By James Langton
(November 5 – 13:00 EST) –
Canada’s jobs report generated a
spectrum of reactions. Some market
watchers predict moderate inflation
pressures. Some expect a unilateral
rate hike from the Bank of Canada,
regardless of the U.S. Federal
Reserve Board’s next move.
Markets rallied strongly at the
open, and then settled. The TSE
300 is up about 47 points at
midday. Volume has been rather
strong at more than 63 million
shares, with the action skewed
more than 2:1 in favour of buyers.
Advancers and decliners are more or
less in lockstep. For a change
the number of new highs is matching
the number of new lows.
On a sector-by-sector basis the
market isn’t seeing unanimous
bullishness – five of the TSE’s
14 groups are down, led by the
miners and golds. Industrials are
leading the way up, and indeed
all the volume leaders are trading
to the upside.
Air Canada is once again
the hottest trade on the street –
2.5 million shares have changed
hands, after Onex Corp.
upped its offer again. The
competing deals go to shareholders
on Monday. Air Canada management is
currently mulling Onex’s offer,
the latest in this increasingly
bitter fight. So far today, the
airline’s stock is up just 15¢ to
$11.00.
Nortel is enjoying a
strong trade today, as are TD Bank
and its discounter,
TD Waterhouse. After being
talked up by some Wall Streeters
this morning Waterhouse has
rocketed up more than 18% to
$22.05. Other popular tech stocks
are joining the party too.
JDS Uniphase, Celestica and
Research in Motion are all
generating lots of buyers.
Montreal’s rally has been more
subdued. It is up just seven
points so far. While the small
cap exchanges – Alberta and
Vancouver – are both on the
downside today, each off less
than a point.
Wall Street rallied hard at its
open too, but is also coasting
toward a mellow Friday close.
The Dow is up more than 100 points
at midday. Nasdaq is strutting
confidently above 3000, up
another 40 points to just under
3100. The S&P has gained 14
points.