Nov. 6, 2009 (Baystreet.ca) --

Canadian stocks are slightly higher on Friday as record gold prices offset disappointing employment reports. The market is looking for a fourth straight positive close. The S&P/TSX composite index was still ahead 21.59 points by noon to 11.202.29. Following two months of moderate growth, Statistics Canada said Friday morning that employment decreased by 43,000 in October, all in part time. This drop pushed the unemployment rate up 0.2 percentage points to 8.6%. Gold stocks have surged after the precious metal reached above $1,100 U.S. for the first time. Iamgold has gained 5.6%, Royal Gold has added 3.7% and Agnico-Eagle Mines is up 3.2%. Materials stocks are up, also boosted by gold's rally. Agrium has added 1.75% after its latest takeover proposal has been rejected by CF Industries Holdings. SNC-Lavalin has added 2.6% after the company said its third-quarter net income rose to $103.1 million or $0.68 per share from $91.3 million or $0.60 per share in the prior-year period. Suncor reported third-quarter earnings of $929 million for the recent quarter, compared to $815 million last year. The stock is up 0.3%. Air Canada is up 2.7% after the company reported that its third-quarter net income was $277 million or $2.44 per share, compared to a loss of $132 million or $1.32 per share in the same quarter last year. Kingsway Financial Services has dropped 6.6% after the company reported third quarter net loss of $118.13 million U.S. or $2.19 U.S. per share, compared to net loss of $17.4 million U.S. or $0.32 U.S. per share last year. Brookfield Asset Management fell 2.7% after the company reported its net income for the third quarter dropped to $112 million U.S. or $0.17 U.S. per share from $171 million U.S. or $0.27 U.S. per share in the same quarter last year. The Canadian dollar was off 0.47 cents to 93.33 cents U.S. ON BAYSTREET Of the 14 TSX subgroups, nine gained ground. Gold jumped 2.7%, followed by consumer discretionary stocks, up 1.6%, and materials, ahead 1.5%. Real-estate took the biggest hit of the five losing groups, off 1.1%, while financials slid 0.6% and consumer staples slid 0.4%. The TSX Venture Exchange moved up 4.88 points to 1,336.43, while the Nasdaq Canada index tailed off 4.60 points to 629.70. ON WALLSTREET In New York, stocks zigzagged early Friday in a choppy session in which investors mulled a weaker-than-expected October jobs report that saw the unemployment rate spike to a 26-year high. Falling oil prices also played a role in morning trading. The Dow Jones Industrials nipped up 1.44 points at noon to 10,007.40. The S&P 500 index lost 0.29 points to 1,006.34, while the Nasdaq composite index was up 0.38 points to 2,105.70. The Labor Department reported that payrolls fell by 190,000 jobs in October and the unemployment rate rose to 10.2%. Economists had expected the economy to have lost another 175,000 jobs last month and for the unemployment rate to rise to 9.9%, according to a consensus of economists surveyed by Briefing.com. On the earnings front, AIG, the insurance behemoth bailed out by the U.S. government, reported its second straight quarterly profit after seven quarters of losses. Results were better than expected, but the company's main insurance businesses posted weaker revenue, sending shares lower Friday. AIG stock had rallied Thursday ahead of the results. Starbucks posted weaker quarterly results that beat expectations in a report released late Thursday. The coffee retailer also boosted its outlook for 2010 profit, after having cut costs and shuttered hundreds of stores in the last year. Shares gained 4.3%. Fannie Mae reported an almost-$19-billion-U.S. quarterly loss on bad loans. The biggest U.S. mortgage lender also said it would never more help from the Treasury. Shares fell 10%. Treasury prices resumed their upward trek, lowering the yields for the benchmark 10-year note to 3.51% from Thursday's 3.52%. Prices and yields move in opposite directions. The price of a barrel of oil lost $2.49 to $77.13 U.S. Gold prices gained three dollars to $1,093 U.S. an ounce.