“Well Done Is Better Than Well Said” – Benjamin Franklin
Markets Climb Friday Following Solid U.S. Jobs Figures
Canadian stocks climbed on Friday as a resurgence in U.S. job creation in June showed resilience in the economy of Canada’s largest trading partner, offsetting a decline in the domestic payroll. The S&P/TSX Composite Index rose 0.89 per cent, or 125.38 points, to 14,259.84 in Toronto. The gains were broad and significant with five of the index’s 10 main sectors notching gains of more than 1 per cent as investors focused on the bumper number from the much larger economy of the United States.
Canada’s job market weakened in June, capping the worst quarter for payrolls in two years. Employment fell by about 700 in June, short of economists’ forecasts for a 5,000 gain, while the jobless rate unexpectedly dropped to 6.8 percent from 6.9 per cent as Canadians left the job market. By contrast, U.S. payrolls surged by 287,000 last month, topping the highest estimate in a Bloomberg survey and accelerating the most since October. The unemployment rate rose to 4.9 per cent as more people entered the workforce. The U.S. is Canada’s largest trading partner by a wide margin, accounting for more than $540-billion in trade last year, according to data compiled by Bloomberg.
U.S. stock markets responded positively to the news, with the Dow Jones industrial average climbing 250.86 points at 18,146.74, the broader S&P 500 composite index advancing 32.00 points to 2,129.90 and the Nasdaq composite gaining 79.95 points to 4,956.76.
Most Canadians Would Change Jobs For Better Retirement Benefits
The latest ADP Canada Sentiment Survey found that retirement benefits like pensions and group registered retirement savings plans can play a big part in an employee’s decision to change jobs. According to the survey, 77% of Canadian workers would consider leaving their current jobs if, all other things being equal, another employer offered a retirement plan. “These numbers are an indication that employers should pay close attention to what’s important to their employees, and to what is being offered by their competitors,” said Sooky Lee, division vice president and general manager of HR business process outsourcing at ADP Canada. “Most companies track salaries to make sure they are competitive, but many forget about other compensation factors, such as retirement programs.
The survey found that employees in British Columbia were most likely to consider leaving their job for better retirement benefits, with 88% saying they would consider making a change. Those in Quebec were least likely, with only 69% saying they’d consider leaving for better retirement plans. And while most (70%) employees of small companies (2-50 employees) said they’d consider changing jobs for better retirement plans, a far greater percentage of employees at midsize companies with 51-500 employees (86%) and large companies (74%) said they’d consider making a change. And employers shouldn’t assume that younger employees won’t be as interested in retirement benefits. In fact, the study found no significant difference in interest between millennials and older employees. “Workers in the 18-to-34 age group are just as interested as their older colleagues in having retirement support,” Lee said.
Weekly Market Wrap Up As of July 8 2016
The TSX closed at 14260, up 195 points or 1.39% over the past week. YTD the TSX is up 9.79%.
The DOW closed at 18147, up 198 points or 1.10% over the past week. YTD the DOW is up 4.14%.
The S&P closed at 2130, up 27 points or 1.28% over the past week. YTD the S&P is up 4.21%.
The Nasdaq closed at 4957, up 94 points or 1.93% over the past week. YTD the Nasdaq is down -1.00%.
Gold closed at 1367, up 38.00 points or 0.96% over the past week. YTD gold is up 29.08%.
Oil closed at 45.16, down -3.66 points or -7.50% over the past week. YTD oil is up 21.89%.
The USD/CAD closed at 1.303979, up 0.0140 points or 1.08% over the past week. YTD the USD/CAD is down -5.76%.
The MSCI closed at 1644, down -15 points or -0.90% over the past week. YTD the MSCI is down -1.14%.
The Euro Stoxx 50 closed at 2838, down -45 points or -1.56% over the past week. YTD the Euro Stoxx 50 is down -13.16%.
The FTSE closed at 6591, up 13 points or 0.20% over the past week. YTD the FTSE is up 5.59%.
The CAC closed at 4191, down -83 points or -1.94% over the past week. YTD the CAC is down -9.62%.
DAX closed at 9630, down -146.00 points or -1.49% over the past week. YTD DAX is down -10.36%.
Nikkei closed at 15107, down -576.00 points or -3.67% over the past week. YTD Nikkei is down -20.63%.
The Shanghai closed at 2988, up 55.0000 points or 1.88% over the past week. YTD the Shanghai is down -15.57%.
Sources: Bloomberg; Investment Executive; CIBC; advisor.ca,