TSX up slightly on North American data, TMX Group, Osisko in focus
Toronto's main market edged up Friday afternoon, as jobs numbers in Canada and better than expected US economic data worked to offset a $2 billion trading loss at JPMorgan Chase (NYSE:JPM).
As of after 12:00pm ET, the S&P/TSX Composite was up 39.87 points, or 0.34%, to 11,776.04, while the more junior S&P/TSX Venture Composite fell 5.21 points, or 0.38%, to 1,350.10.
Commodities were all down Friday as worries about weaker-than-expected economic growth in China weighed on investors. A report today showed a drop in the rate of industrial production growth in China.
Gold for June delivery was down $11.4 to $1,584.10 an ounce, while crude oil for June shed 40 cents to $96.68 a barrel. Silver futures fell 0.9% to $28.92 an ounce, while the base metal copper contract edged down 1.19% to $3.65 a pound.
In Toronto, the biggest gainers were financials, while energy stocks also rose. Materials were down slightly.
In mining, Kinross Gold (TSE:K) rose 1.2%, while Barrick Gold (TSE:ABX) edged down 0.66% and First Quantum Minerals (TSE:FM) gained 1.6%.
Weighing down the materials sector, Osisko Mining (TSE:OSK) dropped more than 10% after the company reported a fire at its Canadian Malartic gold mine shut down operations, despite reporting a profit and ramped up production on Thursday.
Eastern Platinum (TSE:ELR) also dropped more than 5.6%.
In energy, Talisman Energy (TSE:TLM) and Suncor Energy (TSE:SU) were down 1.3% and 0.17%, respectively, while Crew Energy (TSE:CR) rallied more than 6%.
Financials were on the up as insurer Sun Life Financial (TSE:SLF) rose 4.5% a day after reporting positive quarterly results, and Manulife (TSE:MFC) rose 1.64%. Royal Bank of Canada (TSE:RY) also advanced 0.52%.
In corporate news, Enerplus Corp (TSE:ERF) Friday reported a loss in its first quarter as prices of dry gas and natural gas liquids fell, and the Canadian company said is prepared to reduce spending and sell assets to "maintain a strong financial position."
For the period ended March 31, Enerplus posted a net loss of C$33.8 million, or 18 cents per share, compared with a profit of C$29.5 million, or 17 cents per share a year earlier.
Celtic Exploration (TSE:CLT) also posted a first-quarter loss on lower gas prices and lowered its production forecast due to gas plant outages in Alberta.
TMX Group (TSE:X) said Friday its first quarter profits dropped 10 percent on lower revenue from its listing business and cash markets trading, falling well below analysts’ estimates.
Miranda Technologies (TSE:MT) said fiscal first-quarter profit slumped due to higher share-based compensation costs and expenses from its strategic review initiative, which masked a seven percent rise in revenue.
On the economic front, Statistics Canada reported that employment increased by 58,000 in April, mostly in full-time work, but the unemployment rate also rose by 0.1 percentage points to 7.3%.
US/Europe
US markets rose Friday, as better than expected economic data overshadowed JPMorgan's damaging news. The Dow was lately up 0.26%.
JPMorgan Chase said late Thursday that a $2 billion trading loss will impact its second-quarter earnings. Shares tumbled more than 7.3% on the news.
The bank's chief executive Jamie Dimon cited "errors" and "bad judgment" in trades meant to hedge risk and said the losses could deepen this quarter and beyond.
JPMorgan now expects to lose $800 million within the corporate/private equity segment, down from prior guidance of net income of $200 million.
Investors are now worried whether conditions since April could cause more unreported losses at other banks.
But stocks were lifted by an index of consumer confidence that rose to a four-year high in May.
The Reuters/University of Michigan consumer sentiment index for May rose to 77.8 from 76.4 in April, to the highest level since January 2008. Economists surveyed by Briefing.com predicted the index to come in at 75.
Wholesale prices were down 0.2% in April on lower energy prices, according to the Labor Department's producer price index. Economists surveyed by Briefing.com had expected prices to be unchanged from March. However, excluding volatile food and energy prices, core wholesale prices were up 0.2%, matching forecasts.
In corporate news, Graphics chip maker Nvidia Corp. (NASDAQ:NVDA) reported a sharp drop in fiscal first-quarter profit and sales, but it forecasted second-quarter revenue ahead of analyst estimates. Shares of the company rallied.
Meanwhile, Sony (NYSE:SNE) shares tumbled more than 7% in the US as it reported lower earnings after the close of the market in Tokyo on Thursday.
High-end retailer Nordstrom (NYSE:JWN) said Thursday late afternoon that first quarter earnings rose 2.8 percent, missing expectations, as free shipping initiatives ate into margins.
For the period that ended April 28, Nordstrom reported net income of $149 million, or 70 cents per diluted share, in comparison to last year’s earnings of $145 million, or 65 cents per diluted share.
The latest results are five cents below the projected earnings polled by Thomson Reuters.
In Europe, Greek politicians are still attempting to form a coalition government, throwing its European bailout into uncertainty.
Spain, meanwhile, announced Friday plans for banks to set aside another 30 billion euros in reserves to offset potential real estate loan losses, with the government to hire independent auditors to review Spanish banking assets. The reforms come just days after the country part-nationalized one of its largest banks.
European markets finished mixed as of the most recent closing prices. The DAX in Germany gained 0.95% and the FTSE 100 in Britain rose 0.65%. The CAC 40 in France lost 0.01%.
