TSX May Open Higher As Canada Adds More Jobs – Canadian Commentary
(RTTNews) – Bay Street stocks are poised for a higher open Friday amid encouraging jobs data and positive cues from the global equity markets. Also, firm energy prices may help lift energy stocks that have been battered badly in the last week’s sell-offs.
Official data revealed that Canada added more jobs than expected in June, a day after the IMF upped its growth forecast for the nation. The Canadian dollar rose against its U.S counterpart immediately after the jobs report.
Yesterday the International Monetary Fund said that the Canadian economy is on track to grow more quickly this year than expected and upped its 2010 growth forecast for Canada to 3.6% from its earlier 3.1% in April. The IMF also raised its 2010 world growth forecast to 4.6% from 4.2% in April.
Meanwhile, U.S stock futures were pointing to a mixed open, after three days of rally.
Elsewhere, the Asian markets ended up for a second session, lifting the the MSCI Asia Pacific Index up by about a percent to its highest level since June 24. Meanwhile, stocks in Europe rose for a fourth day, albeit with marginal gains.
On Thursday, the S&P/TSX Composite Index edged up 36.10 points or 0.32% to 11,433.37, after moving forth and back the unchanged line for most of the day.
The price of crude oil moved up for a third session to recover from its 4-week low. Crude for August edged up $0.07 to $75.51 a barrel.
Meanwhile, the price of gold recovered from its 6-week low, with gold for August adding $7.80 to $1,203.90 an ounce.
In corporate news, specialty retailer West 49 Inc. (WXX.TO) said that U.S. based action sports retailer, Zumiez Inc. (ZUMZ), would be prepared to acquire all of its outstanding common shares for C$1.30 per share.
Transportation logistics software solutions provider TECSYS Inc. (TCS.TO) reported higher fourth-quarter net income of C$0.10 per share, compared to C$0.04 per share in the same quarter last year.
Communications equipment maker RuggedCom Inc. (RCM.TO) said it received $2 million purchase orders from major US rail companies.
Mineral properties developer Solitaire Minerals (SLT.V) said it raised $0.54 million at $0.05 per share through a non-brokered private placement announced on June 15th, 2010.
Mineral properties developer Goldcliff Resource (GCN.V) said it raised C$312,000 at C$0.10 per unit through a non-brokered private placement.
In brokerage update, JP Morgan downgraded Canadian National Railway (CNR.TO) to ‘Neutral’ from ‘Overweight’ with a six month price target of $68. Yesterday, the stock closed at C$61.15.
In economic news, Statistics Canada said employment rose by 93,000 in June, pushing the unemployment rate down 0.2% to 7.9%. This is the first time the rate has been below the 8% mark since January 2009. Economists were expecting the unemployment rate to remain unchanged at 8.1% and the economy to add only 20,000 jobs.
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