Canadian Stocks Are Rebounding On Jobs Data -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Friday, as it attempts to bounce back from the sharp declines of the previous two trading sessions. The continued recovery of the Chinese stock market and optimism for a Greek deal are contributing to the positive mood at the end of the trading week. A smaller than expected decrease in Canadian jobs is also providing a boost.

Data from Statistics Canada showed that economy lost 6,400 jobs in June, fewer than expectations for a decline of 10,000 jobs. In May, the economy had created 58,900 jobs. The unemployment rate held steady at 6.8 percent for the fifth consecutive month. Economists were expecting the jobless rate to increase to 6.9 percent in the month.

Markets in Europe are firmly in positive territory Friday, on hopes that Greece will finally be able to reach a new agreement with its creditors. The Greek government offered a cash-for-reforms proposal to creditors that comprises spending cuts and tax hikes in exchange for a third bailout.

Prime Minister Alexis Tsipras' request for at least 53.5 billion euros in bailout funds for the next three years will be presented in the Greek parliament for approval on Friday.

Eurozone finance ministers will meet on Saturday in Brussels to review the Greek request, followed by a summit of European leaders on Sunday to reach a final agreement.

Markets in the United States are also positive in early trade Friday. Easing concerns over Greece and China has investors in a positive mood. Later today, Federal Reserve Chair Janet Yellen will give a speech regarding the U.S. economic outlook.

Wholesale inventories in the U.S. increased by much more than expected in the month of May, according to a report released by the Commerce Department on Friday. The report said wholesale inventories increased by 0.8 percent in May after rising by 0.4 percent in April. Economists had expected inventories to rise by 0.3 percent.

The benchmark S&P/TSX Composite Index is up 83.69 points or 0.59 percent at 14,362.18.

On Thursday, the index closed down 133.58 points or 0.93 percent, at 14,278.49. The index scaled an intraday high of 14,558.69 and a low of 14,275.54.

The Capped Health Care Index is up 1.29 percent. Concordia Healthcare (CXR.TO) is rising by 3.17 percent and Valeant Pharmaceuticals International (VRX.TO) is gaining 2.67 percent. Extendicare (EXE.TO) is climbing by 1.68 percent and Catamaran (CCT.TO) is adding 0.24 percent.

The Capped Information Technology Index is gaining 1.13 percent. BlackBerry (BB.TO) is advancing by 0.30 percent and Constellation Software (CSU.TO) is rising by 2.34 percent. Descartes Systems Group (DSG.TO) is also up 0.45 percent.

The heavyweight Financial Index is climbing by 1.01 percent. National Bank of Canada (NA.TO) is climbing by 0.61 percent and Bank of Nova Scotia (BNS.TO) is advancing by 0.79 percent. Toronto-Dominion Bank (TD.TO) is rising by 1.02 percent and Bank of Montreal (BMO.TO) is increasing by 0.83 percent. Canadian Imperial Bank of Commerce (CM) is up 0.35 percent and Royal Bank of Canada (RY.TO) is higher by 1.03 percent.

The Capped Telecommunication Services Index is rising by 0.80 percent. BCE (BCE.TO) is advancing by 0.91 percent and Manitoba Telecom Services is higher by 0.39 percent. Rogers Communication (RCI-A.TO) is increasing by 0.68 percent and TELUS (T.TO) is adding 0.67 percent.

The Capped Industrials Index is up 0.70 percent. Canadian National Railway (CNR.TO) is up 1.10 percent and Canadian Pacific Railway (CP.TO) is higher by 0.75 percent. Air Canada (AC.TO) is gaining 1.91 percent and Finning International (FTT.TO) is adding 0.13 percent. CAE (CAE.TO) is advancing by 0.99 percent.

The Diversified Metal and Mining Index is advancing by 0.14 percent. First Quantum Minerals (FM.TO) is increasing by 0.32 percent and Lundin Mining (LUN.TO) is rising by 0.40 percent.

Teck Resources (TCK-A.TO) is climbing by 5.68 percent. The company has agreed to sell future output from its Chile mine to Royal Gold for $525 million upfront and 15 percent of monthly average gold price at each delivery.

However, Teck Resources is delaying the start of its Frontier oil sands project by five years amid the outlook for low energy prices.

The Energy Index is decreasing by 0.57 percent. Crude oil prices crept higher for a second day amid optimism that a deal can be reached to keep Greece in the euro zone.

Encana (ECA.TO) is falling by 1.02 percent and Legacy Oil + Gas (LEG.TO) is losing 1.64 percent. Crescent Point Energy (CPG.TO) is down 3.72percent and Cenovous Energy (CVE.TO) is declining by 1.19 percent. Canadian Oil Sands (COS.TO) is surrendering 2.00 percent.

The Gold Index is falling by 0.80 percent. Gold prices were steady Friday morning as traders kept a close eye on developments in Europe, where leaders are making a last-ditch effort to keep Greece in their monetary union.

Goldcorp (G.TO) is down 1.04 percent and Barrick Gold (ABX.TO) is falling by 0.19 percent. Kinross Gold (K.TO) is losing 2.17 percent and Royal Gold (RGL.TO) is declining by 2.18 percent. Eldorado Gold (ELD.TO) is surrendering 1.02 percent and IAMGOLD (IMG.TO) is lower by 3.36 percent.

The Capped Materials Index is down 0.29 percent. Franco-Nevada (FNV.TO) is losing 0.58 percent and Agnico Eagle Mines (AEM.TO) is down 2.15 percent. Silver Wheaton (SLW.TO) is decreasing by 0.77 percent.

DHX Media (DHX-A.TO) is surging by 8.12 percent, after it announced that it will not be proceeding with the public offering of variable voting shares and common voting shares previously announced on July 6, 2015.

Loblaw (L.TO) is up 0.24 percent, after the company reached an agreement to end a labor strike. Employees of 69 Loblaw-owned stores in Ontario markets from Ottawa to Windsor have voted to accept a six-year contract.

Onex (OCX.TO) is gaining 1.47 percent, after it agreed to sell Sitel Worldwide Corp. for approximately US$55 million.

On the economic front, Germany wholesale prices continued to decline in June, figures from Destatis showed Friday. Wholesale prices dropped 0.5 percent year-on-year in June, slightly faster than May's 0.4 percent fall. The wholesale price index has been falling since July 2013.

French industrial output recovered as expected in May, the statistical office Insee reported Friday. Industrial output grew 0.4 percent month-on-month in May, reversing a 0.8 percent fall in April. This was the fastest growth in three months. The monthly rate matched economists' expectations.

Britain's trade deficit in goods in May was the smallest in nearly two years as imports declined and exports remained unchanged, data from the Office for National Statistics showed Friday. The visible trade deficit for May was GBP 8 billion, which was the smallest shortfall since June 2013. It was also smaller than the GBP 9.7 billion deficit predicted by economists.

U.K. construction output declined for the second straight month in May, defying economists' expectations for an increase, data from the Office for National Statistics showed Friday. Construction output fell 1.3 percent month-over-month in May, faster than previous month's 0.5 percent drop. Economists had expected a 0.8 percent climb for the month.

In commodities, crude oil futures for August delivery are down $0.12 or 0.23 percent at $52.66 a barrel.

Natural gas for August is up 0.045 or 1.65 percent at $2.771 per million btu.

Gold futures for August are down $0.60 or 0.05 percent at $1,158.60 an ounce.

Silver for September is up $0.054 or 0.35 percent at $15.415 an ounce.