Canadian Stocks Are Down As Energy Stocks Struggle -- Canadian Commentary

(RTTNews) - The Canadian stock market is trading to the downside Thursday morning. Investors continue to sift through a large number of corporate financial reports, while the Bank of England announced a historic stimulus package. However, the continued struggles in crude oil continue to weigh on investor sentiment. Energy stocks are giving back yesterday's gains and continue to hover around $40 a barrel.

Markets in Europe are positive Thursday, after the Bank of England announced a massive package of stimulus measures. However, the markets have pared their gains following the announcement. The BoE reduced its interest rate for the first time in more than seven years and expanded its asset purchase program by GBP 60 billion. The central bank also drastically downgraded its growth projections.

Markets in the United States were up slightly in early trade Thursday, but have since slipped into negative territory. The Bank of England announcement provided some early strength, but investors remain cautious ahead of Friday's U.S. jobs report.

The benchmark S&P/TSX Composite Index is down 30.79 points or 0.21 percent at 14,481.26.

On Wednesday, the index closed up 35.04 points or 0.24 percent, at 14,512.05. The index scaled an intraday high of 14,523.89 and a low of 14,439.84.

The heavyweight Financial Index is decreasing 0.68 percent. Bank of Montreal (BMO.TO) is lower by 0.69 percent and Canadian Imperial Bank of Commerce (CM.TO) is down 0.16 percent. National Bank of Canada (NA.TO) is weakening by 0.34 percent and Toronto Dominion Bank (TD.TO) is falling 0.25 percent. Royal Bank of Canada (RY.TO) is losing 0.22 percent and Bank of Nova Scotia (BNS.TO) is surrendering 0.32 percent.

Manulife Financial (MFC.TO) earnings were down 8 percent. The stock is dropping 5.52 percent.

The Diversified Metal and Mining Index is declining 0.61 percent. HudBay Minerals (HBM.TO) is surrendering 2.06 percent and First Quantum Minerals (FM.TO) is decreasing 0.32 percent. Lundin Mining (LUN.TO) is lower by 0.55 percent and Capstone Mining (CS.TO) is falling 1.19 percent.

The Capped Industrials Index is falling 0.44 percent. Canadian National Railway (CNR.TO) is decreasing 0.87 percent and Air Canada (AC.TO) is dipping 0.11 percent. Bombardier (BBD-B.TO) is losing 0.76 percent.

Canadian Pacific Railway (CP.TO) is dropping 3.67 percent. Bill Ackman's Pershing Square has divested its complete holding in Canadian Pacific Railway.

Canadian Tire (CTC.TO) quarterly profit was up 8 percent. The stock is climbing 0.25 percent.

The Energy Index is down 0.07 percent. Crude oil prices are lower Thursday morning, unable to sustain yesterday's rally inspired by plunging gasoline stockpiles.

Suncor Energy (SU.TO) is down 0.26 percent and Canadian Natural Resources (CNQ.TO) is falling 0.79 percent. The company's quarterly loss narrowed on lower costs, while its Horizon project is on track for November.

The Gold Index is higher by 0.52 percent. Gold prices rebounded from overnight losses Thursday morning after the Bank of England cut interest rates for the first time in seven years.

Yamana Gold (YRI.TO) is climbing 0.93 percent and B2Gold (BTO.TO) is up 4.65 percent. Barrick Gold Corp (ABX.TO) is rising 0.68 percent and Kinross (K.TO) is advancing 0.99 percent. Goldcorp (G.TO) is higher by 0.21 percent and Eldorado Gold (ELD.TO) is gaining 1.70 percent.

IAMGOLD (IMG.TO) is surging 4.06 percent, after it reported second-quarter earnings that topped estimates.

The Capped Materials Index is also up 0.52 percent. Franco-Nevada (FNV.TO) is gaining 0.84 percent and Agnico Eagle Mines (AEM.TO) is rising 0.85 percent. Silver Wheaton (SLW.TO) is increasing 0.42 percent and Potash Corp. of Saskatchewan (POT.TO) is dropping 3.10 percent.

The Capped Healthcare Index is gaining 0.53 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 0.75 percent and Concordia Healthcare (CXR.TO) is climbing 1.30 percent. Extendicare (EXE.TO) is also adding 0.49 percent.

The Capped Telecommunication Services Index is up 0.15 percent. Rogers Communication (RCI-B.TO) is rising 0.32 percent and Manitoba Telecom Services (MBT.TO) is higher by 0.65 percent.

BCE (BCE.TO) is advancing 0.37 percent after it reported earnings that rose 12 percent.

The Capped Information Technology Index is rising 0.11 percent. Descartes Systems Group (DSG.TO) is climbing 1.09 percent.

SNC - Lavalin Group (SNC.TO) announced earnings for its second quarter that increased 10 percent from last year. Shares are rising 2.85 percent.

On the economic front, Germany's construction activity expanded for the eighteenth successive month in July, driven by sustained growth in residential building activity, survey figures from Markit Economics showed Thursday. The construction Purchasing Managers' Index, or PMI, rose to 51.6 in July from June's 10-month low of 50.4.

With the monthly jobs report looming, the Labor Department released a report on Thursday showing a modest uptick in first-time claims for U.S. unemployment benefits in the week ended July 30th. The report said initial jobless claims rose to 269,000, an increase of 3,000 from the previous week's unrevised level of 266,000. Economists had expected claims to edge down to 265,000.

While the Commerce Department released a report on Thursday showing a notable decline in new orders for U.S. manufactured goods in the month of June, the decrease was not quite as steep as expected. The Commerce Department said factory orders tumbled by 1.5 percent in June after slumping by 1.2 percent in May.

Economists had expected orders to plunge by 1.8 percent compared to the 1.0 percent drop originally reported for the previous month.

In commodities, crude oil futures for September delivery are down 0.21 or 0.51 percent at $40.62 a barrel.

Natural gas for September is up 0.011 or 0.39 percent at $2.85 per million btu.

Gold futures for December are up $4.10 or 0.30 percent at $1,368.80 an ounce.

Silver for September is down $0.096 or 0.47 percent at $20.375 an ounce.