TORONTO, Nov 7 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE is set to fall on Friday as economic downturn fears mounted with steep monthly job losses in the United States.
While Canada unexpectedly added jobs in October, the U.S. jobs report will likely be in the forefront along with the movements in the price of oil, which have seen its gains to above $62 a barrel nearly evaporate.
Canadian corporate results were mixed on Friday.
The index dropped more than 3 percent on Thursday, extending losses for a second consecutive day, as energy and materials issues fell along with slumping commodity prices.
Here is some of the news that may affect the market.
Canada’s economy added 9,500 jobs in October, defying expectations of a 10,000 drop, though the increase largely reflected a big jump in employment linked to the federal election [ID:N07446427]. Meanwhile, the U.S. report showed U.S. labor markets were sharply deteriorating as 240,000 jobs were lost in October, much more severely than expected, and September was revised lower. [ID:nN06438380]
Canada’s No. 2 phone company reported lower quarterly profit, partially because of an unfavorable after-tax adjustment. Telus Corp (T.TO) said wireless revenue grew 9 percent on record year-to-date subscriber growth. It also raised its dividend. [ID:nWNAB0191]
Publishing and media group Quebecor Inc (QBRa.TO) swung to a quarterly profit, helped by customer growth at its cable segment, but said results at it Sun Media newspaper chain had been disappointing. [ID:nBNG247741]
Air Canada ACa.TO swung to a loss in the third quarter as fuel expenses rose 49 percent, the country’s largest carrier said. Excluding items, the airline posted a loss of 45 Canadian cents a share, compared with analysts’ expectations it would earn 38 Canadian cents a share. [ID:nBNG258533]
RBC cut the price target of Canadian Natural Resources (CNQ.TO) to C$62 from C$64 after the company was the latest in the oil and gas sector to announce delays in oil sands projects as costs for labor and materials have stayed stubbornly high. Canadian Natural’s president is concerned that other producers in the Alberta oil sands will rush back to develop deferred projects once oil prices rebound and costs ease, extending a vicious cycle, he said in an interview with Reuters. [ID:nN06322857]
Coffee and doughnut chain Tim Hortons THI.TO reported higher quarterly profit. Same-store sales rose 3.8 percent in Canada, but slipped 0.6 percent in the United States. Tim Hortons said it does not expect to hit its 2008 same-store sales target in the U.S. of 2 percent to 4 percent growth, but will exceed the restaurant expansion target of 90-110 locations. [ID:nWNAB0085]
$1=$1.18 Canadian Reporting by Ka Yan Ng