Friday, May 5, 2006, 4:15 PM EDT (Thomson Financial Corporate Group):
Canada's benchmark index rose more than 100 points, as record copper and
zinc prices lifted metal and mining shares. The financial sector also
strongly boosted the broader market. U.S. stocks surged, supported by
economic data showing the U.S. economy added fewer jobs than expected,
which in turn raised hopes for a pause in interest rate hikes.
* The S&P/TSX Stock Exchange Composite Index rallied 144.24 points, or
1.19%.
* Topping economic headlines, the Canadian economy created a greater-than-
expected 22,000 jobs in April as the struggling manufacturing sector
surprisingly added to payrolls, Statistics Canada reported. The jobless
rate edged up a notch to 6.4%, after sitting at a 31-year low, as more
people sought employment.
* In the U.S., new hiring slowed in April as employers added just 138,000
people to their payrolls, the slowest pace of job growth in six months.
The unemployment rate remained at 4.7% as expected.
* Crude-oil futures were little changed after dropping earlier this week
on U.S. inventory data that showed an unexpected increase in gasoline
stockpiles.
* In commodities, copper and zinc rose to records, while gold climbed to
yet another 25-year high on increased demand from large-scale investors.
Gold drew support from a U.S. jobs report that sent the euro soaring to
a one-year high.
* In corporate news, Four Seasons Hotels Inc. ended higher after releasing
higher-than-expected earnings that more than doubled. The firm's profit
jumped to US$0.36 a share, compared to US$0.14 a share a year earlier.
Sales slipped to US$57.6 million from US$63.1 million last year.
* Technology stocks were one of the weaker spots on the market today,
partly due to a plunge in Open Text Corp. Yesterday, the business
software company increased its quarterly profit but missed analysts'
forecasts. Several investment firms downgraded Open Text following the
report.
* Despite natural gas price-hedging losses and a late planting season that
drove Agrium Inc. to a first-quarter net loss of US$48 million, shares
ended today's session higher. The firm issued upbeat guidance for the
second quarter, seeing US$1.02 a share to US$1.12 a share due to a
strong spring season and an expected benefit from its Royster-Clark
acquisition.
* Meanwhile, U.S. private equity firm Madison Dearborn LLC is the main
bidder for nursing home operator Extendicare Inc. in an auction that has
attracted enormous interest from deep-pocketed funds, the Globe and Mail
reported. Extendicare shares climbed on the news.
-- Michael.O'Brien@contractor.thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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