TSX Ends Higher On U.S. Data - Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher Wednesday, driven largely by some upbeat economic data from the U.S., even as declining commodity prices sent gold stocks lower. Investors largely ignored hints from the U.S. Federal Reserve that it may begin tapering monthly bond-buying program sooner rather than later.

Most Asian markets ended lower on some soft manufacturing data out of China adding to worries over U.S. stimulus outlook, while European markets ended mixed. An index measuring manufacturing activity in China came in with a score of 50.4 in November, but was well shy of forecast of 50.8 and down from 50.9 in October.

In some positive economic news from the U.S., first-time claims for unemployment benefits fell more than expected in the week ended November 16, with claims falling to their lowest level in over a month, a Labor Department report showed Thursday. Meanwhile, producer prices in the U.S. decreased modestly in October due largely to a steep decline in energy prices, the Labor Department said.

On the negative side, a Federal Reserve Bank of Philadelphia report on Thursday showed the Philadelphia-area manufacturing activity to have slowed much more than anticipated in November, with the index of activity in the sector falling to a six-month low.

The S&P/TSX Composite Index closed Thursday at 13,475.33, up 45.32 points or 0.34 percent. The index scaled an intraday high of 13,505.35 and a low of 13,430.14.

Crude oil prices surged to end at a near one-month high Thursday, with investors eying improved demand prospects after some upbeat jobless claims data out of the U.S. with focus on the upcoming talks with Iran later this week.

The Energy Index gathered 0.92 percent, with U.S. crude oil futures for January delivery, the most actively traded contract, soaring $1.59 or 1.7 percent to close at $95.44 a barrel Thursday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) added 0.34 percent, while Encana Corp. (ECA.TO) gained 0.64 percent. Talisman Energy Inc. (TLM.TO) added 1.27 percent, while Canadian Natural Resources (CNQ.TO) rose 1.70 percent.

Suncor Energy (SU.TO) edged up 0.29 percent after forecasting oil production for 2014 to increase by about 10 percent and projects capital spending for the year of C$7.80 billion. The company said its planned average production for 2014 is 565,000 to 610,000 barrels of oil equivalent per day.

Secure Energy Services (SES.TO) added 0.75 percent after announcing $95.7 million bought deal equity financing to fund capital expenditures.

The Information Technology Index added 0.78 percent, with smartphone maker BlackBerry Limited (BB.TO) down 0.16 percent.

The Diversified Metals & Mining Index gained 0.31 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.65 percent and Lundin Mining Corp. (LUN.TO) down 0.46 percent. Teck Resources (TCK.B.TO) ended flat at $26.80 a share..

The Capped Materials Index slipped 0.50 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) surrendering 2.03 percent.

Gold ended sharply lower for a second straight session, mostly on some upbeat economic data out of the U.S., even as the Federal Reserve hinted at a possible taper to its quantitative easing program.

The Global Gold Index dropped 0.82 percent, with gold futures for December delivery, the most actively traded contract, plunging $14.40 or 1.1 percent to close at $1,243.60 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 0.85 percent, while IAMGOLD Corp. (IMG.TO) shed 0.44 percent. Kinross Gold Corp. (K.TO) slipped 1.21 percent, while Barrick Gold Corp. (ABX.TO) surrendered 0.84 percent.

The Financial Index added 0.09 percent with Bank of Montreal (BMO.TO) down 0.14 percent, while Royal Bank of Canada (RY.TO) shed 0.17 percent. The Bank of Nova Scotia (BNS.TO) dropped 0.45 percent, while Toronto-Dominion Bank (TD.TO) added 0.30 percent.

The Capped Industrials Index gathered 0.82 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 0.43 percent.

Apparel maker Gildan Activewear (GIL.TO) lost 3.31 percent after reporting fourth-quarter adjusted net earnings of $102.0 million or $0.83 per share for the quarter, short of analysts expectations of $0.84 per share. The company approved a 20 percent increase in current quarterly dividend and declared a cash dividend of $0.108 per share,.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 323,000, a decrease of 21,000 from the previous week's revised figure of 344,000. Economists had been expecting initial jobless claims to dip to 335,000 from the 339,000 originally reported for the previous week

In a separate report the Labor Department said its producer price index dipped by 0.2 percent in October after edging down by 0.1 percent in September. The drop by the index matched economist estimates. Meanwhile, core producer prices, which exclude food and energy, rose by 0.2 percent in October after inching up by 0.1 percent in the previous month. Core prices had been expected to tick up by 0.1 percent.

From the euro zone, German private sector business activity rose at the fastest pace in ten months in November, flash results of a survey by Markit Economics revealed. The composite output index, that measures business activity across both manufacturing and service sectors, rose to a ten-month high of 54.3 in November from 53.2 in October. The manufacturing purchasing managers' index, a measure of the country's factory sector performance, increased to a 29-month high of 52.5 in November from 51.7 in October. Economists had forecast an increase to 52.

Meanwhile, Growth of Euro zone's private sector business activity moderated for a second month running in November, flash results of a survey by Markit Economics revealed The composite output index, that measures business activity across both manufacturing and service sectors, fell to a three-month low of 51.5 in November from 51.9 in October. Economists had forecast an increase to 52.