By Ketki Saxena
Investing.com --
The S&P/TSX rallied this morning, tracking Wall Street higher following US jobs data that, despite beating estimates on jobs created, showed rising unemployment and other indicators of a slowing economy.
The data tempered bets on rate hikes from the Fed, expectations for which had risen sharply following hawkish speak from Fed Chair Jerome Powell following the central bank’s 75 bps move earlier this week.
The commodity-heavy Canadian index was also supported by a rally in crude, as G7 Nations agreed to a fixed price cap (rather than a floating rate) on Russian oil. The EU Ban on Russian crude is due to take effect from Dec 5.
Crude prices were also supported by statements from a former Chinese disease control official that the country will soon make a significant change to its zero-covid policy (even as covid cases once again soar to their highest level in months).
The Biggest Stories on Bay Street
Pan American Silver Corp (TSX:PAAS). and Agnico Eagle Mines (TSX:AEM) Ltd. have offered to buy Yamana Gold (TSX:YRI) Inc. for US$4.8 billion, the companies said Friday in a statement. The deal comes as Gold Fields Ltd. and Yamana have been working to combine in what would be the largest bullion deal this year.
Enbridge (TSX:ENB) reported adjusted earnings of $1.4-billion, or 67 Canadian cents per share, in the three months to Sept. 30, from C$1.2-billion, or 59 Canadian cents per share, a year earlier. Revenue was at $305.3 million for the quarter up from $264.1 million a year earlier.
Telus (TSX:T) says its profit amounted to 37 cents per share for the quarter that ended Sept. 30, up from 25 cents per share a year ago. Operating revenue and other income rose to $4.67 billion compared with $4.25 billion in the same quarter last year. Telus says its profit amounted to 37 cents per share for the quarter, up from 25 cents per share a year ago. Telus also raised its quarterly dividend.
Fairfax Financial (TSX:FFH) Holdings Ltd. posted a net loss of US$75.1 million in Q3, down from earnings of $462.4 million this time last year, working out to a loss of $3.65 per diluted share compared to $16.22 in earnings per diluted share the year before. Revenues for the quarter were $6.84 billion, up from $6.71 billion last year.
RioCan Real Estate Investment Trust reported net income in the third quarter of $3.2 million, down from $137.6 million the year before. Revenue totalled $305.3 million, up from $264.1 million a year earlier.
Canadian Stocks Moving Markets This Morning
Top Gainers:
- Yamana Gold
- Hudbay Minerals
- Capstone Mining
Biggest Losers:
- OpenText
- Brookfield Business
- Parex Resources (TSX:PXT)
In Canadian Economics
Statistics Canada reported that employment in the country rose by 108,000 (+0.6%) in October, while the unemployment rate remained at 5.2%. Average hourly wages rose 5.6%, while total hours worked increased 0.7%.
The federal government is imposing a 2% on share buybacks, designed to incentivize Canadian businesses to reinvest capital back into operations rather than into dividends and other pro-shareholder measures. The new tax will come into effect at the start of 2024.