DECEMBER JOB GROWTH EXCEEDS PREDICTIONS
The Toronto stock market racked up a solid gain Friday at the end of a positive week amid strong jobs data and relief that the U.S. economy avoided a combination of government spending cuts and tax increases that came to be known as the “fiscal cliff.”
The S&P/TSX composite index advanced 70.37 points higher to 12,540.81 as Statistics Canada reported the economy created 40,000 jobs last month. Economists thought that only about 5,000 positions would be turned out in December after job creation surged by 59,000 in November.
Canada’s unemployment rate edged down to a four-year low of 7.1% from 7.2% in November and 7.4% in October.
The Canadian dollar came back from early declines to move up US0.09¢ to US101.31¢.
The TSX Venture Exchange was ahead 2.05 points to 1,228.22.
New York indexes ran ahead as the U.S. economy cranked out 155,000 positions. That was in line with heightened expectations after payroll firm ADP reported Thursday that the U.S. private sector cranked out 215,000 jobs last month.
The Dow Jones industrials rose 43.85 points to 13,435.21, the Nasdaq inched up 1.09 points to 3,101.66 while the S&P 500 index closed at a five-year high, up 7.1 points to 1,466.47.
Indexes ended the first week of 2013 trading with solid gains after U.S. lawmakers reached an 11th hour deal to avert big tax hikes and spending cuts that were due to kick in at the start of the year. The TSX gained 1.82% this past week while the Dow Jones industrials ran ahead 3.84%.
Traders also looked ahead to the start of the fourth-quarter earnings season in the U.S. next week with resource giant Alcoa Inc. reporting after the close on Tuesday. The information technology sector led TSX advancers, up 1.38% with Research In Motion Ltd. ahead 50¢ to $11.85. The energy sector also helped support the TSX, up 1.07% as the February crude contract on the Nymex came well off session lows, closing up 17¢ to US$93.09 a barrel. Canadian Natural Resources improved by 61¢ to $30.15 while Imperial Oil was up 62¢ to $43.05. March copper fell two cents to US$3.69 a pound and the metals and mining sector was up 0.74%. Thompson Creek Metals jumped 20¢ to $4.27 and Taseko Mines climbed 12¢ to $3.19. Sun Life Financial gained 13¢ to $27.14 while Royal Bank advanced 37¢ to $61.07. The gold sector finished up 0.25% after spending most of the session in the red amid speculation over how long the U.S. Federal Reserve will continue its economic stimulus program involving the purchase of bonds to keep interest rates ultra low.