Equity markets in Canada’s largest centre rose on Friday as higher oil prices lifted energy stocks, while data showed the economy added far fewer jobs than expected in July.
The TSX Composite index gained 50.89 points to kick off the week’s last session at 20,426.37.
The Canadian dollar dwindled 0.28 cents to 79.72 cents U.S.
CIBC raised the target price on Constellation Software to $2,200.00 from $2,000.00. Constellation shares dumped $15.53 to start the day at $2,023.28.
National Bank of Canada raised the target price on goeasy to $196.00 from $167.00. goeasy shares topped $9.73, or 5.7%, to $181.32.
ATB Capital Markets raised the target price on Lightspeed POS to $200.00 from $150.00. Lightspeed shares raced $1.87, or 1.6%, to $121.76.
On the economic slate, Statistics Canada reported the economy created 94,000 jobs during July, adding to an increase of 231,000 in June, July’s unemployment rate falling to 7.4% from 7.8%.
Western University’s IVEY School says its Purchasing Managers Index registered at 56.4 in July, down considerable from June’s 71.9, and far off the 68.5 reading in July 2020.
The TSX Venture Exchange lost 2.02 points to 922.61.
Seven of the 12 TSX subgroups were higher by Thursday’s close, as health-care stocks climbed 3.4%, energy improved 1.4%, and utilities were 0.8% to the good.
The five laggards were weighed most by gold, off 2.27%, materials, backtracking 1.4%, and consumer staples, retreating 0.3%.
Stocks tied to the economic recovery rose after a stronger-than-expected jobs report on Friday, sending two key market averages to all-time highs.
The Dow Jones Industrials spiked 128.12 points to 35,192.37, and hit an intraday record high.
The S&P 500 jumped 3.36 points to 4,432.46, for its own intraday all-time high,
The NASDAQ lost 46.53 points to 14,848.58.
Friday’s jobs report showed that the U.S. economy added 943,000 jobs in July, according to the Labor Department. Economists expected the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. The unemployment rate dropped to 5.4%, below the estimate of 5.7%.
Bank shares led the gains post-jobs report as rates shot higher, increasing their profitability prospects. JPMorgan, Bank of America and Wells Fargo all gained more than 1% in early trading. Industrials, retailers and energy stocks also gained as the jobs report soothed concerns about the economic comeback.
On the flip side, tech shares declined as the jump in rates caused investors to take profits in the names and move back into stocks that could benefit more from faster economic growth. Amazon, Apple and Salesforce were trading down slightly in early trading. Higher rates can also expose tech stock lofty valuations.
Defensive stocks, such as utilities and health care companies, also slumped after the report.
Prices for 10-Year Treasurys fell hard, raising yields to 1.29% from Thursday’s 1.22%. Treasury prices and yields move in opposite directions.
Oil prices added on four cents to $69.13 U.S. a barrel.
Gold prices slid $39.30 to $1,768.60 U.S. an ounce.