TSX Ends A Tad Higher Despite Lower Commodities -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end a tad higher Tuesday, led by resource stocks while tracking corporate news and earnings reports, after an extended weekend.

Buying interest was somewhat subdued with sluggish commodity prices and weak European markets weighing to an extent, even as worries over Ukraine appeared to prompt investors to tread cautiously.

The S&P/TSX Composite Index closed Tuesday at 14,525.19, up 10.45 points or 0.07 percent. The index scaled an intraday high of 14,564.97 and a low of 14,488.59.

On Thursday, the index ended lower hurt by drop in commodity prices and on some disappointing earnings and economic reports.

The Capped Healthcare Index jumped 2.44 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 3.73 percent. Pershing Square Capital Management L.P. released an open letter sent to the Board of Directors of Allergan Inc. (AGN), concerning the board's governance failures with regard to its handling of Canadian drug maker's merger proposal.

Catamaran Corp. (CCT.TO) gained 0.77 percent, while Extendicare Inc. (EXE.TO) added 2.79 percent.

Crude oil settled higher on growing concerns of possible supply disruptions from Russia amid the prevailing geopolitical tensions in Ukraine.

The Energy Index inched up 0.03 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, gained $0.22 or 0.2 percent to close at $102.33 a barrel Tuesday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) gained 0.85 percent, while Baytex Energy Corp. (BTE.TO) added 0.56 percent. Husky Energy Inc. (HSE.TO) edged up 0.14 percent, and Canadian Natural Resources Ltd. (CNQ.TO) added 0.18 percent. Canadian Oil Sands Limited (COS.TO) dropped 1.04 percent.

Gold futures ended slightly higher on lingering concerns over the ongoing unrest in Ukraine and subdued global equity markets, amid reports of a notable drop in gold demand from China last quarter.

The Global Gold Index gained 0.30 percent, with gold futures for June delivery gaining $0.80 or 0.1 percent to close at $1,294.60 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 1.99 percent, Osisko Mining Corp. (OSK.TO) up 0.37 percent, Barrick Gold Corp. (ABX.TO) up 0.50 percent, and Agnico Eagle Mines Limited (AEM.TO) down 0.54 percent.

The Capped Materials Index gathered 0.40 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) advancing 1.12 percent.

The Financial Index slipped 0.0.08 percent with the Toronto-Dominion Bank (TD.TO) down 0.10 percent, Royal Bank of Canada (RY.TO) up 0.77 percent, The Bank of Nova Scotia (BNS.TO) up 0.36 percent, and Bank of Montreal (BMO.TO) down 0.31 percent.

Canadian Imperial Bank of Commerce (CM.TO) slipped 0.05 percent.

The Diversified Metals & Mining Index added 0.12 percent, with Lundin Mining Corp. (LUN.TO) up 1.79 percent, First Quantum Minerals Ltd. (FM.TO) up 0.62 percent, and Teck Resources Limited (TCK.B.TO) down 0.45 percent.

The Information Technology Index inched up 0.06 percent, with BlackBerry Limited (BB.TO) up 0.25 percent, Constellation Software Inc (CSU.TO) down 1.03 percent, and Celestica Inc. (CLS.TO) down 1.22 percent.

Avigilon Corp. (AVO.TO) gained 2.29 percent.

The Capped Industrials Index shed 0.04 percent, although Bombardier Inc. (BBD.B.TO) gained 0.51 percent and Air Canada (AC.B) added 0.37 percent.

In corporate news, Ivanhoe Energy Inc. (IE.TO) shed 1.11 percent after announcing the appointment of Greg Phaneuf as its Chief Financial Officer, effective June 1, 2014.

Sears Canada Inc. (SCC.TO) dropped 2.36 percent, after having announced Friday that it has entered into an agreement for the sale of its 15% minority ownership interest in the Centre commercial Les Rivières shopping centre in Trois-Rivières, Quebec, a joint arrangement the company holds with affiliates of Ivanhoé Cambridge, for pre-tax consideration of $33.5 million.

In a significant move, the U.S. retail giant Target Corp. has fired Tony Fisher, President of its Canadian operations. He is being replaced by Mark Schindele, a senior vice president of its merchandising operations.

In economic news, data released by Statistics Canada showed Canadian wholesales to have dropped by 0.4 percent to $50.5 billion in March, after two consecutive monthly gains.

Elsewhere, gross domestic product for the Organization for Economic Cooperation and Development countries grew at a slower pace in the first quarter, with the provisional estimates showing the real quarter-on-quarter growth to have slowed to 0.4 percent, from 0.5 percent in the fourth quarter of 2013.

From Europe, U.K. inflation accelerated more-than-expected on higher transport costs in April, while factory gate inflation continued to remain subdued signaling weak inflationary pressure in the pipeline. Consumer price inflation rose to 1.8 percent from 1.6 percent in March, which was the lowest since October 2009, the Office for National Statistics said Tuesday. This was the first time since June 2013 that the annual rate increased and also exceeded economists' consensus of 1.7 percent. But it has remained below the 2 percent target since January.

Meanwhile, Charles Plosser, president of the Philadelphia Fed. Believes the Federal Reserve may raise interest rates sooner than expected if the U.S. economy continues to speed up after the winter lull. He predicts the recovery will pick up in the second of 2014 and into next year, prompting the Fed to "begin raising interest rates sooner rather than later."

Plosser sees unemployment dwindling below 5.9 percent by the end of this year. Despite some recent weakness in the housing market, the U.S. economy "is on the firmest footing it has been on since the recovery began," said Plosser.

Investors also await the minutes of the U.S. Federal Reserve's monetary policy meeting, due Wednesday.