Stocks Break Out Of Slumber Amid Jobs Momentum -- Canadian Commentary

(RTTNews) - Canadian stocks edged higher Friday, led by financials amid signs the U.S. government may walk back regulations on the banking industry.

The S&P/TSX Composite Index was up 77.28 points, or 0.50 percent, to 15,476.39, with gauges of most sectors in the green.

Encouraging economic news also lifted spirits, but investors remained cautious about geopolitical tensions and Donald Trump's bold policy changes.

The U.S. generated 227,000 new jobs in January to mark the biggest gain in four months, the Labor Department said this morning. The unemployment rate rose to 4.8% as more Americans were looking for work.

Canada added 229,000 jobs in 2016, according to revised data from Statistics Canada. That was up from the previously reported annual gain of 214,100.

Financials were up 0.8 percent. Trump signed an order calling for a review of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in 2010 in an effort to prevent another financial meltdown.

Hudson's Bay (HBC.TO) shares rose 4 percent after the Wall Street Journal reported the Saks Fifth Avenue parent is in talks to acquire Macy's.

Immunovaccine Inc. (IMV.TO), a clinical stage vaccine and immunotherapy company, today announced Pierre Labbé will be Chief Financial Officer. Shared jumped 7 percent.

Energy stocks were flat as March U.S. West Texas Intermediate crude futures settled 29 cents higher at $53.83 a barrel. The contract was up about 1 percent for the week.

Traders kept a close eye on saber-rattling between the U.S. and Iran.

In retaliation for a recent ballistic missile test, Trump imposed a new wave of sanctions against Iran.

"Iran is playing with fire - they don't appreciate how 'kind' President Obama was to them. Not me!" Trump said in a post on Twitter early Friday.

Meanwhile, U.S. energy companies continued to ramp up production.

Baker Hughes said the U.S. rig count jumped for the 13th week in 14. Drillers added 17 rigs to 583, the most since October 2015.