TSX Ends Lower On U.S., Canadian Jobs Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad lower on Friday, after data from the U.S. showed employment to have increased less than expected in August, with investors also mulling a report from Statistics Canada that showed unemployment in Canada remained unchanged at 7.0 percent in August.

In some disappointing economic news from the U.S., employment in the country increased much less than expected in August, a report from the Labor Department showed Friday. Nevertheless, the unemployment rate edged down in August from the previous month, due largely to a decline in the size of the labor force.

Although the weak jobs data is expected to ease pressure on the Federal Reserve to hike interest rates, investors largely refrained from making significant moves.

Employment in Canada dropped unexpectedly by 11,000 in August, due mainly to the decline in private-sector jobs. Nonetheless, the jobless rate remained unchanged at 7.0 percent.

Worries about Ukraine have eased a bit on reports pro-Russian rebels and the Ukrainian government have signed a ceasefire deal today.

The S&P/TSX Composite Index closed Friday at 15,569.92, down 6.87 points or 0.04 percent. The index scaled a intraday high of 15,589.90 and a low of 15,525.16.

On Thursday, Canadian stocks closed lower 80.84 points or 0.52 percent at 15,576.79, after scaling a intraday high of 15,674.23 and a low of 15,541.88.

Crude oil ended sharply lower on Thursday, after a weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped less than expected last week.

The Energy Information Administration said U.S. crude oil inventories dropped 0.9 million barrels in the week ended August 29, while analysts anticipated a decline of 2.0 million barrels. The EIA report showed U.S. crude oil inventories at 359.6 million barrels, end last week.

The Energy Index inched up 0.09 percent, with U.S. crude oil futures for October delivery declining $1.16 or 1.2 percent to close at $93.29 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 0.15 percent, Enbridge Inc. (ENB.TO) gained 0.38 percent, Suncor Energy Inc. (SU.TO) inched up 0.05 percent, Encana Corp. (ECA.TO) dipped 0.08 percent, and Canadian Natural Resources Limited (CNQ.TO) added 0.29 percent.

The Financial Index slipped 0.38 percent, with Toronto-Dominion Bank (TD.TO) down 0.99 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.15 percent, Royal Bank of Canada (RY.TO) dropped 0.35 percent, National Bank of Canada (NA.TO) shed 0.60 percent, and Bank of Montreal (BMO.TO) lost 0.61 percent.

Bank of Nova Scotia (BNS.TO) is down 0.86 percent, after announcing a series of changes to its wealth, insurance and global transaction banking businesses. Each of these businesses will be integrated into the Bank's three Business Lines, namely Canadian Banking, International Banking and Global Banking & Markets.

Manulife Financial Corporation (MFC.TO) slipped 0.59 percent, Sun Life Financial Inc. (SLF.TO) lost 0.53 percent, and Power Corp. of Canada (POW.TO) dropped 1.82 percent.

Gold futures ended a tad higher with the dollar weakening against a basket of major currencies after data from the U.S. showed employment to have increased much less than expected in August.

Global Gold Index gained 0.35 percent, with gold for December delivery inching up $0.8 to close at $1,267.30 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.78 percent, B2Gold Corp. (BTO.TO) shed 0.20 percent, Yamana Gold Inc. (YRI.TO) slipped 0.59 percent, Eldorado Gold Corp. (ELD.TO) gained 1.59 percent, and Barrick Gold Corp. (ABX.TO) dived 0.70 percent.

The Capped Materials Index added 0.20 percent mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.35 percent.

The Diversified Metals & Mining Index edged up 0.06 percent, with First Quantum Minerals Ltd. (FM.TO) adding 0.20 percent, Lundin Mining Corp. (LUN.TO) up 2.23 percent, Sherritt International Corp. (S.TO) down 0.47 percent, and Teck Resources Limited (TCK.B.TO) up 0.29 percent.

The Healthcare Index jumped 1.14 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) gaining 1.97 percent, Catamaran Corporation (CCT.TO) up 2.36 percent.

The Capped Industrial Index shed 0.14 percent, with Canadian National Railway Company (CNR.TO) down 0.14 percent, SNC-Lavalin Group Inc. (SNC.TO) down 0.80 percent, and Finning International Inc. (FTT.TO) down 1.39 percent.

Bombardier Inc. (BBD.B.TO) slipped 0.55 percent, while WestJet Airlines Ltd. (WJA.TO) moved up 0.60 percent.

In economic news from the U.S., employment in the U.S. for August rose much less than expected, the Labor Department said Friday. The non-farm payroll employment increased by 142,000 jobs in August compared to economists' estimates for an addition of about 225,000 jobs.

Despite the weaker than expected job growth, unemployment rate in the U.S. edged down to 6.1 percent in August from 6.2 percent in July, due largely largely to a decrease in the size of the labor force which fell by 64,000.

In economic news from the eurozone, a report from Eurostat showed eurozone GDP remained flat in the second quarter, expanding just 0.2 percent. Year on year, GDP grew 0.7 percent in the second quarter, after seeing a 1 percent expansion in the previous three months.

A report from Destatis showed German industrial production to have grown the most in July since early 2012, rising by a seasonally adjusted 1.9 percent compared to June. Economists had forecast production growth of 0.4 percent following the original 0.3 percent gain in June.

A leading indicator of economic activity in Japan continued to increase in July, though at a less than expected rate, preliminary figures from Cabinet Office showed Friday. The leading index rose to 106.5 in July from 105.9 in June, when it had risen for the first time in five months. Economists had expected the index to rise to 107.1.