Commodities weaken in mixed markets

The Toronto stock market closed lower on Friday as commodities weakened and the shine wore off jobs reports from both the U.S. and Canada.

The S&P/TSX composite index dropped 28.69 points to 12,418.99 — up 0.8% from where it closed last Friday. The TSX Venture Exchange was up 4.13 points at 1,344.98.

Stocks lost the momentum that was built up in the morning, particularly on Wall Street, after the U.S. government reported that the country’s unemployment rate fell below 8% for the first time since January 2009, while hiring increased to 114,000 jobs in September.

The Canadian dollar rose US 0.17¢ to US 102.16¢, adding slightly to a gain of more than US 0.7¢ earlier in the day.

In Canada, the jobs data was mixed, with the unemployment rate rising onetenth of a point to 7.4% in September even as the economy added 52,100 jobs — five times the number expected.

The report was well received by many economists, but BMO Financial Group chief economist Sherry Cooper warned that the outlook for the country is still clouded.

“The Canadian economy might not be as close to full-employment as we think,” she wrote in a note.

Despite the mixed day, the Dow managed to reach a milestone: its highest close since December 2007. The Dow Jones industrials moved 34.79 points higher, to 13,610.15, an increase of 1.3% from a week earlier. The Nasdaq composite index lost 13.27 points, to 3,136.19, and the S&P 500 index dropped 0.47 of a point, to 1,460.93.

The TSX energy sector fell 0.8%. November crude on the New York Mercantile Exchange dropped $1.83 to end at US$89.88 a barrel, a decline of 2.5% from a week ago.

Traders have been trying to gauge the strength of global oil demand while also watching developments surrounding Syria for any signs of a disruption in supplies from the Middle East.

December gold bullion dropped $15.70, to US$1,780.80 an ounce, closing at its lowest levels of the week. December copper was down US 0.8¢ at US $3.78 a pound.

The TSX industrials sector increased 0.5%, with Canadian Pacific rising $1.49, to $86.98.

In corporate news, Ottawa is extending its review of a proposed $6-billion takeover of Progress Energy Resources Corp. by Malaysia’s Petronas to Oct. 19. The deal faces the key “net benefit” test under the Investment Canada Act. Progress shares were up 6¢ to $21.85.

The yield on the 10-year U.S. Treasury note rose to 1.73%, from 1.68%, as investors shifted money from bonds into stocks.