Canadian Market Stays Firmly Positive Despite Paring Some Gains

(RTTNews) - After opening with a strong positive gap Friday morning, and moving further up north, the Canadian market gave up most of its gains and was modestly up in early afternoon trade.

The sharp uptick in early trades came after data showing an increase in U.S. unemployment rate triggered hopes that the Federal Reserve will be less aggressive with regard to interest rate hike in its next meeting.

Investors also digested Canadian jobs data. According to Statistics Canada's report, the Canadian economy added 108,300 jobs in October, the most since February, and much above the expectations of an addition of 10,000 jobs. Full-time employment in Canada rose by 119,300 jobs in October, the most since May.

The unemployment rate in Canada stood at 5.2% in October, unchanged from the prior month.

Data from the Labor Department showed non-farm payroll employment in the U.S. jumped by 261,000 jobs in October after surging by an upwardly revised 315,000 jobs in September. Economists had expected employment to climb by about 200,000 jobs compared to the addition of 263,000 jobs originally reported for the previous month.

Meanwhile, the unemployment rate rose to 3.7% in October from 3.5% in September. The unemployment rate was expected to inch up to 3.6%.

Materials shares are up sharply, tracking firm bullion prices. Financials shares are the other prominent gainers. Technology stocks are down with sharp losses. Healthcare stocks are also weak.

The benchmark S&P/TSX Composite Index, which climbed to 19,580.08, gaining nearly 340 points in the procee, was up 98.35 or 0.51% at 19,339.57 a little while ago.

Yamana Gold Inc (YRI.TO) shares are up more than 15% after Pan American Silver Corp. (PAAS.TO) and Agnico Eagle Limited (AEM.TO) delivered a definitive binding offer to the board of Yamana Gold Inc., pursuant to which Pan American would Yamana, and Yamana would sell certain subsidiaries and partnerships which hold Yamana's interests in its Canadian assets to Agnico Eagle. The aggregate consideration of the deal is $4.8 billion, or $5.02 per Yamana share.

Pan American Silver Corp is down by about 8%, while Agnico Eagle Mine shares are gaining 1.5%.

Magna International Inc. (MG.TO,MGA) reported that its third-quarter adjusted earnings per share increased to $1.07 from $0.56, prior year. Adjusted EBIT increased to $441 million compared to $229 million. The stock is up 0.75%.

Enbridge Inc. (ENB.TO,ENB) reported third quarter adjusted earnings per share of C$0.67 compared to C$0.59, prior year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of C$0.64, for the quarter. The company reaffirmed its 2022 financial guidance, which includes adjusted EBITDA between C$15.0 and C$15.6 billion and DCF per share between C$5.20 to C$5.50. Enbridge shares are gaining about 0.6%.

Telus International (Cda) Inc. (TIXT.TO) shares are down 4.7%. The company reported net income of $551 million for the quarter ended September 30, 2022, compared with net income of $358 million in the year-ago quarter.

Snc-Lavalin Inc (SNC.TO) reported third-quarter net income of $44.7 million, or $0.25 per diluted share, compared to net income of $18.6 million, or $0.11 per diluted share in the corresponding quarter of the previous financial year. The stock is down nearly 2%.