Motorized mannequins hold signs that read "Hire Me" in Toronto May 23, 2014.MARK BLINCH/Reuters
The Toronto stock market was positive Friday as jobs data for January in both Canada and the U.S. blew past expectations and the price of oil pushed higher.
The S&P/TSX composite index was well off early highs, as losses in mining sectors gained momentum, but the main index was still ahead 26.47 points late morning at 15,151.39.
Earlier, Statistics Canada reported that 35,400 positions were created during January, far higher than the 4,500 that economists had expected. However, the agency said the gains were the result of more part-time work. The unemployment rate declined 0.1 percentage points to 6.6 per cent.
The Canadian dollar was lower after jumping almost a cent Thursday, off 0.55 of a cent to 79.94 cents (U.S.).
The U.S. dollar strengthened after the U.S. Labor Department reported total employment gains of 257,000 last month, well above the approximately 233,000 positions that economists had expected. The jobless rate edged up to 5.7 per cent from 5.6 per cent.
New York markets were modestly higher as traders considered whether the strong jobs data makes a rate hike this year by the U.S. Federal Reserve more of a certainty.
The Dow Jones industrials gained 47.42 points to 17,932.3, the Nasdaq edged up 16.74 points to 4,781.84 and the S&P 500 index rose 7.67 points to 2,070.19.
The TSX was boosted by a 0.55 per cent gain in the energy sector as oil prices rose for a second day with the March contract in New York ahead 73 cents to $51.21 (U.S.) a barrel.
Prices have been volatile this week as traders tried to assess whether they have bottomed after plunging 50 per cent since the highs of last June.
But analysts say it is far too early to say that oil prices are finally on the upswing.
"The good news is you're starting to see some volatility and up days – we weren't seeing any up days," said Kevin Headland, director, portfolio advisory group at Manulife Asset Management.
"So now we're trying to find that floor but I would say there is a large potential to retest the lows and even hit lower lows before we see a reversal and get a trend to the upside."
Financials were also a major support, ahead 1.8 per cent while industrials were ahead one per cent.
The gold sector was the biggest decliner, down 4.8 per cent as bullion prices fell sharply after the release of the U.S. jobs data. April gold faded $30.60 to $1,232.10 an ounce.
The base metals sector also dragged, down 1.5 per cent while March copper was off two cents to $2.57 a pound.
In earnings news, Domtar Corp. had $71-million or $1.10 per share of net income in the fourth quarter and $1.379-billion in sales, both up from a year earlier. Ex-items, the Montreal-based paper company had $91-million or $1.41 per share of adjusted earnings, well ahead of the 92 cents that analysts had expected and its shares ran up $3.71 (Canadian) or 7.75 per cent to $51.50.