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TSX Falls on Job Numbers

Published 2024-07-05, 08:16 a/m
© Reuters TSX Falls on Job Numbers
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Baystreet.ca - Canada's main stock index was pulled down by energy shares on Friday, while fresh U.S. employment data fueled hopes for a September rate cut by the Federal Reserve.

The TSX Composite Index stayed negative 71.81 points to move into noon hour Friday at 22,172.21.

The Canadian dollar dipped 0.11 cents to 73.34 cents U.S.

In corporate news, the federal government approved Switzerland-based miner Glencore (LON:GLEN)'s $6.93-billion takeover of Teck Resources (TSX:TECKa)' steelmaking coal unit with strict conditions to preserve jobs. Teck shares gained 89 cents, or 1.3%, to $69.84.

On the economic front, Statistics Canada the economy lost 1,400 jobs in June, boosting the unemployment rate 0.2 percentage points to 6.4%. Elsewhere, the seasonally-adjusted IVEY PMI leaped to 62.5 in June to 52.0 from 52.0 in May and 50.2 in June 2023. A reading above 50 indicates an increase in activity.

ON BAYSTREET

The TSX Venture Exchange regained 3.94 points to 583.82.

Seven of the 12 TSX subgroups had moved into positive territory, led by gold, up 2.6%, materials, ahead 1.3%, and health-care, haler by 0.7%.

The five laggards were weighed most by energy, falling 1.8%, while industrials backpedaled 0.8%, and financials were poorer by 0.5%.

ON WALLSTREET

The S&P 500 rose to a new high on Friday, putting the broad-market index on track for yet another weekly gain during the holiday-shortened trading week. The tech-heavy NASDAQ Composite also hit a new high.

The Dow Jones Industrials had climbed to within 1.69 points of breakeven by afternoon Friday at 39,306.31.

The much-broader index had turned positive 15.47 points to 5,552.49.

The NASDAQ popped 126.69 points to 18,315.

All three major indexes are on track to finish the week in the green. The NASDAQ has taken on more than 3.2%, and the S&P 500 has climbed more than 1.6% in the week. The Dow has lagged this week, adding around 0.5%. Markets were closed Thursday for Independence Day.

The S&P 500's rally this year has grown to 16% with the benchmark on pace for its fourth positive week in the last five as investors bet any economic weakness later this year will be met with a Federal Reserve rate cut. The NASDAQ’s year-to-date gain is 22%.

Widely monitored labour data released Friday morning reflected a 206,000 increase in non-farm payroll adds in June and a slight uptick in the unemployment rate, which rose to 4.1%. Economists expected the jobless rate to remain steady at 4%.

Tesla (NASDAQ:TSLA) rose 1%, adding to its whopping week-to-date gain of more than 25%, while Apple shares (NASDAQ:AAPL) rose 1.5% to a new all-time high. Nvidia (NASDAQ:NVDA) lagged following a rare Wall Street downgrade, which cited limited upside for the chipmaker. The stock is still up 2.6% for the week.

Prices for the 10-year Treasury jumped, lowering yields to 4.28% from Wednesday’s 4.35%. Treasury prices and yields move in opposite directions.

Oil prices gained 36 cents at $84.24 U.S. a barrel.

Gold prices bounced $23.20 to $2,392.60

This content was originally published on Baystreet.ca

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