Equities in Canada’s largest market opened lower Friday after softer-than-expected jobs reading in the United States added to recession fears, while higher gold prices lifted mining stocks.
The TSX Composite Index hurtled lower 332.89 points, or 1.5%, to open the last session before a long weekend at 22,390.32.
The Canadian dollar progressed 0.19 cents at 72.23 cents U.S.
In corporate news, resources companies like pipeline operator Enbridge and oil producer Imperial Oil are set to report their quarterly figures before the opening bell on Friday. Enbridge shares lost 27 cents to $51.88, while shares in IMO faded $1.33, or 1.4%, to $94.63.
Magna International missed analysts' estimates for second-quarter results, hurt by production being stopped for certain vehicles and lower number of automobiles it assembled. Magna shares sagged $1.95, or 3.3%, to $57.68.
Markets in Toronto will be closed Monday for Civic Day.
ON BAYSTREET
The TSX Venture Exchange fell 7.77 points, or 1.4%, to 564.87.
All but three of the 12 TSX subgroups were lower, weighed most by information technology, down 3.7%, energy, down 2.6%, and industrials, bowing 1.7%
The three gainers were gold, up 1%, while utilities improved 0.4%, and materials picked up 0.1%.
ON WALLSTREET
Stocks slid Friday as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.
The Dow Jones Industrials jettisoned 688.54 points, or 1.7%, to 39,659.43.
The S&P 500 index slid 133.76 points, or 2.5%, to 5,312.92.
The NASDAQ hesitated 553.82 points, or 3.2%, to 16,640.33.
Amazon led the losses, sliding 9% after missing the Street’s estimates on second-quarter revenue and issuing a disappointing forecast. Intel cratered 26% after announcing weak guidance and layoffs. Apple shares inched lower despite the iPhone maker posting a fiscal third-quarter earnings beat as most tech stocks were hit hard following the weak jobs figures.
Nvidia lost 4.5% following a 6% loss a day before.
Stocks with the most to lose from a recession also declined. Bank of America lost 3%, and Caterpillar shares were also lower. The 10-year Treasury yield fell to its lowest since February as investors flooded into bonds for safety.
Friday’s stock pullback would added to a steep selloff from the previous session. The Dow and S&P 500 each fell more than 1% on Thursday, while the NASDAQ slid 2.3%. Those declines sent ripples around the world, with the Japanese Nikkei losing 5.8% overnight.
July job growth in the U.S. slowed more than expected, while the employment rate rose to the highest since October 2021. Non-farm payrolls grew by just 114,000 last month, the Labor Department reported, a slowing from 179,000 jobs added in June and below the 185,000 expected by economists polled by Dow Jones. The unemployment rate increased to 4.3%.
Prices for the 10-year Treasury popped, with yields falling to 3.81% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices slumped $2.53 at $73.78 U.S. a barrel.
Gold prices hiked $32.10 to $2,512.90.
