Bay Street May Open Higher On Firm Oil Prices; Jobs Data, Earnings In Focus

The Canadian market may open with a positive bias on Friday with higher crude oil prices likely to trigger some strong buying in the energy sector. However, Canadian jobs data for the month of January, and earnings updates are set to determine the market’s trend.

Canadian employment data for the month of January is due at 8:30 AM ET. A report on average hourly wages for the month of January is also due at 8:30 AM ET.

Employment in Canada edged up marginally in December following an addition of 24,900 jobs in November. The unemployment rate in Canada was at 5.8% in December, unchanged from the 22-month high recorded in the previous month.

In earnings news, Magna International Inc. (MG.TO) reported a net income of $271 million for the quarter ended December 2023, compared to net income of $95 million in the corresponding quarter of the previous year.

Saputo Inc. (SAP.TO) reported that its net loss for the third quarter of fiscal 2024 was C$124 million, compared to net earnings of C$179 million for the same quarter last fiscal year. Adjusted net earnings for the third quarter of fiscal 2024 totalled C$163 million, down 26.2% from C$221 million for the same quarter last fiscal year.

Fortis Inc. (FTS,FTS.TO) reported fourth quarter net earnings of C$381 million, or C$0.78 per share, compared to C$370 million or C$0.77 per share for the same period in 2022.

TELUS Corporation (T.TO) reported fourth-quarter operating revenues and adjusted EBITDA growth of 2.6% and 9.4%, respectively. The company’s fourth-quarter net income was up 17% from a year ago.

After a weak start and a subsequent sharp fall Thursday morning, the Canadian market recovered slowly as the day progressed, but still ended the session on a negative note as losses in communications and utilities sectors offset gains in energy, technology and realty sections.

Uncertainty about the outlook for U.S. interest-rate trajectory, and some disappointing earnings updates weighed on the market.

The benchmark S&P/TSX…