TSX Ends Higher On Continued Stimulus Hopes - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Friday, tracking rising global equity markets, amid improved investor sentiments bolstered by statement from Federal Reserve chairwoman-designate Janet Yellen that the central bank would not likely scale down the quantitative easing program in the near future. In addition, a slew of weak economic data out of the U.S. also firmed the assumption the Fed will leave its monetary program unchanged.

In some disappointing economic news from the U.S., import prices fell more than expected in October due largely to fuel prices tacking a significant decrease, while wholesale inventories in the U.S. rose in line with economist estimates in September.

A Federal Reserve report revealed industrial production in the U.S. to have unexpectedly declined in October, while the New York Fed's general business condition index turned negative in November from a positive reading in October.

The S&P/TSX Composite Index closed Friday at 13,482.57, up 51.19 points or 0.38 percent. The index touched an intraday high of 13,490.19 and a low of 13,431.38.

Crude oil prices ended marginally higher on Friday, after fluctuating for most of the session after an hefty rise in U.S. crude stockpiles and Janet Yellen's statement that the central bank would not likely scale down the quantitative easing program in the near future.

The Energy Index added 0.99 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, edging up $0.08 or 0.1 percent to close at $93.84 a barrel Friday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) shed 0.11 percent, while Encana Corp. (ECA.TO) added 1.68 percent. Suncor Energy Inc. (SU.TO) added 0.35 percent, while Canadian Natural Resources (CNQ.TO) gained 2.99 percent.

The Information Technology Index slipped 0.06 percent, with smartphone maker BlackBerry Limited (BB.TO) down 0.30 percent.

The Diversified Metals & Mining Index moved up 0.18 percent, with First Quantum Minerals Ltd. (FM.TO) dropped 0.37 percent, while Lundin Mining Corp. (LUN.TO) dipped 1.12 percent. Teck Resources (TCK_B.TO) added 0.22 percent.

The Capped Materials Index dropped 0.68 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) gaining 0.83 percent.

Gold futures ended higher for a second straight day on Friday, as the dollar weakened against a basket of major currencies following comments from Federal Reserve's Janet Yellen that the central bank would not likely scale down the quantitative easing program in the near future.

The Global Gold Index up 0.10 percent, with gold futures for December delivery, the most actively traded contract, up $1.10 or 0.1 percent to close at $1,287.40 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 1.91 percent, while Goldcorp Inc. (G.TO) shed 1.93 percent. Kinross Gold Corp. (K.TO) slipped 1.11 percent, while Eldorado Gold Corp. (ELD.TO) surrendered 1.72 percent. B2Gold Corp. (BTO.TO) dropped 3.66 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.16 percent.

The Financial Index added 0.38 percent with Bank of Montreal (BMO.TO) up 0.52 percent, while Royal Bank of Canada (RY.TO) gained 0.45 percent. The Bank of Nova Scotia (BNS.TO) moved up 0.29 percent, while Toronto-Dominion Bank (TD.TO) gathered 0.60 percent. National Bank of Canada (NA.TO) dropped 0.38 percent.

The Capped Industrials Index gained 0.48 percent, with Air Canada (AC.B.TO) shed 1.30 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) added 2.20 percent.

The Capped Telecommunications Index added 0.84 percent with BCE Inc. (BCE.TO) adding 0.97 percent.

Base metals mining firm Mercator Minerals (ML.TO) lost 14.29 percent after reporting a sharply wider third quarter loss of C$151.9 million or C$0.48 per basic share from C$15.1 million or C$0.06 per basic share in the prior year.

Private equity company Onex Corp. (OCX.TO) gathered 1.96 percent after reporting a surge in third-quarter net income at $399 million or $3.22 per share compared with $98 million or $1.50 per share last year.

Broadband communications service provider TeraGo Inc. (TGO.TO) lost 10.91 percent after announcing the resignation of Bryan Boyd as President, CEO and board member of the company and its subsidiary. The company named Charles Allen Chairman of the Board to act as Interim President and CEO.

In economic news, Statistics Canada said manufacturing sales hit their highest level since June 2012, rising 0.6 percent to $49.9 billion in September. The gain was largely a result of higher sales in the motor vehicle assembly and food industries.

In economic news from the U.S., the the Labor Department said said import prices fell by 0.7 percent in October after inching up by 0.1 percent in September. Economists had been expecting import prices to drop by about 0.5 percent. Additionally, the Labor Department said exports prices dropped by 0.5 percent in October following a 0.4 percent increase in the previous month. Export prices had been expected to edge up by 0.2 percent.

A Commerce Department report said wholesale inventories in the U.S. increased by 0.4 percent in September after climbing by an upwardly revised 0.8 percent in August. The increase was in line with economists' estimates. Inventories of durable goods rose 0.3 percent amid a jump in inventories of computers, peripheral equipment and software. Inventories of non-durable goods also increased by 0.5 percent. Meanwhile, wholesale sales increased 0.6 percent in September after rising by 0.4 percent in the previous month.

Meanwhile, the New York Fed said its general business conditions index dropped to a negative 2.2 in November from a positive 1.5 in October, with a negative reading indicating a contraction in manufacturing activity. The negative reading for the general business conditions index came as a surprise to economists, who had expected the index to climb to 5.5.

Separately, a report from the Federal Reserve said industrial production edged down by 0.1 percent in October after climbing by an upwardly revised 0.7 percent in September. Economists had been expecting production to inch up by 0.1 percent compared to the 0.6 percent increase originally reported for the previous month.

Elsewhere, euro zone inflation slowed to 0.7 percent in October, as initially estimated, from 1.1 percent in September, final data from Eurostat showed. The rate was the lowest since November 2009. Moreover, it has remained below the European Central Bank's target of 'below, but close to 2 percent' for the ninth month in a row. Month-on-month, consumer prices were down 0.1 percent in October, the statistical office said.