Canada’s labour market outpaced expectations last month with 378,200 jobs created in September – more than double Bay Street’s estimate. The vast majority of the gains were in full-time work, while the unemployment rate dropped to 9.0 per cent from 10.2 per cent. But it’s still a long road to recovery to climb back from the three million jobs that were lost in the early months of the pandemic.

TD DOWNGRADED AGAIN

For the second time this week, Toronto-Dominion Bank has fallen out of favour with an analyst. This morning, it's Credit Suisse's Mike Rizvanovic who knocked his rating down to Underperform with a target price of $59 per share. Similar to Bank of America’s rationale for downgrading the bank earlier this week, Rizvanovic points to TD's sensitivity to low rates as well as tax risk surrounding the U.S. presidential election, among other factors.       

TSX RALLY

The S&P/TSX Composite Index closed yesterday at its highest level in just over a month after rising for the fifth time in the last six sessions. Big energy names like Enbridge, TC Energy and Canadian Natural led the way, while pot stocks were among the top percentage gainers thanks to Kamala Harris’s comments about decriminalizing cannabis in Wednesday’s U.S. vice-presidential debate.

COVID WATCH

Ontario Premier Doug Ford’s cabinet will meet this morning to discuss recommendations from public health officials. This comes one day after Ontarians were left in the lurch when the province’s chief medical officer said he made recommendations to the government, but wouldn’t divulge the details. All this amid a record single-day spike in new virus cases for Ontario.

Reporter: Via CTV

U.S. STIMULUS WATCH

Futures are pointing to some modest gains at the start of trading in New York after optimism for a stimulus package was rekindled yesterday. It represented a flip-flop after U.S. President Donald Trump halted the process earlier in the week. Now, a spokesperson for U.S. House Speaker Nancy Pelosi says Treasury Secretary Steven Mnuchin indicated the administration is open to a broad basket of aid after all.

OTHER NOTABLE STORIES

-MTY Food Group’s third-quarter revenue fell 16 per cent, which was a more modest drop than analysts expected, while adjusted EBITDA rose in the period. MTY, whose brands include Jugo Juice, Manchu Wok and mmmuffins, says 364 of its restaurants remained closed at quarter-end (Aug. 31) and that it’s preparing for the possibility that consumer behaviour may change permanently as a result of the pandemic.

-Advantage Oil & Gas has nudged up its 2020 capital spending forecast by $17 million to as much as $162 million, citing the “continued strengthening of [its] outlook.”

-Xilinx shares are up ~15 per cent in pre-market trading amid multiple reports the chip maker is being targeted by Advanced Micro Devices for a takeover.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian labour force survey

-12:00 p.m. ET: Prime Minister Justin Trudeau makes announcement in Ottawa alongside Deputy PM Christy Freeland, Agriculture Minister Marie-Claude Bibeau, Intergovernmental Affairs Minister Dominic LeBlanc, Health Minister Patty Hajdu, Chief Public Health Officer Theresa Tam, and Deputy Chief Public Health Officer Howard Njoo

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.