“I Am Looking For An Honest Man” -Diogenes
TSX End Lower In a Broad Decline
Canadian stocks fell Friday for a second day, ending at a two-month low, after gold miners slumped as the dollar surged amid better-than-forecast hiring gains in the U.S. and Canada. The Standard & Poor’s/TSX Composite Index slipped 62.23 points, or 0.4 per cent, to 14,957.16 in Toronto. The gauge dropped 0.4 per cent for the week. Canada added six times as many jobs in May as economists predicted, with the job market proving robust even as the economy recovers from the effects of plunging crude-oil prices. Nine of 10 industries in the S&P/TSX declined Friday on trading volume 10 per cent lower than the 30-day average. The loonie was up 0.42 of a U.S. cent to 80.39 cents.
The Dow and S&P 500 eased on Friday as increasing expectations the Federal Reserve could raise rates as soon as September offset optimism over a recovery in the U.S. labour market. Stronger-than-expected jobs data for May and a pickup in wages were the latest signs of better momentum in the economy. Wall Street’s top banks said they expect the Fed to begin raising interest rates in September, followed by another increase before the end of the year, according to a Reuters poll. The Dow Jones industrial average fell 56.12 points, or 0.31 per cent, to 17,849.46, the S&P 500 lost 3.01 points, or 0.14 per cent, to 2,092.83 and the Nasdaq Composite added 9.33 points, or 0.18 per cent, to 5,068.46. For the week, the S&P 500 fell 0.7 per cent, its second straight week of losses, the Dow was down 0.9 per cent and the Nasdaq was down 0.03 per cent.
Canada Adds 59,000 Jobs in May
Canada’s economy added 59,000 jobs last month, but the jobless rate stayed the same at 6.8 % because more people were looking for work. Statistics Canada reported Friday that employment increased in Ontario, British Columbia and Nova Scotia, while it declined in Newfoundland and Labrador, Manitoba and New Brunswick. The rest of the country’s labour force was just about unchanged. Most of the jobs were in the private sector, fairly evenly distributed between full-time and part-time jobs. Two sectors; manufacturing and health care; were responsible for most of the gains, with 22,000 jobs added in the former and 21,000 in the latter. “With the U.S. economy showing clear signs of improvement, this is perhaps a sign that the Canadian non-energy economy is finally beginning to shift into a higher gear, aided by the lower Canadian dollar,” said David Madani, an economist with Capital Economics in Toronto. “We still think that the worst effects of this aren’t over, and still expect the economy to grow at a fairly unspectacular pace over the rest of the year,” he said. The 59,000 figure is much stronger than the 10,000 new jobs expected by a consensus of economists polled by Bloomberg.
Market Update as of June 5 2015
The TSX closed at 14957, down -77 points or -0.51% over the past week. YTD the TSX is up 1.38%.
The DOW closed at 17850, down -161 points or -0.89% over the past week. YTD the DOW is up 0.10%.
The S&P closed at 2093, down -14 points or -0.66% over the past week. YTD the S&P is up 1.70%.
The Nasdaq closed at 5069, down -1 points or -0.02% over the past week. YTD the Nasdaq is up 7.24%.
Gold closed at 1171, down -19.00 points or -1.60% over the past week. YTD gold is down -0.09%.
Oil closed at 58.88, down -1.54 points or -2.55% over the past week. YTD oil is up 11.75%.
The USD/CAD closed at 1.243424, down -0.0008 points or -0.07% over the past week. YTD the USD/CAD is up 5.95%.
Sources: Bloomberg; Investment Executive; advisor.ca