Canadian Stocks Decline Amid Jobs Data Release, Profit Taking

(RTTNews) - Canadian stocks moved lower on Friday as investors assessed today's employment data that diluted expectations of a Bank of Canada rate cut. In addition, profit takings by traders from yesterday's sharp gains added to the fall.

After opening above yesterday's close, the benchmark S&P/TSX Composite Index gained ground in the early hours of trading before turning lower and trading below the flatline throughout the rest of the session. The index closed at 31,311.41, down by 166.16 points (or 0.53%).

Two of the 11 sectors posted gains today, with the Consumer Discretionary sector leading the pack.

On Thursday, Canadian stocks gained sharply after Canadian lenders posted strong quarterly results. Today, investors opted to book profits from yesterday's gains.

Today, data released by Statistics Canada revealed that the unemployment rate fell to 6.5% in November from 6.9% in October (the lowest in 16 months), contrasting sharply with expectations that it would rise to 7%.

In addition, Canada's employment rose by 54,000 jobs (or 0.3%) in November following an increase of 66,600 jobs in October, better than market estimates of a loss of 5,000 jobs.

Canada's average hourly wages for permanent workers rose 4% year-on-year to C$38.02 in November.

These strong numbers have dampened expectations of another rate cut by the Bank of Canada despite the job gains predominantly being in part-time sector.

According to a Reuters survey, the central bank, which has already instituted rate cuts twice - once in September and another in October - will likely retain the rates steady in the near future.

Canadian Prime Minister Mark Carney is visiting Washington today for a FIFA celebration where he will share the dais with U.S. President Donald Trump and Mexican President Claudia Sheinbaum. The PMO has stated that Carney will meet Trump at Kennedy Center where the event is scheduled.

Canadian officials stated that this visit is only about FIFA soccer, indicating that the chances for a resumption of trade talks between the U.S. and Canada remains low. Of note, Trump has halted all trade talks with Canada.

Most Canadian exports to the U.S. fall under the Canada-United States-Mexico free-trade agreement and consequently circumvent the 35% tariffs imposed by the U.S. on Canadian imports into the U.S.

However, with the CUSMA deal to come up for review next year, Carney is now under pressure domestically to find ways to mend trade ties with the U.S. by enlisting more products in the agreement.

Concerns are rising on CUSMA renewal as Trump recently stated that the U.S. may altogether withdraw from the tripartite deal or seek to amend the clauses.

In the U.S., expectations for a rate cut by the U.S. Federal Reserve have increased with recent economic releases and dovish remarks by several Fed officials in the past few weeks.

Fueling the expectation is the speculation that a low-interest-rate supporter, Kevin Hassett, would be the next Fed Chair.

On the business front today, the Laurentian Bank of Canada reported its fourth-quarter 2025 earnings results which missed market expectations. The bank stated that elevated interest rates and moderated economic activity impacted lending fees which were the key reasons for losses. The fourth quarter earnings per share was C$0.73, falling short of expectations by 6.84%. The bank's revenue decreased by 3% year-over-year to C$983.7 million and the adjusted net income was C$147.2 million.

Major sectors that lost in today's trading were Utilities (0.78%), Industrials (0.82%), Materials (1.11%), and Healthcare (1.45%).

Among the individual stocks, Bausch Health Companies Inc (6.88%), Orla Mining Ltd (11.08%), Seabridge Gold Inc (3.36%), Brookfield Business Partners LP (2.87%), and Transalta Corp (2.16%) were the notable losers.

Major sectors that gained in today's trading were Consumer Discretionary (0.49%) and Financials (0.17%).

Among the individual stocks, TD Bank (1.76%), Bank of Nova Scotia (0.95%), Bank of Montreal (0.80%), Aritzia Inc (1.81%), and Restaurant Brands International Inc (1.29%) were the prominent gainers.

Aecon Group (4.93%), G Mining Ventures Corp (3.27%), and Ats Corp (2.98%) were among the prime market-moving stocks today.