Wall Street futures are down in reaction to a weak U.S. employment report released this morning. Only 21,000 jobs were created in February, says the U.S. Labour Department That’s far below economist expectations of 130,000.
Some market analysts are attempting to sugarcoat the poor number saying that other economic signs, such as decreasing jobless claims and moderately improved productivity — reported earlier this week — show the American economy is still improving. But the market start is likely to be negative.
Investors will also be digesting bad news from Intel Corp. On Thursday, the semiconductor giant lowered the midpoint of its first-quarter revenue estimates, saying demand for its microprocessors were at the lower end of seasonal expectations. The company expects sales of between US$8 billion and $8.2 billion in the first quarter, instead of between $7.9 billion and $8.5 billion.
Despite the bad news, overseas markets are higher. In Europe the Paris CAC40 Index is up 9.12 points, or 0.2%, to 3.786.06, this year’s highest level, buoyed by the continued strength of the U.S. dollar against the Euro.
In Frankfurt, the Xetra DAX Index rose 6.77 points, or 0.2%, to 4,140.55. The DAX is being held in check by Deutsche Bank, which fell 3.3% due to rumors of a potential takeover. In London, the FTSE100 Share Index has edged one point higher to 4,560.10.
Overnight in Asia, Tokyo’s Nikkei surged 135.50 points to 11,537.29 Friday — its highest close since June 6, 2002, when it ended at 11,547.94. In Hong Kong, the Hang Seng Index edged up 3.20 points to 13,454.76.
In Canadian business news that could affect markets, the Syncrude oilsands expansion has been delayed by almost a year and will cost $7.8 billion. That’s $2.1 billion over the previous estimate, say Syncrude’s major partners. The northern Alberta energy mega-project expansion will now be completed in mid-2006, says Imperial Oil Ltd. and Canadian Oil Sands Ltd.
The Pengrowth Energy Trust is raising $150.9 million by issuing trust units to Canadian investors. The Calgary energy producer says it has struck a deal to sell 8.2 million trust units at $18.40 each. Finally, CanWest Global is in talks to buy Hollinger International’s Jerusalem Post.
On Thursday, Toronto’s S&P/TSX composite index was down 22.42 points at 8,773.27. In New York, the Dow Jones industrial average fell 5.11 points at 10,588. The tech-heavy Nasdaq composite rose 21.75 points at 2,055.11, while the S&P 500 index edged up 3.84 at 1,154.88.