Canadian Stocks Flat After Recent Rally -- Canadian Commentary

(RTTNews) - Canadian stocks are turning in a mixed performance on Friday with traders treading cautiously after a big jump in Canadian inflation.

According to the data released by Statistics Canada before trading hours, Canadian inflation hit the 2 percent mark in April, for the first time since 2012, from 1.5 percent in the previous month. However, core inflation, which is closely watched by the central bank, remained at 1.4 percent in April.

Investors are also reacting to a report from the U.S. Commerce Department that showed new homes sales to have jumped by a more than expected 6.4 percent in April.

Worries about Ukraine and a weak reading on German business confidence are weighing on the market to an extent. Somewhat sluggish commodity prices are also contributing to the lackluster movements in the market.

The benchmark S&P/TSX Composite Index is up 1.49 points or 0.01 percent at 14,703.78, edging up from a low of 14,684.80.

On Thursday, the closed up 52.43 points or 0.36 percent at 14,702.29, extending gains to a third successive session, thanks positive global cues and some encouraging Canadian earnings news.

Among big six banks, Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank Of Commerce (CM.TO) and National Bank of Canada (NA.TO) are modestly higher, while Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) are little changed from their previous closing prices.

In the energy space, Cenovus Energy Inc. (CVE.T), Encana Corporation (ECA.TO), Imperial Oil (IMO.TO), Canadian Oil Sands (COS.TO) and Talisman Energy (TLM.TO) are down 0.4 to 0.8 percent.

Meanwhile, Canadian Natural Resources Limited (CNQ.TO), Twin Butte Energy Ltd. (TBE.TO), Trican Well Service Ltd. (TCW.TO), Crew Energy Inc. (CR.TO) and Bankers Petroleum Ltd. (BNK.TO) are up in positive territory, gaining 1 to 2 percent.

Among gold stocks, Goldcorp Inc. (G.TO), Silver Wheaton Corp. (SLW.TO) and Franco-Nevada Corporation (FNV.TO) are down 1.3 to 2 percent. Meanwhile, Yamana Gold Inc. (YRI.TO), Yamana Gold Inc. (YRI.TO), B2Gold Corp. (BTO.TO) and Detour Gold Corporation (DGC.TO) are lower by 0.4 to 0.8 percent.

Industrial stocks SNC-Lavalin Group Inc. (SNC.TO), Bombardier Inc. (BBD.B.TO) and Progressive Waste Solutions Ltd. (BIN.TO) are lower by 0.8 to 1.4 percent. Air Canada (AC.B.TO) is moving up 1.3 percent.

In the healthcare space, Valeant Pharmaceuticals International, Inc. (VRX.TO) is up nearly 1 percent, while Catamaran Corporation (CCT.TO) and Extendicare Inc. (EXE.TO) are down marginally.

Technology stocks Avigilon Corporation (AVO.TO), Open Text Corporation (OTC.TO), Constellation Software Inc. (CSU.TO) and BlackBerry Limited (BB.TO) are declining 0.4 to 0.8 percent.

In commodities, crude oil prices are slightly higher with investors looking ahead to U.S. housing data and this weekend's presidential election in the Ukraine.

Crude oil futures for July are up $0.40 or 0.39 percent at $104.14 a barrel.

Natural gas for June is up $0.032 or 0.72 percent at $4.391 per million btu.

Gold futures for June delivery are down $1.80 or 0.14 percent at $1,293.20 an ounce.

Silver for July is down $0.073 or 0.37 percent at $19.447 an ounce.

Meanwhile, copper is up $0.023 or 0.70 percent at $3.165 per pound.

In the currency market, the Canadian loonie is trading at 1.0891 against the U.S. dollar, up marginally from previous close.

In economic news from the U.S., a report from the U.S. Commerce Department showed that new home sales jumped by a more than expected 6.4 percent to a seasonally adjusted annual rate of 433,000 in April, from the revised March rate of 407,000. Economists had expected new home sales to climb to a rate of 420,000.

The revised rate for March represents a substantial upward revision from the 384,000 originally reported, although it still represents a six-month low.