Canadian Market Modestly Lower After Jobs Data

RTTNews | 152 days ago
Canadian Market Modestly Lower After Jobs Data

(RTTNews) - The Canadian market is down in negative territory on Friday after data showing a drop in the nation's unemployment rate dimmed prospects of a rate cut by the Bank of Canada in March.

The benchmark S&P/TSX Composite Index is down 82.22 points or 0.32% at 25,452.21 a few minutes past noon.

Healthcare and communications stocks are among the major losers. Real estate and technology stocks are also exhibiting some weakness. Energy stocks finding support, and a few stocks from materials and consumer staples sectors have also edged higher.

Data from Statistics Canada showed employment in Canada advanced by 76,000 in January 2025, marking the sixth consecutive monthly increase. In December 2024, the economy had added 91,000 jobs.

The unemployment rate in Canada fell to 6.6% in January 2025 from 6.7% in the previous month. That was less than the forecast for a 6.8% drop.

Canopy Growth Corp (WEED.TO) shares are plunging nearly 25%. Canopy Growth Corp reported a net loss of $122 million, or $1.11 per share, for the third-quarter, compared with net loss of $217 million, or $2.62 per share, in the prior year period.

Tilray Inc (TLRY.TO) is down nearly 6%. Bausch Health Companies (BHC.TO) is declining 1.4%.

BCE Inc (BCE.TO), down 3.7%, is the biggest loser in the Communications Capped Index. Cogeco Communications (CCA.TO) and Telus Corp (T.TO) are down 1.1% and 1.2%, respectively.

Energy stock Arc Resources (ARX.TO) is rising more than 6%. Paramount Resources (POU.TO) and Tourmaline Oil Corp (TOU.TO) are gaining 2.2% and 2.1%, respectively. Baytex Energy (BTE.TO), Parex Resources (PXT.TO), Birchcliff Energy (BIR.TO), Advantage Oil & Gas (AAV.TO), Prairiesky Royalty (PSK.TO) and Imperial Oil (IMO.TO) are up 1 to 2%.

In U.S. economic news, a report from the University of Michigan showed consumer sentiment has unexpectedly deteriorated in February amid a surge by year-ahead inflation expectations.

The University of Michigan said its consumer sentiment index slumped to 67.8 in February after rising to 71.1 in January. Economists had expected the index to inch up to 72.0.

Data from the Labor Department said non-farm payroll employment rose by 143,000 jobs in January compared to economist estimates for an increase of about 170,000 jobs.

Meanwhile, employment in December and November surged by upwardly revised 307,000 jobs and 261,000 jobs, respectively, reflecting a net upward revision of 100,000 jobs.

The Labor Department also said the unemployment rate dipped to 4% in January from 4.1% in December. The unemployment rate was expected to remain unchanged.

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