TSX Ends Higher On Upbeat Jobs Data - Canadian Commentary

(RTTNews) - The Toronto stock market's benchmark index closed higher on Friday, ending three straight sessions of losses, as upbeat jobs reports from both sides of the border lifted investor sentiments.

Statistics Canada said the country's economy created 22,000 jobs in November, helping the unemployment rate to remain steady at 6.9 percent. Economists expected only 12,000 job additions in November.

From south of the border, the U.S., Labor Department said non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October. Economists had been expecting employment to increase by about 180,000 jobs compared to the addition of 204,000 jobs originally reported for the previous month. With the stronger than expected job growth, the unemployment rate pulled back to 7.0% in November from 7.3% in October.

Thomson Reuters and the University of Michigan also released a report showing that U.S. consumer sentiment has improved by much more than anticipated in the month of December. The report said the preliminary reading on the consumer sentiment index for December jumped to 82.5 from the final November reading of 75.1. Economists had been expecting the index to edge up to 75.5.

The S&P/TSX composite index closed 80.32 points, or 0.61%, higher at 13,280.72, with intraday low of 13,200.64 and high of 13,313.62. Six of the 10 main sectors on the index were higher.

Financial services provider Scotiabank (BNS.TO) rose 1% after the company reported higher fourth quarter profit.

Among other financial stocks, Canadian Western Bank (CWB.TO) jumped 3.2%, while Royal Bank of Canada (RY.TO) and TD Bank (TD.TO) rose 1.3% and 1.1%, respectively.

Crude for January delivery rose $0.27 to $97.65 a barrel on the New York Mercantile Exchange, its sixth consecutive session of gains, after the U.S. jobs report was released. Crew Energy (CR.TO) rose 2.6% and MEG Energy (MEG.TO) climbed 3.1%.

Gold for February closed $2.9 lower at $1,229.0 an ounce after trading higher earlier in the session.

Bombardier Inc. (BBD_A.TO, BBD_B.TO) rose 1.7% after the company said its unit Bombardier Aerospace has got orders for Q400 NextGen aircraft from Nantong Tongzhou Bay Aviation Industry Co., Ltd, valued at about $995 million.

Steel structures company ADF Group. (DRX.TO) surged 7.7% after the company said it swung to a third quarter profit.

In the U.S. markets, major averages closed firmly in positive territory, with the Dow and the S&P 500 back above key psychological levels. The Dow surged up 198.69 points or 1.3% to 16,020.20, while the Nasdaq advanced 29.36 points or 0.7% to 4,062.52 and the S&P 500 jumped 20.06 points or 1.1% to 1,805.09.