Markets shrug off job losses

Feb. 6, 2009 (Baystreet.ca) --

10:57 am EST Markets resumed their upward momentum in the first hour of trading Friday, turning a deaf ear to negative job numbers.

The S&P TSX Composite Index was ahead 101.44 points to 8,962.42 by mid-morning, after Statistics Canada said Canada lost a record 129,000 jobs last month.

That was far more than the consensus expectation of 40,000, and the unemployment rate surged more than half a point to 7.2%. The drop in jobs exceeded any contraction during previous recessions in the early 1980s and 1990s.

On the TSX, the energy sector was down as stocks like EnCana Corp. fell 92 cents to $54.78.

The TSX financial sector gained ahead of an announcement from U.S. Treasury Secretary Timothy Geithner on how the government will employ the second half of a $700-billion U.S. bank bailout package as well as other help for financial players. CIBC advanced 72 cents to $47.61.

TD Bank Financial Group confirmed it is raising its ownership of U.S. brokerage TD Ameritrade to 45% from 39.9%. The cost is $515 million, 50% above the current market value, under a previously negotiated hedging arrangement. TD shares were up 33 cents to $39.50.

The Ontario Teachers' Pension Plan has confirmed talks with Petro-Canada about creating more value for shareholders. Petro-Canada shares were down 33 cents to $29.

The base metals sector gained as the March copper contract in New York rose seven cents to $1.57 U.S. a pound. Teck Cominco Ltd.rose 40 cents to $5.40.

The TSX was supported by two of its largest companies. Research In Motion Ltd. was up $3.73 to $73.67 while Potash Corp. rose $7.13 to $113.23.

Shares in Canwest Global Communications Corp. were up five cents to 47 cents after it said it is exploring the sale or closure of five small-city TV stations. Analysts say it's unlikely the company will find a buyer in the current recessionary environment.

Nortel Networks Corp. is seeking a three-month extension to deal with its restructuring under bankruptcy protection from creditors. Its shares were off half a cent at 10.5 cents.

Fraser Papers Inc. jumped 11.5 cents or 35% to 44.5 cents after it reported a loss of $15.9 million or 32 cents per share in the fourth quarter.

The Canadian dollar slumped 0.75 cents to $80.42 cents U.S.

BAYSTREET Of the 13 TSX sub-groups, 11 started out positive, led by metals and mining, which leapt 6.4%, materials, 2.9% to the upside, and information technology, ahead 2.5%.

Two groups were negative. Consumer staples were down 1% and energy stocks were off 0.4%

The TSX Venture Exchange was up 7.51 points to 905.73, while the NASDAQ Canada index surged 21.15, at 576.95

ON WALLSTREET

The Dow Jones industrials index charged ahead 134.05 points to 8,197.12 The Standard & Poor's 500 index gained 11.71 points to 857.56. The NASDAQ composite index picked up 23.86 points to 1,570.10

Economically speaking, the U.S. Labor Department reported the American economy lost 598,000 jobs during January, worse than the 524,000 economists expected. The U.S. jobless rate rose to 7.6% from 7.2%.

The March crude contract on the New York Mercantile Exchange was down $2.44 to $38.73 U.S. a barrel.

The April bullion contract on the Nymex was down $4.70 to $909.50 U.S. an ounce.