Markets go higher on energy metals sectors after weak US jobs report

Markets go higher on energy, metals sectors after weak U.S. jobs report by David Friend, The Canadian Press Posted Oct 2, 2015 7:00 am MDT Last Updated Oct 2, 2015 at 3:20 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email TORONTO – The Toronto stock market got a bump on Friday as strength in the metals and mining and energy sectors helped overshadow a weak U.S. jobs report.The S&P/TSX composite index reversed an early decline to rise 97.85 points to 13,339.74, closing out a volatile week that remained locked on concerns about the ripple effects of China’s struggling economy.But traders shifted their attention on Friday morning to a surprisingly bad report from the U.S. Labor Department. Employers added 142,000 workers in September, a much lower figure than the 200,000 anticipated on Wall Street.The unemployment rate stayed at 5.1 per cent, but that was only because many Americans stopped looking for work.The data was immediately regarded as dismal and it sent U.S. government bond prices higher, driving down the American dollar against most other major currencies. That included the loonie, which rose 0.52 of a U.S. cent to 75.96 cents.Throughout the day that pessimistic sentiment appeared to fade, helped by a climb in commodities stocks.“There were some people who thought the jobs number was going to create more uncertainty about timing — and the market would react negatively,” said Norman Raschkowan, senior partner at Sage Road Advisors.“But the negative initial response didn’t last.”The TSX energy sector gained 2.6 per cent as the November contract for benchmark crude oil advanced 80 cents to settle at US$45.54 a barrel. The November contract for natural gas added two cents to US$2.45 per thousand cubic feet.December gold futures gained two per cent, or $22.90, to US$1,136.60 an ounce.In New York, the Dow Jones industrial average rose 200.36 points to 16,472.37, while the broader S&P 500 added 27.54 points to 1,951.36 and the Nasdaq gained 80.70 points to 4,707.78.Meanwhile, sentiment also turned positive among some investors who reasoned that the U.S. Federal Reserves was unlikely to raise interest rates any time soon as a result of the weak American jobs numbers. Among other things, Fed chairwoman Janet Yellen has said the U.S. central bank wants to ensure the employment market is on a solid footing before raising rates.The Fed has kept its trend-setting policy rate at historical lows near zero since the Great Recession, a move that is credited with helping provide some of the liquidity that has fuelled the recovery on equity markets.In corporate news, layoffs were taking place on both sides of the border with the National Bank of Canada (TSX:NB) saying it would cut several hundred jobs as part of a restructuring resulting from the economic slowdown.In the U.S., Wal-Mart laid off 450 workers at its Bentonville, Ark. headquarters as the retailer looks for ways to compete, particularly with e-commerce retailers like Amazon.com.— With files from The Associated PressNote to readers: This is a corrected story: A previous version had an incorrect figure for the natural gas contract. read more

Fiat Chrysler to halt use of dangerous air bag inflators

DETROIT – By next week, Fiat Chrysler plans to stop producing new vehicles in North America with the most dangerous type of Takata air bag inflators.The company says its factories will stop using inflators that don’t have a chemical drying agent. Inflators with a drying agent have been shown in tests to be much safer.Takata inflators can explode with too much force and send shrapnel into drivers and passengers. At least 11 people have died worldwide due to the problem. Automakers are recalling up to 69 million inflators in the U.S. without the drying agent. Inflators with the drying agent also could be recalled in a few years if Takata can’t prove they are safe.FCA expects to stop using inflators without the drying chemical in global production by mid-September.The passenger-side air bag on the 2016 Jeep Wrangler is the last FCA inflator in use in North America without a drying agent. FCA says it’s unaware of that part failing.Members of Congress have criticized automakers for selling vehicles that have Takata inflators without the drying agent because eventually they will have to be recalled.Takata uses the chemical ammonium nitrate to create a small explosion to fill air bags in a crash. But over time and when exposed to high heat and humidity, the chemical can deteriorate and burn too fast. It then can blow apart a metal canister designed to contain the explosion.The U.S. National Highway Traffic Safety Administration concedes that new cars with Takata inflators that don’t have the drying agent will have to be recalled. But the agency says it takes at least six years for ammonium nitrate to deteriorate and pose a danger. The agency has a schedule to recall all inflators without the drying agent during the next three years.Recalls have been slowed because Takata and other inflator manufacturers can’t make replacement parts fast enough. by The Associated Press Posted Jun 21, 2016 9:28 am MDT Last Updated Jun 21, 2016 at 1:40 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Fiat Chrysler to halt use of dangerous air bag inflators read more