North American
markets closed slightly higher as we close out the week. The Dow extended its
weekly winning streak to three, while the TSX was anchored by a sagging gold
sector and Apple’s 8% decline singlehandedly pulled the S&P500 lower.
A better than
advertised 146,000 increase in US employment got trading started off on the
right foot this morning, but that warm and fuzzy feeling was short lived after
a subsequent report showed consumer confidence fell sharply.
The Canadian employment
report was nothing short of blockbuster with a gain of 59,300 positions last
month, about six times more than forecast. The finer details were equally as
encouraging as almost all of the gain was in full-time employment with private
companies. We also had a decent earnings report from Scotiabank who beat
estimates on the back of strong activity in capital markets, a continuing theme
we’ve seen across the financial sector.
The Canadian dollar
climbed to a one month high after the employment report, up 24 bps to
US$1.0114. Bond yields jumped a couple of ticks for the same reason, with the
5-year Canada now yielding 1.29% and the 10-year 1.71%. Gold is up a dollar to
US$1703/oz. Oil is flat at US$86.24/barrel.
Have a great
weekend.