Canadian stocks will look to end what has been a positive week on a high note Friday morning after pulling back in the previous session.
Bay Street will be keeping a close eye on the monthly US employment report, while mulling over the results on the jobs situation released by Statistics Canada earlier this morning.
On Thursday, the S&P/TSX Composite Index surrendered 176.38 points or 1.73% to 9,967.05. The index had ended Wednesday's session above 10,000 for the first time since November.
Friday's outlook is sunnier after the release of data showing Canadian employment grew by 36,000 in April, the result of an increase in self-employment.
Financials will be in play after the tests performed by US regulators showed half of the country's biggest financial institutions need to improve their capital positions in order to ensure that they can weather a further downturn in the economy.
The results of the US government's stress test showed that 10 of the 19 banks tested need to raise a total of $74.6 billion. The banks involved in the exercise account for two-thirds of the assets and more than half the loans in the U.S. banking system.
The biggest requirement comes for Bank of America (BAC: News ), which regulators say needs to raise nearly $34 billion. Wells Fargo (WFC: News ), GMAC and Citigroup (C: News ) are other big-name financial institutions that need to improve their capital position, the stress test results show.
In Canadian news, gold producer Eldorado Gold Corp. (ELD.TO) posted first quarter net income of US$13.1 million or US$0.04 per share, compared to US$20.7 million or US$0.06 per share in the prior year quarter.
Revenue for the quarter decreased to US$52.4 million from US$72.4 million in the year-ago quarter.
Credit Suisse downgraded Kinross Gold Corp. (K.TO) shares to Neutral from Outperform and lowered its price target to C$20 from C$21. The brokerage reduced its 2009 EPS estimate to C$0.50 from C$0.61, and its 2010 estimate to C$0.51 from C$0.71.
Kingsway Financial Services Inc. (KFS.TO) reported first quarter net loss of US$58.3 million or $1.06 per share, compared with a net loss of $34.4 million or $0.62 per share in the first quarter of 2008.
The loonie continued its assault on the dollar, trading near a 6-month high of $1.1600 as the price of oil held above $57 a barre
All eyes are on the US government's monthly jobs report, set for release at 8:30 am ET. The employment report is expected to show a decrease of about 600,000 jobs.
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