polled by Dow Jones. The unemployment rate increased to 4.3%.
Prices for the 10-year Treasury popped, with yields falling to 3.81% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices slumped $2.53 at $73.78 U.S. a barrel.
Gold prices hiked $32.10 to $2,512.90.