Canadian Shares Down Sharply As Jobs Data Fuels Rate Hike Concerns

(RTTNews) - Canadian stocks are down sharply in negative territory on Friday with stronger than expected jobs data from Canada and the U.S. raising concerns about more aggressive monetary tightening by the central banks this year.

Healthcare stocks are among the major losers. Technology, materials, consumer discretionary, industrials and financials shares are also down sharply. Energy stocks are bucking the trend, tracking higher crude oil prices.

The benchmark S&P/TSX Composite Index is down 278.51 points or 1.47% at 18,700.50 a few minutes past noon.

Data from Statistics Canada showed the Canadian economy added 21,100 jobs in September of 2022, slightly higher than expectations of 20,000 jobs gained and marking the first rise in employment since May.

The unemployment rate in Canada dropped to 5.2% in September from 5.4% in the previous month.

The U.S. Labor Department's data showed non-farm payroll employment jumped by 263,000 jobs in September after surging by an unrevised 315,000 jobs in August and spiking by an upwardly revised 537,000 jobs in July. Economists had expected employment to leap by 250,000 jobs.

The Labor Department also said the unemployment rate dipped to 3.5% in September from 3.7% in August, while economists expected the unemployment rate to come in unchanged.

The Health Care Capped Index is down nearly 10%. Canopy Growth Corp (WEED.TO) is down 19.7%, Tilray Inc (TLRY.TO) is tumbling 17.5% and Cronos Group (CRON.TO) is down 11.2%. Bausch Health Companies (BHC.TO) is declining 8%, while Bellus Health Inc (BLU.TO) is down by about 2.5%.

Lithium Americas Corp (LAC.TO) is plunging more than 10%. Richelieu Hardware (RCH.TO), Shopify Inc (SHOP.TO) and FirstService Service Corporation (FSV.TO) are down 7.2 to 8.6%.

MTY Food Group (MTY.TO) is down nearly 6%. The company reported Friday that its third-quarter net income attributable to owners reached C$22.44 million or C$0.92 per share, down from last year's C$24.34 million or C$0.98 per share.

BRP Inc (DOO.TO), TFI International (TFII.TO), Colliers International (CIGI.TO), Franco-Nevada Corporation (FNV.TO), Kinaxis Inc (KXS.TO), Fairfax Financial Holdings (FFH.TO), Waste Connections (WCN.TO) and Canadian National Railway (CNR.TO) are down 2 to 4%.

Enerplus Corporation (ERF.TO), Atco Inc (ACO.Y.TO), Canadian Natural Resources (CNQ.TO), Loblaw Companies (L.TO), Tourmaline Oil Corp (TOU.TO), Methanex Corp (MX.TO) and TC Energy Corporation (TRP.TO) are gaining 1.3 to 3%.