S&P/TSX composite down in unhurried-morning trading, U.S. stocks also lower
TORONTO — Canada’s well-known inventory index moved lower Friday and U.S. inventory markets fell after basically the latest job reports on all aspects of the border.
The S&P/TSX composite index closed down 91.58 parts at 25,442.91.
In Recent York, the Dow Jones industrial moderate turned into as soon as down 444.23 parts at 44,303.40. The S&P 500 index turned into as soon as down 57.58 parts at 6,025.ninety nine, whereas the Nasdaq composite turned into as soon as down 268.59 parts at 19,523.40.
When it involves U.S. economic knowledge, “we are in an environment now where perfect news is unhealthy news,” acknowledged Philip Petursson, chief investment strategist at IG Wealth Management.
The U.S. labour market added 143,000 jobs in January whereas the jobless rate fell to four per cent.
The document turned into as soon as fairly softer than anticipated nevertheless aloof perfect, acknowledged Petursson, with unemployment down and solid moderate hourly earnings.
To boot to, “the revisions to the jobs knowledge for the stout year turned into as soon as now not as deep as what folks had thought,” he acknowledged, doubtlessly sparking considerations about wage inflation.
That would perhaps maybe maybe now not bode successfully for market watchers hoping for further curiosity rate cuts from the U.S. Federal Reserve.
“While it is on the one hand perfect news for the financial system, perfect news for households … It be going to weigh on bond yields, pushing bond yields up, which is ready to weigh on equity valuations, pushing them down,” acknowledged Petursson.
Amazon also dragged on the market after its earnings forecast fell instant of expectations, and wasn’t the correct well-known tech name to disappoint merchants this earnings season, acknowledged Petursson.
“What Amazon’s earnings spotlight is the valuations that the market has put on these stocks. And within the event that they disappoint, even by a runt bit, they undergo for it,” he acknowledged.
Amazon’s piece mark fell 4.1 per cent Friday.
“We’re in a terribly perfect economic environment. We’re in a terribly perfect earnings environment,” acknowledged Petursson. “But valuations doubtlessly comprise gotten too a long way ahead of themselves.”
Basically the latest jobs knowledge turned into as soon as also released in Canada, where the unemployment rate ticked lower to 6.6 per cent and the financial system beat expectations by adding 76,000 jobs.
While now not as solid because the U.S. labour market, the Canadian labour market is slightly wholesome upright now when put next with the closing couple of a long time, acknowledged Petursson.
“The Canadian financial system has been form of sputtering along, and yet we were getting this very sturdy jobs knowledge. One thing would now not seem upright right here,” he acknowledged.
The Canadian dollar traded for 69.94 cents US when put next with 69.82 cents US on Thursday.
The March low oil contract turned into as soon as up 39 cents at US$71 per barrel and the March pure fuel contract turned into as soon as down 10 cents at US$3.31 per mmBTU.
The April gold contract turned into as soon as up US$10.90 at US$2,887.60 an ounce and the March copper contract turned into as soon as up 13 cents at US$4.59 a pound.
— With info from The Associated Press
This document by The Canadian Press turned into as soon as first printed Feb.7, 2025.
Firms on this memoir: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
