(Photo: 123RF)
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MARKET REVIEW. The New York Stock Exchange, which briefly hesitated to open on Friday after the very disappointing US jobs report, was trading in the green as these mediocre numbers cast off the specter of inflation and a rate hike. ‘interest.
The Toronto Stock Exchange advanced more than 100 points early Friday, buoyed by gains in the materials and information technology sectors, as the Canadian dollar traded above the 82-cent mark.
The clues
In Toronto, the index S&P/TSX advanced 165 points, or 0.86%, to 19,456 points.
In New York, the S&P 500 took 28 points, or 0.68%, to 4,230 points.
The Dow Jones gained 147 points, or 0.43%, to 34,695 points.
The Nasdaq rose 169 points, or 1.24%, to 13,801 points.
The context
The US economy only created 266,000 jobs in April, a far cry from the million expected by analysts, according to the Labor Department. The unemployment rate rose by a tenth of a percentage point to 6.1% when analysts saw it decline to 5.8%.
Forecasters wondered, “This is a really bizarre report, there is no doubt. Let’s wait until next month, ”JJ Kinahan, chief market strategist for TD Ameritrade, told AFP.
“It is very difficult for analysts to appreciate such a figure, because the States all reopen at very different rates,” he said.
For now, these mediocre job gains in April compared to expectations were seen by investors as a sign that “the economic recovery is not as bright as expected which tempers the possibilities of overheating” and therefore a rise in interest or a change of course in the monetary policy of the US Central Bank (Fed), stressed Mr. Kinahan.
Interest rates close to zero, as they have been since the outbreak of the COVID-19 epidemic in the United States just over a year ago, favor Wall Street investors who find more profits in stocks than bonds.
Bond rates on 10-year Treasury bills tumbled to 1.52% from 1.56% the day before.
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