Canadian Market Up Firmly In Positive Territory After Jobs Data

(RTTNews) - The Canadian market is up firmly in positive territory Friday morning with stocks surging higher with weak Canadian and U.S. jobs data raising hopes the Bank of Canada and the Federal Reserve will soon end their interest-rate hiking cycle.

Investors are also reacting to a slew of earnings announcements.

Utilities, energy, financials, materials and industrials shares are among the prominent gainers. Shares from the rest of the sectors are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is up 201.08 points or about 1% at 20,321.82.

Data from Statistics Canada said the Canadian economy shed 6,400 jobs in July, after seeing an addition of 59,900 jobs in June. Economists had expected the economy to add 21,100 jobs in July.

The data from Statistics Canada also showed that the unemployment rate in Canada edged higher for the third straight month in July, rising to 5.5%, after a 5.4% increase in the previous month.

Meanwhile, average hourly earnings for permanent employees in Canada increased by 5% yoy to $34.6 in July 2023, accelerating from the 3.9% growth in the previous month.

According to a report from the Ivey Business School, the Ivey Purchasing Mangers Index in Canada fell to 48.6 in July from 50.2 in the prior month.

In U.S. economic news, data from the Labor Department said non-farm payroll employment climbed by 187,000 jobs in July after rising by a downwardly revised by 185,000 jobs in June. Economists had expected employment to jump by 200,000 jobs compared to the addition of 209,000 jobs originally reported for the previous month.

The data also said the unemployment rate edged down to 3.5% in July from 3.6% in June. Economists had expected the unemployment rate to remain unchanged.

Enbridge Inc (ENB.TO) reported Second quarter GAAP earnings of $1.8 billion or $0.91 per common share, compared with GAAP earnings of $0.5 billion or $0.22 per common share a year ago. The stock is up by about 0.8%.

Telus Corp (T.TO) is down marginally after reporting a net income of $196 million for the second quarter of this financial year, compared to net income of $498 million in the year-ago quarter.

Telus International (TIXT.TO) are climbing nearly 7%. The company reported a net loss of $7 million for the second quarter, compared with net income of $56 million in the same quarter last year.

TransAlta Corporation (TA.TO) shares are up 3% on strong results. The company reported net earnings of $62 million for the second quarter of this year, compared with net loss of $80 million in the second quarter of the previous financial year.

Magna International (MG.TO) is down 3.7% despite reporting a profit in the second quarter. The company reported net earnings of $339 million or $1.18 per share for the second quarter, compared to a loss of $156 million or $0.54 loss per share in the year-aqo quarter. Adjusted earnings were $1.50 per share, compared to $0.83 per share a year ago.