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Equities
Key indexes on both sides of the border hit record highs early Friday with energy shares buoying the TSX while a positive jobs report fuelled optimism in the United States.
At 9:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 36.31 points, or 0.17 per cent, at 21,378.44.
In the U.S., the Dow Jones Industrial Average rose 144.52 points, or 0.40 per cent, at the open to 36,268.75.
The S&P 500 opened higher by 19.20 points, or 0.41 per cent, at 4,699.26, while the Nasdaq Composite gained 63.25 points, or 0.40 per cent, to 16,003.56 at the opening bell.
Attention early Friday will be focused on jobs data on both sides of the border.
The U.S. Labor Department said the U.S. economy added 531,000 new positions last month. Economists had been forecasting a gain of about 450,000. The unemployment rate fell to 4.6 per cent last month, from 4.8 per cent in September.
In this country, the hiring streak continued, although at a cooler pace. Last month, the Canadian economy added 31,000 new jobs with the jobless rate falling to 6.7 per cent from 6.9 per cent in August. Economists here had been expecting about 50,000 new positions for September.
On the corporate front, Canadian investors have a another heavy earnings day ahead with results from Telus, Enbridge, TC Energy and Magna International.
Ahead of the opening bell, Enbridge reported a jump in third-quarter profit, helped by higher energy prices. The Calgary-based company’s adjusted earnings rose to $1.2-billion, or 59 cents per share, in the quarter ended Sept.30, from $961-million, or 48 cents per share, a year earlier.
Telus, meanwhile, raised its dividend as it reported a third-quarter profit of $358-million or 25 cents a share, up from $321-million or 24 cents in the same quarter last year. The telecom company says it will now pay a quarterly dividend of 32.74 cents per share, up from 31.12 cents per share.
After Friday’s close, investor attention will return to the boardroom rift at Rogers Communications. A B.C. Supreme Court judge is expected to announce a decision Friday afternoon in the battle for control of the Rogers board. The court has been asked to rule on whether a newly constituted board under the leadership of Edward Rogers is legitimate after he removed and replaced five directors. Three of his family members argue the decision should have involved a vote by shareholders.
Overseas, the pan-European STOXX 600 was up 0.07 per cent per cent by midday. Britain’s FTSE 100 rose 0.31 per cent. Germany’s DAX rose 0.11 per cent. France’s CAC 40 added 0.91 per cent.
In Asia, Japan’s Nikkei fell 0.61 per cent. Hong Kong’s Hang Seng lost 1.41 per cent on weakness in property development shares.
Commodities
Crude gained after OPEC+ held to its current production plan despite pressure from the U.S. to increase output to offset high prices.
The day range on Brent is US$80.26 to US$81.74. The range on West Texas Intermediate is US$78.96 to US$80.17. Despite recent gains, crude prices are on track for weekly declines with Brent down about 4 per cent so far while WTI is off roughly 5 per cent.
The OPEC+ group agreed on Thursday to stick to their plan to raise oil output by 400,000 barrels per day from December. U.S. President Joe Biden had called on the group to raise production to help cool rising energy costs.
“The group is seemingly very comfortable with current price levels and wary of the potential for demand to fall in the coming months if COVID cases rise,” OANDA senior analyst Craig Erlam said.
“That may change by the time they next meet on Dec. 22, if demand remains firm and prices jump above US$90 [a barrel], for example, but even that may not be enough.”
Gold prices, meanwhile, are on track for a weekly gain after decisions from the Federal Reserve and the Bank of England earlier in the week helped bolster bullion’s appeal.
Spot gold was up 0.3 per cent at US$1,796.64 per ounce early Friday, and gained 0.8 per cent so far in the week. U.S. gold futures climbed 0.3 per cent to US$1,798.20.
Currencies
The Canadian dollar was down slightly as its U.S. counterpart looked set to post a second week of gains.
The day range for the loonie is 80.18 US cents to 80.32 US cents.
The Canadian dollar was little changed in the immediate wake of the latest jobs numbers.
On world markets, the U.S. dollar index, which measures the greenback against a basket of six rivals, was steady at 94.327 after rising 0.51 per cent overnight. That lifted it into the positive for the week, adding 0.20 per cent, according to figures from Reuters.
The British pound was little changed on Friday after a 1.36-per-cent decline in the previous session The pound is down more than 1 per cent for the week.
The euro largely flat at US$1.1556 after falling 0.49 per cent overnight, putting it on track for a 0.16 per cent decline for the week.
In bonds, the yield on the U.S. 10-year note was down slightly at 1.519 per cent.
More company news
Magna International Inc. reported its third-quarter profit fell compared with a year ago as auto production around the world fell due the shortage of semiconductor chips. The auto parts maker says it earned US$11-million or 4 cents per diluted share for the quarter ended Sept. 30 compared with a profit of US$405-million or US$1.35 per diluted share in the same quarter last year. Sales fell to US$7.92-billion compared with US$9.13-billion a year ago. On an adjusted basis, Magna says it earned 56 cents per diluted share, down from US$1.95 per diluted share a year ago. Analysts on average had expected an adjusted profit of 60 cents per share and US$7.89-billion in revenue, according to financial markets data firm Refinitiv.
Canada Goose Holdings Inc beat Wall Street estimates for quarterly revenue on Friday, driven by surging online sales and a strong demand for its luxury parkas amid the reopening of major economies. Revenue rose to $232.9-million in the second quarter ended Sept. 26, from $194.8-million a year earlier, beating analysts’ estimates of $206.1-million, according to Refinitiv IBES.
Cannabis company Canopy Growth Corp reported a wider second-quarter adjusted core loss on Friday, dented by lower sales and higher cost. On an adjusted basis, the company posted a loss before interest, taxation, depreciation and amortization of $163-million for the three months ended Sept. 30, compared with a loss of $85.7-million a year earlier.
A trial of Pfizer Inc’s experimental antiviral pill for COVID-19 was stopped early after the drug was shown to cut by 89 per cent the chances of hospitalization or death for adults at risk of developing severe disease, the company said on Friday. Shares jumped 10 per cent in premarket trading.
Shares of home fitness company Peloton Interactive fell nearly 30 per cent in premarket trading after the company posted a loss in the latest quarter and slashed its forecast for the year. Peloton reported a net loss of US$376-million or US$1.25 per share, for the first quarter ended Sept. 30, compared with a profit of US$69.3-million, or 20 US cents per share, a year earlier. Peloton said it now expects annual sales between US$4.4-billion and US$4.8-billion, compared with US$5.4-billion previously.
Uber Technologies Inc on Thursday reported its first profitable quarter on an adjusted basis since it launched more than a decade ago with its two most important segments, ride-hailing and restaurant delivery, both turning the corner. The California-based company reported adjusted earnings before interest, taxes, depreciation and amortization, a measure that excludes one-time costs, primarily stock-based compensation, of US$8-million for the quarter ended Sept. 30. That compared to a loss on the same basis of US$625 million a year ago.
Current and former directors of Boeing Co have agreed to settle a shareholder lawsuit that claimed the U.S. plane maker’s board failed to properly oversee safety matters related to the 737 MAX, the Wall Street Journal reported late Thursday. The current and former directors’ insurance companies will pay about $225 million, the report added.
Economic news
(8:30 a.m. ET) Canadian employment for October.
(8:30 a.m. ET) U.S. nonfarm payrolls for October.
(10 a.m. ET) Canada’s Ivey PMI for October.
(3 p.m. ET) U.S. consumer credit for September.
With Reuters and The Canadian Press