TSX Ends Higher On Gold, Mining Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fourth straight session on Friday, led by gold and mining stocks as gold prices rebounded.

Markets in Europe ended largely in the green, despite some disappointing German retail sales, eurozone unemployment and U.K. consumer confidence data weighed on investor sentiment. Investors are also combing through another large batch of corporate earnings reports.

Markets in the United States ended largely in the red after some disappointing data, with the S&P 500, the Nasdaq and the Dow Jones all trading in the red. Traders have taken a step back to analyze the outlook for interest rates following Wednesday's Federal Reserve announcement. A pair of U.S. economic reports released this morning came in with mixed results.

In some soft economic data, a Labor Department report on Friday showed U.S. Employment Cost Index rose 0.2 percent in the second quarter. This is the lowest rise in 33 years since the beginning of the report. Economists expected the index to rise 0.7 percent. The index fell 0.6 percent to 2.0 percent year-over-year.

Consumer sentiment in the U.S. pulled back more than previously estimated in July, a report from the University of Michigan said Friday. Nevertheless, a report from MNI Indicators on Friday showed the Chicago-area business activity to have expanded far more than expected in July, after two months of contraction.

The benchmark S&P/TSX Composite Index closed Friday at 14,468.44, up 85.66 points or 0.60 percent. The index scaled an intraday high of 14,501.58 and a low of 14,391.60.

On Thursday, the index closed up 80.96 points or 0.57 percent, at 14,382.76. The index scaled an intraday high of 14,386.75 and a low of 14,226.57.

Gold futures ended higher as the dollar trended lower after some disappointing economic data from the U.S. with a weaker than expected increase in labor costs and consumer sentiment pulling back more than previously estimated in July.

The Gold Index jumped 3.08 percent, with gold for August delivery gaining $6.40 or 0.6 percent, to settle at $1,095.10 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, IAMGOLD Corp. (IMG.TO) jumped 5.29 percent, B2Gold Corp. (BTO.TO) surged 5.19 percent, and Kinross Gold Corp. (K.TO) soared 7.62 percent.

Goldcorp Inc. (G.TO) jumped 6.01 percent, despite reporting a second quarter profit that topped expectations by a penny per share.

Eldorado Gold (ELD.TO) soared 11.39 percent, reporting a second quarter profit of $0.02 per share, down from $0.05 per share a year ago. Analysts were expecting earnings of $0.01 per share.

Yamana Gold (YRI.TO) surged 8.82 percent, after reporting a second quarter loss of $0.01, compared to the profit of $0.06 in the prior year.

Barrick Gold (ABX.TO) added 0.98 percent, after it agreed to sell a 50% stake in the Zaldívar copper mine in Chile to Antofagasta Plc for US$1.005 billion in cash.

The Capped Materials Index surged 2.75 percent, as Agrium Inc. (AGU.TO) moved up 2.22 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) added 1.17 percent.

Crude oil futures ended lower on supply glut fears with rig counts in the U.S. rising and over concerns of a slowing Chinese economy denting demand growth, even as the dollar weakened against some major currencies.

The Energy Index fell 0.55 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, plunging $1.4 or 2.9 percent, to settle at $47.12 a barrel on the New York Mercantile Exchange Friday.

Cenovus Energy Inc. (CVE.TO) added 0.32 percent, Suncor Energy Inc. (SU.TO) inched up 0.08 percent, and Encana Corp. (ECA.TO) dipped 0.30 percent

Among other energy stocks, Canadian Natural Resources Limited (CNQ.TO) moved up 0.79 percent, and Crescent Point Energy Corp. (CPG.TO) fell 1.93 percent.

Canadian Oil Sands (COS.TO) fell 2.10 percent, after it posted a second quarter loss of $0.26 per share.

Imperial Oil (IMO.TO) dipped 0.29 percent, after its second quarter profit sank to C$0.14 per share, from C$1.45 per share last year. Analysts had expected EPS of C$0.58.

Enbridge (ENB.TO) rose 1.28 percent, after its second quarter adjusted EPS came in at C$0.60. The consensus estimate was for EPS of C$0.47.

The Diversified Metals & Mining Index jumped 2.59 percent, as Teck Resources Limited (TCK-B.TO) gained 3.22 percent, Lundin Mining Corp. (LUN.TO) jumped 4.42 percent, and First Quantum Minerals Ltd. (FM.TO) gathered 3.26 percent.

The heavyweight Financial Index moved up 0.35 percent, as National Bank of Canada (NA.TO) gathered 0.22 percent, Bank of Montreal (BMO.TO) dipped 0.04 percent, and Royal Bank of Canada (RY.TO) up 0.67 percent.

Canadian Imperial Bank of Commerce (CM.TO) gained 0.98 percent, Bank of Nova Scotia (BNS.TO) advanced 0.55 percent, and Toronto-Dominion Bank (TD.TO) adding 0.19 percent.

The Capped Health Care Index gained 1.26 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) moved up 1.35 percent, and Concordia Healthcare Corp. (CXR.TO) gained 0.78 percent.

The Capped Information Technology Index inched up 0.15 percent, as BlackBerry Limited (BB.TO) fell 1.65 percent, Descartes Systems Group (DSG.TO) added 1.99 percent, and Constellation Software Inc. (CSU.TO) gained 0.52 percent.

The Capped Telecommunication Index shed 0.19 percent, as Rogers Communication (RCI-B.TO) added 0.59 percent, TELUS Corp. (T.TO) gained 0.22 percent, Manitoba Telecom Services Inc. (MBT.TO) dropped 2.26 percent, and BCE Inc. (BCE.TO) gathered 0.73 percent.

The Capped Industrials Index slipped 0.32 percent, as Bombardier (BBD.B.TO) plummeted 7.39 percent and Finning International Inc. (FTT.TO) shed 1.04 percent.

Fortis (FTS.TO) rose 3.94 percent, after its second quarter profit matched expectations.

TransCanada (TRP.TO) added 0.91 percent, after its second quarter profit surpassed expectations.

Gildan Activewear (GIL.TO) tanked 7.62 percent, after the company reported second quarter adjusted earnings of $0.42 per share, which fell short of the consensus estimate of $0.44 per share.

On the economic front, data from Statistics Canada showed that real gross domestic product fell 0.2 percent in May, while economists were expecting it to be flat. The GDP declined by 0.1 percent in April.

From the U.S., a report from MNI Indicators on Friday showed the Chicago-area business activity jumped to 54.7 in July from 49.4 in June, with a reading above 50 indicating growth in regional business activity. Economists had expected the index to show a more modest increase to 50.5.

Consumer sentiment in the U.S. pulled back more than previously estimated in July. A report from the University of Michigan said Friday the consumer sentiment index for July was downwardly revised to 93.1 from the mid-month reading of 93.3. With the downward revision, the index was even further below the final June reading of 96.1. Economists expected the index to be upwardly revised to 94.1.

Eurozone inflation remained stable at 0.2 percent in July, flash data from Eurostat showed Friday. Inflation has stayed in positive territory for the third straight month and July's rate matched economists' expectations.

The euro area unemployment rate remained unchanged in June at the lowest level seen since early 2012, Eurostat reported Friday. The jobless rate held steady at 11.1 percent in June, unchanged from May. This was the lowest rate recorded in the euro area since March 2012. The rate was forecast to drop to 11 percent.

Germany's retail sales declined unexpectedly in June after rising in the previous two months, preliminary figures from Destatis showed Friday. Retail sales fell a calendar and seasonally adjusted 2.3 percent month-on-month in June, in contrast to a 0.4 percent rise in May. Economists expected a 0.3 percent increase for the month. It was the first fall in three months.

Consumer confidence in the United Kingdom stalled in June, the latest survey from polling firm GfK revealed on Friday with an index score of +4. That missed forecasts for +5 and was down from +7 in June.

French consumer spending increased for the third straight month in June at the fastest pace in five months, largely led by robust food consumption, the statistical office Insee reported Friday. Consumer spending rose 0.4 percent month-on-month in June, while economists had expected a 0.5 percent increase. In May, spending has risen 0.1 percent, the same rate of growth in April.

France's producer prices continued to decline in June, figures from the statistical office Insee showed Friday. Producer prices in the domestic market fell 1.9 percent year-over-year in June. Prices in the total industry dropped 1.4 percent, while foreign market prices rose by 0.2 percent.