Monday, October 5th0.6°C

Energy stocks lead Toronto stock market lower amid huge April employment miss

TORONTO - Falling energy stocks led the Toronto stock market lower for a second consecutive day Friday.

The S&P/TSX composite index lost 11.97 points to 14,534.06 amid weak jobs data.

The Canadian dollar tumbled 0.62 of a cent to 91.78 cents US as Statistics Canada reported that the economy cut 28,900 jobs in April against expectations of a gain of about 12,000. It was also a huge turnaround from the previous month when the economy cranked out 43,000 jobs, which means just 14,000 jobs were added over the two-month period.

The unemployment rate held steady at 6.9 per cent.

U.S. indexes registered modest gains as the Dow Jones industrials rose 32.37 points to 16,583.34, the Nasdaq climbed 20.37 points to 4,071.87 and the S&P 500 index added 2.84 points to 1,878.47.

The TSX was negative this week after three weeks of advances, down 1.57 per cent after traders digested a heavy slate of earnings news and took some profits from sectors that have run up sharply this year, including gold and energy stocks. But it is still one of the best performing stock indexes, up almost seven per cent year to date, a gain that many analysts believe the TSX would register for the whole year.

"It’s been a good start to the year," said Chris King, portfolio manager at Morgan, Meighen and Associates.

"We’re up 6.5 per cent or so, I mean, that’s your annual return and we’re already there in May."

It was a quiet day for earnings news as shares in The Second Cup Ltd. (TSX:SCU) lost 22 cents or 4.54 per cent to $4.63 as the coffee chain reported a drop in its first-quarter net income to $56,000, or one cent per share, compared with $688,000, or seven cents per share, in the same quarter of 2013. Revenue was up at $7.6 million, compared with $6.2 million year-over-year.

On Thursday, after markets closed, energy producer Canadian Natural Resources (TSX:CNQ) said that quarterly net income totalled $622 million or 57 cents per share compared with $213 million or 19 cents in the prior-year period. Revenue for the three months ended March 31 rose to almost $4.4 billion from $3.76 billion in the prior-year period and its shares gave back 10 cents to $42.90.

In other corporate developments, The Financial Times reported that Apple is orchestrating a $3.2-billion acquisition of Beats Electronics, the headphone maker and music streaming distributor founded by hip-hop star Dr. Dre and record producer Jimmy Iovine. Apple could announce a deal as early as next week and its shares were off 0.4 per cent in New York.

The TSX energy sector led decliners, down 0.56 per cent as June oil gave up early gains to move 27 cents lower to US$99.99 a barrel.

The gold sector gained about 0.2 per cent while June bullion faded a dime to US$1,287.60 an ounce.

The base metals group was ahead 0.42 per cent as July copper was up two cents to US$3.08 a pound amid some positive inflation news from China.

Consumer prices in the world’s second-largest economy rose 1.8 per cent over a year earlier, down from March’s 2.4 per cent increase, giving the government more leeway if needed to stimulate the slowing economy.

Note to readers: This is a corrected version. It corrects income to $56,000 for Second Cup in its first quarter versus $688,000 a year earlier

The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13339.74+97.85
S&P CDNX525.56-0.33
S&P 5001951.36+27.54
CDN Dollar0.7634+0.0032
Natural Gas2.448-0.003

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.19+0.01
Metalex Ventures0.06+0.00
Russel Metals21.48-0.07
Copper Mountain Mining0.42+0.03
Colorado Resources0.08+0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.45
Diamcor Mining0.90+0.02



24318791165 High Road
3 bedrooms 1 baths
more details
Click here to feature your property
Please wait... loading

Perfect (reno’d) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council