Post-holiday blahs for TSX

Canadian stocks are seeing weakness in early trading as commodities continued a downward move. A discouraging employment report may lead to some declines on both sides of the border.

The S&P/TSX Composite Index had slid 149.61 points, in the first few minutes of trading, to 10,225.30. Investors returned to their desks after taking Canada Day off yesterday. Volume still may be lighter than usual as U.S. traders will be off tomorrow in observance of Independence Day.

Crude oil prices are down more in electronic trading, while gold is down and copper has lost 5.5 cents to $2.2755 U.S. a pound.

In corporate news, oil and gas explorer Gastar Exploration Ltd. announced Thursday that it has agreed to sell its entire interest in petroleum exploration licenses in New South Wales, or NSW, Australia and the shares of Gastar Power Pty Ltd. to affiliates of Santos Ltd. for an aggregate amount of $240 million U.S.

Bombardier said Tuesday that it had signed a contract with the Toronto Transit Commission for the supply of 100% low-floor streetcars – 204 in all - to replace the City of Toronto's aging fleet of vehicles.

Magna International could face a rival bid from Beijing Automotive Industry Holding Co. in its effort to acquire Opel, according to the Globe and Mail.

The Canadian dollar was down 0.52 cents to 86.48 cents U.S.

ON BAYSTREET

Of the 14 TSX subgroups, 11 were negative. Energy issues took the biggest hit, at 3%, followed by global base metals, off 2.5% and information technology, declining 1.6%.

The three gainers were health-care stocks, nipping ahead 0.3%, and telecoms and consumer staples, each gaining 0.1%.

The TSX Venture Exchange slipped 8.18 points, to 1,083.79, while the Nasdaq Canada Index gave back 10.26 points to 673.78

ON WALLSTREET

In New York, stocks opened lower Thursday, the end of a holiday-shortened week, after a dismal monthly jobs report quashed hopes for a near-term recovery.

The Dow Jones Industrials average tumbled 150.24, to 8,353.82. The S&P 500 index faltered 17.23 points to 906.10. The Nasdaq gave back 37.35 points to 1,808.37.

The June employment report from the Labor Department showed a net loss of 467,000 jobs in June, compared with 322,000 in May. That's the first time in four months that the number of jobs lost rose from the prior month, and the cuts were far worse than the forecast of 365,000.

The unemployment rate, generated by a separate survey Thursday, rose for the ninth straight month, climbing to 9.5% from 9.4%. Economists expected the rate to hit 9.6%.

On Wednesday, Wall Street started the third quarter with a modest rally. Reports on manufacturing and housing indicated that the pace of the recession is slowing.

Bankruptcy court hearings are expected to continue Thursday regarding the automaker GM and its plans to form a new company. The deal won't go through without a decision from Judge Robert Gerber of U.S. bankruptcy court in New York.

Lawyers representing dissenters, including unsecured bondholders as well as mechanics who have filed asbestos-related claims against the company, oppose the deal in its current form because they don't want to get left out of the bankruptcy process.

All financial markets are closed Friday for the Independence Day holiday.

Treasury prices hiked a bit, with the yield on the benchmark 10-year note moving down to 3.52%. Treasury prices and yields move in opposite directions.

Oil prices shed $2.40 a barrel to $69.92 U.S.

Gold prices subsided $12 an ounce at $929 U.S.