Bay Street Seen Opening On Mixed Note; Canada Job Data, U.S. PPI Report Eyed

(RTTNews) - Canadian shares are likely to open on a mixed note Friday morning, tracking the trend in commodities markets and reacting to the nation's employment data and U.S. producer price inflation report, as well earnings updates from Goldman Sachs and Wells Fargo.

Goldman Sachs and Wells Fargo reported a drop in third quarter earnings, despite the numbers beating estimates.

Canadian employment data for the month of September is due at 8:30 AM ET. Data on average hourly earnings and Canadian building permits are also due at 8:30 AM ET.

Employment in Canada rose by 22,100 in August 2024, following a 2,800 decline in the previous month. The unemployment rate in the country rose to 6.6% in August from 6.4% in the earlier month.

Average hourly earnings in Canada increased to C$36.39 in August over the previous month.

MTY Food Group Inc. (MTY.TO) reported third-quarter net income of $34.9 million, or $1.46 per diluted share compared to $38.9 million, or $1.59 per diluted share in the third-quarter of the previous financial year.

Aritzia Inc (ATZ.TO) reported after trading hours on Thursday that its net income increased 404.6% to $18.2 million, or 3.0% as a percentage of net revenue in the second quarter of 2024.

The Canadian market climbed to a new record high on Thursday, lifted by gains in energy and materials sectors. The mood remained positive amid continued optimism about interest rate cuts by the Federal Reserve, although prospects of a 50-basis point cut dimmed after data showed a bigger than expected increase in U.S. consumer price inflation in the month of September.

The benchmark S&P/TSX Composite Index, which dropped to 24,134.87 after opening with a negative gap of nearly 50 points at 24,176.40, climbed to a new high at 24,315.49 before settling at 24,302.26 with a gain of 77.36 points or 0.32%.

Asian stocks ended mixed on Friday as investors waited to see whether Beijing will deliver more fiscal stimulus at a press conference by the finance ministry on Saturday.

The dollar weakened and gold prices surged as fresh signs of U.S. labor market weakness spurred hopes for more rate cuts.

Oil eased after a rally in the previous session but was on course for a second straight weekly gain on concerns about crude oil supply disruptions stemming from tensions in West Asia.

European stocks are turning in a mixed performance with investors digesting mixed regional data and looking ahead to a weekend press briefing from China's finance minister, where details on the country's fiscal policy adjustments geared towards fostering economic revival will be revealed.

In commodities, West Texas Intermediate Crude oil futures are down 0.72 or 0.95% at $75.13 a barrel.

Gold futures are gaining $16.50 or 0.62% at $2,655.80 an ounce, while Silver futures are up $0.105 or 0.34% at $31.345 an ounce.