TSX Ends Higher On Upbeat U.S. Employment Data

(RTTNews) - Canadian stocks snapped a four-day loss to end higher on Friday, tracking rising global equity markets after some upbeat economic data from the U.S. with unemployment rate at its lowest level in over six years.

Global markets rallied after a U.S. Labor Department report showed the unemployment rate to have dropped to 5.9 percent in September from 6.1 percent in August as employment in September rose more than expected. Economists expected the rate to hold at 6.1 percent. The decline has taken the unemployment rate to its lowest level since the 5.8 percent recorded in July 2008.

However, any enthusiasm for the jobs growth will be tempered by renewed expectations the Federal Reserve will hike interest rates ahead of schedule, perhaps by next Spring.

The benchmark S&P/TSX Composite Index closed Thursday at 14,789.78, up 29.14 points or 0.20 percent. The index scaled a intraday high of 14,875.01 and a low of 14,763.66.

On Thursday, Canadian stocks ended lower, in line with some largely declining worldwide equity markets amid concerns over the global economy.

Crude oil plunged to end below the $90-dollar mark on Friday, after the dollar trended sharply higher on some upbeat jobs data from the U.S., with unemployment rate at its lowest level in over six years even as employment rose more than expected in September.

The Energy Index dropped 0.53 percent, although U.S. crude oil futures for November delivery plunging $1.27 or 1.4 percent to close at $89.74 on the Nymex Friday.

Among energy stocks, Encana Corp. (ECA.TO) fell 0.71 percent, Cenovus Energy Inc. (CVE.TO) fell 0.58 percent, and Canadian Natural Resources Limited (CNQ.TO) surrendered 0.86 percent. Suncor Energy Inc. (SU.TO) fell 0.47 percent, while Enbridge Inc. (ENB.TO) added 0.23 percent.

The Financial Index gained 0.41 percent, with Toronto-Dominion Bank (TD.TO) up 0.31 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.65 percent, Royal Bank of Canada (RY.TO) added 0.44 percent, Bank of Nova Scotia (BNS.TO) fell 0.55 percent, and Bank of Montreal (BMO.TO) up 0.33 percent, and National Bank of Canada (NA.TO) fell 0.12 percent.

Gold futures ended sharply lower, with some upbeat jobs data from the U.S. spiking the dollar higher, as unemployment rate dropped to its lowest level in over six years even as employment rose more than expected in September.

The Global Gold Index plunging 3.72 percent, with gold for December delivery plummeted $22.20 or 1.8 percent to settle at $1,192.90 an ounce on the New York Mercantile Exchange. Friday

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 3.16 percent, Yamana Gold Inc. (YRI.TO) dived 4.96 percent, Eldorado Gold Corp. (ELD.TO) fell 1.77 percent, and Goldcorp Inc. (G.TO) down 3.49 percent. B2Gold Corp. (BTO.TO) dropped 7.17 percent and completed its takeover of Papillon Resources Limited.

The Capped Materials Index plummeted 2.48 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 3.34 percent.

The Diversified Metals & Mining Index fell 1.37 percent, with First Quantum Minerals Ltd. (FM.TO) slipping 1.23 percent, Lundin Mining Corp. (LUN.TO) down 1.29 percent, and Teck Resources Limited (TCK.B.TO) diving 2.92 percent.

The Capped Industrials Index gained 1.41 percent, with Bombardier Inc. (BBD.B.TO) adding 1.34 percent and SNC-Lavalin Group Inc. (SNC.TO) moving up 0.86 percent.

The Information Technology Index added 0.86 percent, with smartphone maker BlackBerry Limited (BB.TO) diving 4.95 percent.

The Healthcare Index fell 1.45 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) gaining 3.26 percent.

The Telecom Index added 0.78 percent with Rogers Communications Inc. (RCI.B.TO) gained 0.74 percent, and TELUS Corp. (T.TO) gained 0.28 percent.

In corporate news, gold producer IAMGOLD Corp. (IMG.TO) gained 3.95 percent after agreeing to sell its Niobec mine, one of the world's three niobium producers, to a group of companies led by Magris Resources Inc., for $530 million.

Sears Canada's (SCC.TO) edged up 0.9 percent. The company said it will slash its ownership of Sears Canada to just 12 percent from 51 percent. Shares were flat.

In economic news from the U.S., a Labor Department report showed Friday the unemployment rate in the country unexpectedly fell to its lowest level in over six years, with employment increasing much more than anticipated in September.

The report said non-farm payroll employment jumped by 248,000 jobs in September following an upwardly revised increase of 180,000 jobs in August. Economists expected employment to increase by about 215,000 jobs compared to the addition of 142,000 jobs originally reported for the previous month.

Along with the upward revision to the August job growth, the report said employment in July climbed by 243,000 jobs versus the previously reported increase of 212,000 jobs.

Meanwhile, an Institute for Supply Management report on Friday showed a modest slowdown in the pace of growth in the sector in September, after reporting an unexpected acceleration in the pace of growth in the U.S. service sector the previous month.

The ISM said its non-manufacturing index dipped to 58.6 in September from 59.6 in August, although a reading above 50 indicates continued growth in the service sector. Economists expected the index to drop to 58.5.

Also on a positive note, U.S. trade deficit unexpectedly narrowed in August, with the value of exports increasing slightly more than the value of imports, a Commerce Department report revealed Friday. U.S. trade deficit narrowed to $40.1 billion in August from a revised $40.3 billion in July. Economists expected the deficit to widen to $40.8 billion from the $40.5 billion originally reported for the previous month.

In Europe, the Markit/CIPS UK Services Purchasing Managers' Index dropped to 58.7 from 60.5 in August, results of a survey showed Friday. Economists had forecast a smaller decline in the index to 59.