TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded from a three-day loss to end higher on Thursday, tracking rising global equity markets, helped by gains in healthcare, information tech, gold and mining sectors.

Markets in the United States ended in the green, with investor sentiment getting a boost following the unexpected decline in weekly jobless claims for unemployment benefits.

European markets also ended in positive territory , after having struggled in early trade. The early weakness was attributed to U.S. growth concerns, after yesterday's weaker than expected U.S. retail sales report. The markets climbed into the green following the release of the better than expected U.S. weekly jobless claims.

First-time claims for U.S. unemployment benefits unexpectedly showed a modest decrease in the week ended May 9, a report from the Labor Department on Thursday.

Nonetheless, in some soft economic data, a Labor Department report on Thursday showed an unexpected drop in U.S. producer prices in April, reflecting a sharp pullback in energy prices. A drop in producer prices indicates inflation to be under check.

Combined with the recent disappointing retail sales data, the drop in prices further reinforces the view that the Federal Reserve could delay its planned increase in interest rates.

The benchmark S&P/TSX Composite Index closed Thursday at 15,028.12, up 47.40 points or 0.32 percent. The index scaled an intraday high of 15,036.82 and a low of 14,983.97.

On Wednesday, the index closed down 62.43 points or 0.42 percent, at 14,980.72 on some disappointing U.S. retail sales data that was below expectations, once again raising concerns over the strength of the U.S. economy. The index scaled an intraday high of 15,095.54 and a low of 14,948.28.

The Diversified Metals & Mining Index gained 0.67 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 1.74 percent, Teck Resources Limited (TCK.B.TO) fell 2.20 percent, and Sherritt International Corp. (S.TO) moved up 0.34 percent.

Gold futures moved up to end at a three-month high, consolidating gains as the dollar dipped to its lowest of the year against the euro after a recent batch of weak economic data from the U.S. The correction in the dollar has given commodity prices a lift this week, with gold futures scaling a three-month high intraday.

The Gold Index gained 0.31 percent, after gold for June delivery added $7.00 or 0.6 percent to settle at $1,225.20 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) added 1.08 percent, Barrick Gold Corp. (ABX.TO) dipped 0.19 percent, and Yamana Gold Inc. (YRI.TO) surrendered 1.24 percent.

Eldorado Gold Corp. (ELD.TO) ended flat, while Agnico Eagle Mines Limited (AEM.TO) slipped 0.20 percent.

The Capped Materials Index gained 0.46 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.36 percent and Agrium Inc. (AGU.TO) up 0.47 percent.

U.S. crude oil pared losses but still ended lower on supply glut concerns, even as the dollar trended lower and official data from the Energy Information Administration yesterday showed a decline in U.S. crude stockpiles last week.

A weekly report from the Energy Information Administration said U.S. crude oil inventories dropped 2.2 million barrels in the week ended May 8, while analysts expected a decline of 0.25 million barrels.

The Energy Index fell 0.85 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, dropping $0.62 or 1.0 percent, to settle at $59.88 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.17 percent, while Crescent Point Energy Corp. (CPG.TO) dropped 0.64 percent. Cenovus Energy Inc. (CVE.TO) gained 1.08 percent, Canadian Natural Resources Limited (CNQ.TO) fell 1.28 percent, and Canadian Oil Sands Limited (COS.TO) dived 2.63 percent.

Pacific Rubiales Energy Corp. (PRE.TO) shed 1.67 percent, after the company's first quarter revenues dropped to $799.8 million from $1.28 billion last year.

Legacy Oil + Gas (LEG.TO) surrendered 0.72 percent, after having reported a first quarter loss of C$0.22 per share, compared to the profit of C$0.02 per share a year ago.

The heavyweight Financial Index moved up 0.22 percent, as Bank of Nova Scotia (BNS.TO) gained 0.12 percent, Toronto-Dominion Bank (TD.TO) added 0.29 percent, and Royal Bank of Canada (RY.TO) gathered 0.61 percent. Canadian Imperial Bank of Commerce (CM.TO) dropped 0.16 percent.

National Bank of Canada (NA.TO) added 0.39 percent, while Bank of Montreal (BMO.TO) declined 0.18 percent.

The Capped Health Care Index gathered 1.04 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) gained 1.52 percent, Concordia Healthcare Corp. (CXR.TO) gathered 0.44 percent, and Catamaran Corp. (CCT.TO) moved up 0.51 percent.

The Capped Industrials Index added 1.40 percent, as Finning International Inc. (FTT.TO) gathered 2.53 percent, Air Canada (AC.TO) dropped 0.79 percent, Canadian Pacific Railway Limited (CP.TO) shed 0.14 percent, and Canadian National Railway (CNR.TO) dropped 0.73 percent.

Bombardier Inc. (BBD-A.TO) jumped 5.10 percent, after announcing plans to cut 1,750 jobs at its business-jet division.

Canadian Tire Corp. (CTC-A.TO) gained 1.32 percent, after having reported first quarter earnings of $0.88 per share, flat with the prior year result.

The Information Technology Index declined 0.68 percent, as Descartes Systems Group Inc. (DSG.TO) gained 1.64 percent, and Sierra Wireless, Inc. (SW.TO) fell 0.10 percent. BlackBerry Inc. (BB.TO) added 0.81 percent.

The Capped Telecommunication Index moved up 1.19 percent, as Rogers Communications Inc. (RCI.B.TO) added 0.75 percent, TELUS Corp. (T.TO) dipped 0.17 percent, and BCE Inc. (BCE.TO) gathered 0.64 percent.

Gildan Activewear (GIL.TO) is up 6.06 percent, after reporting first quarter adjusted earnings of $0.24 per share, which was in line with expectations.

On the economic front, data from Statistics Canada showed that Canada's new housing price index was flat in March, after rising 0.2 percent in February. Economists were expecting an increase of 0.1 percent.

Elsewhere, the unexpected decline in weekly jobless claims has provided a boost to investor sentiment with first-time claims for U.S. unemployment benefits unexpectedly declining in the week ended May 9, a report from the Labor Department showed Thursday. Initial jobless claims edged down to 264,000, a decrease of 1,000 from the previous week's unrevised level of 265,000. Economists expected initial jobless claims to climb to 275,000.

A Labor Department report on Thursday showed an unexpected decrease in U.S. producer prices in April, reflecting a sharp pullback in energy prices. The producer price index for final demand fell 0.4 percent in April after edging up 0.2 percent in March. The index was expected to show another 0.2 percent increase.