CANADA STOCKS-Mixed U.S., Canadian jobs data keeps TSX steady

    * TSX 7.34 points, or 0.05 percent, lower at 13,706.06 
    * Five of the 10 main index sectors decline 
    * Baytex Energy drops after acquisition move 
    * Dorel tumbles after profit warning 
 
    By John Tilak 
    TORONTO, Feb 7 (Reuters) - Canada's main stock index was 
little changed on Friday as investors digested stronger Canadian 
jobs data and a U.S. labor report that showed nonfarm payrolls 
missed expectations in January.  
    Weighing on the index, shares of Baytex Energy Corp    
tumbled a day after the oil producer agreed to buy Australia's 
Aurora Oil & Gas Ltd    for C$2.6 billion ($2.4 billion) 
including debt.    
    The Canadian economy recorded its biggest employment gain 
since August in January, topping market estimates, and the 
unemployment rate fell, according to government figures. 
   
    The U.S. jobs report painted a mixed picture as employers 
hired fewer workers than expected in January, but the 
unemployment rate hit a new five-year low.    
    "The data suggests that this ongoing improvement in the 
labor markets is measurable but glacial at best," said Stephen 
Wood, chief market strategist, North America, at Russell 
Investments. "While the improvement is glacial, it is an 
improvement. 
    "There's not a radical change in the labor market and 
there's not a radical change in the inflationary environment 
that would force the (U.S. Federal Reserve) to do anything 
abruptly," he added. 
    The Toronto Stock Exchange's S&P/TSX composite index 
   was down 7.34 points, or 0.05 percent, at 13,706.06. 
Five of the 10 main sectors on the resource-heavy index were in 
the red. 
    Wood said that while commodities belong in properly 
allocated portfolios, investors should be cognizant of risks 
involving China's economy, a massive market for natural 
resources. 
    "There's going to be some challenge in the commodity space 
as China resets its policy path," he said.  
    Energy shares felt the impact of Baytex's decline on Friday. 
The stock shed nearly 6 percent to C$39.17, and elsewhere in the 
group Encana Corp    dropped 3 percent to C$20.33. 
    Financials, the index's most heavily weighted sector, were 
down 0.2 percent, with Royal Bank of Canada    slipping 0.4 
percent to C$69.69.  
    Gold-mining shares jumped 1.7 percent, lifted by a gain in 
the bullion price. Barrick Gold Corp    rose 1.6 percent 
to C$20.79, and Goldcorp Inc    climbed 1.9 percent to C$28. 
    In corporate news, leisure-products company Dorel Industries 
Inc    said on Thursday that it will report a drop in 
fourth-quarter earnings. The stock slid 8 percent to C$36.47 and 
showed the biggest percentage decline on the index. 
   
    ($1=$1.10 Canadian) 
 
 (Editing by Peter Galloway) 
 ((john.tilak@thomsonreuters.com)(1-416-687-7918)(Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
  
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