Canadian Stocks Are Adding To Recent Losses -- Canadian Commentary

(RTTNews) - The Canadian stock market has been losing ground since the start of the trading week and is down again in early trade Thursday. Tumbling commodities prices have hit resources stocks and weakened the Canadian dollar. The majority of the Canadian sectors are trading in the red this morning, with the largest losses in shares of utilities and gold stocks.

The majority of the European markets are trading with slight losses Thursday. Greece cleared another hurdle and stepped into the bailout zone after the government approved the second set of reform measures early Thursday. The reforms, which is the final requirement before the country can start the bailout negotiations with its creditors, included lifting of liquidity of banks, deposit security and renewing of the judicial system.

Markets in the United States are turning in a mixed performance. The Dow Jones and the S&P 500 are trading slightly lower, while the Nasdaq is holding onto modest gains. A mixed reaction to the latest batch of earnings news has lead to choppy trading on Wall Street.

In an upbeat sign for the job market, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits tumbled to their lowest level in over forty years in the week ended July 18th.

The report said initial jobless claims dropped to 255,000, a decrease of 26,000 from the previous week's unrevised level of 281,000. Economists had expected jobless claims to edge down to 279,000. With the much bigger than expected decrease, jobless claims fell to their lowest level since hitting 233,000 in November of 1973.

Pointing to continued strength in the economic outlook for the remainder of the year, the Conference Board released a report on Thursday showing another bigger than expected increase by its index of leading U.S. economic indicators.

The Conference Board said its leading economic index climbed by 0.6 percent in June following an upwardly revised 0.8 percent increase in May. Economists had expected the index to edge up by 0.2 percent compared to the 0.7 percent increase originally reported for the previous month.

The benchmark S&P/TSX Composite Index is down 33.20 points or 0.23 percent at 14,273.92.

On Wednesday, the index closed down 69.12 points or 0.48 percent, at 14,307.12. The index scaled an intraday high of 14,361.01 and a low of 14,231.10.

The Diversified Metal and Mining Index is declining by 1.17 percent. First Quantum Minerals (FM.TO) is decreasing by 2.84 percent and Capstone Mining (CS.TO) is losing 1.89 percent. HudBay Minerals (HBM.TO) is falling by 1.26 percent and Sherritt International (S.TO) is down 1.23 percent.

Teck Resources (TCK-A.TO) is currently unchanged. The company reported second quarter adjusted EPS of C$0.14, compared to C$0.13 a year ago.

The Gold Index is falling by 1.26 percent. Gold prices nudged higher Thursday morning after big losses in the previous few sessions brought prices to a 5 1/2-year low.

Eldorado Gold (ELD.TO) is decreasing by 1.64 percent and Goldcorp (G.TO) is losing 1.86 percent. IAMGOLD (IMG.TO) is falling by 2.42 percent and B2Gold (BTO.TO) is down 1.33 percent.

Barrick Gold (ABX.TO) is declining by 0.94 percent, after Ned Goodman resigned from its Board of Directors.

The Capped Materials Index is down 0.96 percent. Agrium (AGU.TO) is losing 0.78 percent and Potash Corp. of Saskatchewan (POT.TO) is lower by 0.25 percent. Agnico Eagle Mines (AEM.TO) is falling by 1.25 percent and Franco-Nevada (FNV.TO) is declining by 0.61 percent. Silver Wheaton (SLW.TO) is also decreasing by 0.66 percent.

The Energy Index is decreasing by 0.85 percent. Crude oil prices were flat Thursday morning after falling sharply in the previous session.

Encana (ECA.TO) is falling by 0.88 percent and Crescent Point Energy (CPG.TO) is down 1.95 percent. Cenovous Energy (CVE.TO) is declining by 1.14 percent and Canadian Natural Resources (CNQ.TO) is losing 0.93 percent. Canadian Oil Sands (COS.TO) is weakening by 0.39 percent and Enbridge (ENB.TO) is lower by 0.86 percent.

Precision Drilling (PD.TO) is rising by 2.98 percent. The company reported a second quarter loss of C$0.10 per share, compared to the loss of C$0.02 per share last year.

The heavyweight Financial Index is weakening by 0.54 percent. Toronto-Dominion Bank (TD.TO) is dipping by 0.21 percent and Bank of Nova Scotia (BNS.TO) is falling by 0.29 percent. Bank of Montreal (BMO.TO) is decreasing by 0.37 percent and Canadian Imperial Bank of Commerce (CM.TO) is down 0.25 percent. Royal Bank of Canada (RY.TO) is declining by 0.45 percent and National Bank of Canada (NA.TO) is surrendering 0.97 percent.

The Capped Industrials Index is down 0.07 percent. Finning International (FTT.TO) is falling by 1.23 percent and Canadian Pacific Railway (CP.TO) is lower by 0.40 percent. Canadian National Railway is also decreasing by 0.83 percent.

The Capped Telecommunication Services Index is gaining 0.95 percent. BCE (BCE.TO) is advancing by 0.28 percent and Manitoba Telecom Services (MBT.TO) is rising by 0.90 percent. TELUS (T.TO) is increasing by 0.71 percent.

Rogers Communication (RCI-A.TO) is climbing by 3.35 percent. The company reported second quarter adjusted EPS of C$0.80, which topped the consensus estimate of C$0.79.

The Capped Health Care Index is rising by 0.91 percent. Concordia Healthcare (CXR.TO) is up 1.25 percent.

Valeant Pharmaceuticals International (VRX.TO) is gaining 3.51 percent. The company reported second quarter adjusted Cash EPS of $2.73 and raised its full year 2015 Cash EPS forecast to between $11.50 and $11.80.

The Capped Information Technology Index is gaining 0.47 percent. Constellation Software (CSU.TO) is higher by 0.27 percent and Descartes Systems Group (DSG.TO) is climbing by 1.85 percent. Sierra Wireless (SW.TO) is rising by 3.76 percent.

Loblaw (L.TO) is rising by 2.89 percent, after it reported second quarter adjusted EPS of C$0.85. The consensus estimate had been for EPS of C$0.83.

On the economic front, Statistics Canada reported this morning that Canadian retail sales rose to a record in May amid record new car sales. Sales increased 1 per cent from the prior month to C$43 billion. Economists had been expecting an increase of 0.5 percent.

U.K. retail sales declined unexpectedly in June, reflecting weak food and non-food store turnover, weighing marginally on the second quarter economic growth.

Retail sales including automotive fuel declined 0.2 percent in June from the prior month, reversing a 0.3 percent rise in May, data from the Office for National Statistics showed Thursday. Sales were expected to grow 0.4 percent. This was the first drop in three months.

Japan posted a merchandise trade deficit of 69.045 billion yen in June, the Ministry of Finance said on Thursday. That missed forecasts for a surplus of 45.8 billion following the downwardly revised 217.2 billion yen deficit in May.

In commodities, crude oil futures for August delivery are up $0.23 or 0.47 percent at $49.42 a barrel.

Natural gas for August is up 0.017 or 0.59 percent at $2.914 per million btu.

Gold futures for August are up $4.00 or 0.37 percent at $1,095.50 an ounce.

Silver for September is down $0.02 or 0.14 percent at $14.71 an ounce.