TORONTO - The Toronto stock market was slightly lower in morning trading on Friday, echoing a modest downturn on U.S. markets as investors digested a weak showing in the latest U.S. jobs data and factory orders.
The S&P/TSX composite index was off 8.24 points at 11,286.18 following the Canada Day holiday Thursday, during which Canadian markets were closed.
The Canadian dollar rose to 94.16 cents US, up 0.23 of a cent from Wednesday's close. The Bank of Canada did not monitor electronic trading during the holiday.
The U.S. Labour Department reported that the unemployment rate fell to 9.5 per cent in June, its lowest level in nearly a year. But American employers slashed 125,000 jobs last month, the most since last October, driven by census layoffs, marking the third straight disappointing report on the labour market.
The jobs survey is influential on stock markets as it provides insight into how well the world's largest economy is faring in its attempt to recover from the recession.
Meanwhile, the U.S. Commerce Department said orders for manufactured goods decreased by 1.4 per cent in May, the biggest drop since March 2009 when major stock indexes hit a 12-year low.
New York's Dow Jones industrial average inched down 17 points to 9,716. The Nasdaq composite index lost four points to 2,098 while the S&P 500 index was flat at 1,026.
The TSX Venture Exchange lost 22.62 points to 1,393.34.
TSX metals and mining stocks were up 1.3 per cent in the wake of a retreat by the Australian government from a planned 40 per cent tax on booming profits in the mining industry.
Mining companies had campaigned mightily against the proposed tax, and it was a key factor in the sudden ouster of Kevin Rudd as prime minister after he refused to negotiate. Friday's announcement from new Prime Minister Julia Gillard effectively removed the issue from the political agenda.
The energy sector was up 0.8 per cent even as the August crude contract on the New York Mercantile Exchange slipped 39 cents to US$72.56 a barrel.
Gold stocks slipped 3.4 per cent as the August bullion contract in New York declined $1.20 to US$1,205.50 an ounce. Barrick Gold Corp. (TSX:ABX) fell $1.72 to C$46.60.
In Canadian corporate news, Atlantic Power Corp. (TSX:ATP) says it will buy a 27 per cent interest in Idaho Wind Partners 1, which owns 11 wind farms in Idaho, for $40 million. Its shares were down nine cents to $12.29.
Lions Gate Entertainment Corp. (NYSE:LGF) has adopted a shareholder rights plan or "poison pill" to fend off unwanted takeovers, a day after billionaire activist investor Carl Icahn disclosed he owns about 33.9 per cent of the film producer and distributor's stock.
Overseas, Britain's FTSE 100 rose one per cent, Germany's DAX index gained 0.1 per cent, France's CAC-40 rose 1.1 per cent and Japan's Nikkei stock average rose 0.1 per cent.
