Stock market: the winners and losers of May 3

(Illustration: Camille Charbonneau)

Toronto — Canada’s main stock index rose Friday, led by strength in base metals, utilities and telecommunications, while U.S. markets rallied after the latest jobs report was less favorable than expected .

Markets rose Friday following the release of the latest US employment report, which fell well short of expectations, says Andrew Buntain, vice-president and portfolio manager at Fiduciary Trust Canada.

“The financial markets have certainly reacted vigorously in North America, on the stock market and with a fall in bond yields,” says Mr. Buntain.

The labor market created 175,000 jobs in April, down sharply from March and well below the 233,000 expected by economists. The unemployment rate also increased to 3.9%, and the average hourly wage increased less than expected.

For market watchers hoping for interest rate cuts, bad economic news is good news, Mr. Buntain argues, because the central bank has delayed any reduction due to lingering economic resilience.

“There was a lot of excitement in the market today about the jobs report. Whether this will last or not remains to be seen, but it has been widely welcomed by the entire market,” he says.

Friday’s report puts an interest rate cut by the US Federal Reserve on the table for September, Buntain said. According to him, the employment data are satisfactory for the Fed while they are neither too favorable nor too unfavorable.

“And I think the market agrees,” he says.

The gains were led by the Nasdaq, which jumped just under 2%. Apple shares rose nearly 6% after the company announced a major stock buyback. Microsoft rose 2.2% while Nvidia rose 3.5%.

In Canada, on the other hand, an interest rate cut in June seems increasingly likely, says Mr. Buntain, because the Canadian economy is much more sensitive to interest rates.

“We are still very sensitive to the fact that mortgage interest costs represent the largest part of our CPI (Consumer Price Index),” he analyzes.

– With the Associated Press

Rosa Saba, The Canadian Press

Here are the winners and losers for May 3, 2024:

The S&P/TSX index of the TSE
Price Variation ($CAN) Change (%)
Winners
NFI Group (NFI) 12.88 1.60 14,184
NioCorp Developments (NB) 3.43 0.37 12,092
First Quantum Minerals (FM) 18.58 1.80 10,727
Losers

Open Text (OTEX)

41.38

-7.16

-14,751
Colabor Group (GCL) 1.07 -0.14 -11.57
Stella-Jones (SJ) 72.49 -7.51 -9,387

Only titles worth more than $1 are considered in the Winner/Loser ranking.

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