Mar. 6, 2009 (Baystreet.ca) --
10:37 am EST
Stock markets were modestly higher Friday morning as investors reckoned that dismal U.S. jobs data for February could have been worse.
Toronto's S&P/TSX composite index got a head-start on the rest of the day, advancing 105.24 to 7,734.41
Many analysts believe there is little keeping stocks from falling even further as worries about the automotive and financial sectors continue to weigh on investors.
The TSX's main support came from the energy sector as Suncor Inc. rose 87 cents to $27.07 and Canadian Natural Resources gained $1.33 to $41.84.
The base metals sector rose as Teck Cominco Ltd. improved 18 cents to $3.60.
In the financial sector, National Bank shed 31 cents to $35.44.
The Bank of Nova Scotia has taken a majority interest in Five Continents Financial Ltd., a global asset management firm in the Cayman Islands. The terms of the transaction were not disclosed and Scotiabank shares were off two cents to $26.19.
Autoparts maker Linamar Corp.has cut its quarterly dividend in half. The Ontario-based company reported a fourth-quarter loss Thursday and said it would pay a quarterly dividend of three cents per share, down from six cents in the previous quarter. Linamar shares fell 22 cents to $2.78.
In earnings news, SNC Lavalin Group Inc. reported fourth-quarter net income of $75 million, compared with a net income of $68.7 million for the same period in 2007. For all of 2008, the engineering giant reports $312.5 million in net income, compared with $153.2 million in 2007 and its shares climbed $1.35 to $30.
Industrial waste management services provider Newalta Inc. said Friday it was cutting its dividend by 14 cents to five cents after reporting a drop in profits for both the most recent quarter and fiscal year. The company cited volatile markets and weak commodity prices and its shares slipped 13 cents to $3.57.
The Canadian dollar picked up 0.43 cents, to 78.01 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, 11 were up to start Friday. Energy stocks were up 3.7%, metals and mining were next in line, ahead 2.6% and financials cruised along, 1.4%
The two laggards were health-care stocks, down 1% and information technology, off 0.3%.
The TSX Venture Exchange was 3.92 points to the better, at 833.61, while the Nasdaq Canada index tailed off 3.97 points to 384.98
ON WALLSTREET
The Dow Jones industrial average dug itself out of the rubble of yesterday's 13-year low, to gain 69.14 points to 6,663.58.
The S&P 500 index was up 6.81 to 689.36 from Thursday's multi-year low while the Nasdaq composite index came off the deck to pick up 2.81 to 1,302.40 from a gully of its own.
Friday, word came out from the U.S. Labor Department that the economy shed 651,000 jobs last month - just slightly above expectations - while the U.S. unemployment rate rose to 8.1% from 7.6% in January.
Revised data released Friday show U.S. job losses in December totalled 681,000, against the original 577,000 figure, while 655,000 jobs were lost in January, not the 598,000 originally reported.
U.S. bank Wells Fargo & Co. has slashed its quarterly dividend 85%, to five cents a share from 34 cents, in an effort to save $5 billion U.S. Its shares climbed 32 cents to $8.44. U.S.
Citigroup and Bank of America Corp. had already slashed their quarterly dividends to a penny per share.
Dow component Coca-Cola said Friday it will invest an additional $2 billion U.S. in China over the next three years. That's in addition to a $2.4 billion U.S. bid for a Chinese juice maker that's being reviewed by the Beijing government
Treasurys erased an earlier gain Friday, pushing yields up slightly, after the Labor Department news. Yields on 10-year notes increased one basis point to 2.82%.
The April crude contract in New York rose $1.25 to $46.11 U.S. a barrel
Gold prices surged $10.20 to $938.00 U.S.