Stocks Continue In Red After Jobs Figures| MENAFN.COM

Sunday, 14 August 2022 03:19 GMT

Stocks Continue In Red After Jobs Figures


(MENAFN- Baystreet.ca) Stocks Continue in Red After Jobs Figures
Canopy, TC Stand out








Canada's resource-heavy main stock index fell on Friday and was set to end the week lower, as energy stocks posted steep weekly losses, while fears of an aggressive policy tightening path by central banks weighed on global sentiment.
The TSX dropped 106.75 points to break for lunch at 19,470.29.
The Canadian dollar declined 0.43 cents to 77.27 cents U.S.
Among individual movers, Canopy Growth slumped 26 cents, or 7.1%, to $3.43, on posting another core loss, denting investor hopes that the cannabis producer would turn profitable anytime soon.
TC Energy fell $2.73, or 4.2%, to $62.90 after saying on Thursday it had struck a deal with a Mexican state utility to develop a $4.5-billion natural gas pipeline.
On the economic slate, Statistics Canada reports the economy shed 31,000 jobs last month, and the unemployment rate was steady at 4.9%.
Also Friday, the IVEY Purchasing Managers Index dwindled to 49.6 in July, way below June's 62.2, and below the 56.4 figure for July 2021
ON BAYSTREET
The TSX Venture Exchange dipped 3.3 points to 656.78.
All but one of the 12 TSX subgroups were lower midday, with consumer staples sagging 1.6%, gold down 1.5%, and information technology slipping 1.3%.
Energy proved the lone gainer, up 1.8%.
ON WALLSTREET
Stocks fell Friday in a volatile trading session after the July jobs report was much better than expected, as investors assessed what a strong labour market would mean for the Federal Reserve's rate tightening campaign.
The Dow Jones Industrials headed lower 82.8 points to 32,644.02
The S&P 500 fell 25.26 points to 4,126.68.
The NASDAQ Composite sank 119.32 points to 12,601.26.
Losses were offset by bank stocks, which rose on hopes that interest rate hikes will continue at a solid clip. Energy stocks also gained, but technology companies slumped.
The labour market added 528,000 jobs in July, easily beating a Dow Jones estimate of a 258,000 increase. The unemployment rate ticked down to 3.5%, below the 3.6% estimate.
Wage growth also ticked up more than estimated, up 0.5% for the month and 5.2% higher than a year ago, signaling that high inflation is likely still a problem.
Major averages posted their best month since 2020 in July on the hope the Fed would slow the pace of its hikes. The S&P 500 added 9.1% last month. Friday's losses pushed the index into the red for this week.
Treasury prices wilted in the summer heat, raising yields to 2.86% from Thursday's 2.67%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.08 to $89.62 U.S. a barrel.
Gold prices demurred $17.60 to $1,788.30 U.S. an ounce.









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