Solid U.S. jobs data lifts markets

The Toronto stock market closed modestly higher Friday amid a solid U.S. employment report for May and weak Canadian jobs data.

The S&P/TSX composite index was up 38.72 points to 14,838.9, weighed down by mining stocks as copper and gold prices lost ground.

The Canadian dollar was slightly lower as job creation figures for Canada came in above expectations, up 25,800 for the month.

But Statistics Canada said the gains were part-time and the unemployment rate edged up to 7 per cent from 6.9 per cent as more Canadians went looking for work in May.

The loonie was down 0.01 of a cent (U.S.) to 91.49 cents.

The U.S. Labor Department said the American economy cranked out 217,000 jobs, roughly in line with expectations. That’s down from 282,000 in April, which was revised slightly lower. Despite the gains, the unemployment rate remained 6.3 per cent.

“It’s confirmation that things are, as expected, improving,” said Wes Mills, chief investment officer Scotia Private Client Group.

“The more disappointing numbers were the Canadian ones. The headline number looked okay but underneath, part-time jobs increased and full-time lost.”

In New York, the Dow Jones industrials gained 88.17 points to16,924.28, the Nasdaq advanced 25.17 points to 4,321.4. The S&P 500 index was ahead 8.98 points to 1,949.44. Industrials led TSX gainers, up 1.3 per cent. Air Canada shares rocketed to a 52week high amid an upgrades from Walter Spracklin of RBC Capital Markets. The TSX energy sector was ahead 0.34 per cent as the Financial Times reported that EU officials have decided to change a draft of a fuelquality directive, something Canadian officials have lobbied their European counterparts to do. Proposed EU environmental legislation would have set heavy penalties on petroleum products made from Alberta’s oilsands, citing higher carbon emissions associated with its production. There has been speculation in Ottawa that the crisis between Russia and Ukraine may have helped Canada’s cause. Prime Minister Stephen Harper has suggested that Europe should reduce its dependence on Russian energy supplies and look to Canada for some of its energy. The TSX ended the week up 234 points or 1.6 per cent, leaving the Toronto market ahead 8.9 per cent year to date, led by gains in energy, mining and financials. U.S. markets also gained ground last week, with the Dow industrials ahead 1.24 per cent.