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

(RTTNews) - Canadian stocks ended higher Wednesday, driven by the health care sector with Valeant Pharma continuing to rise and tracking some mixed U.S. and European equity markets. Investors cheered some upbeat private jobs data from south of the border while mulling over the Federal Reserve policy meet minutes.

In an upbeat sign for the U.S. labor market, a report from payroll processor Automatic Data Processing, Inc. (ADP) on Wednesday showed private sector employment to have increased more than expected in December.

Meanwhile, the minutes from the Federal Reserve's most recent meeting showed the central bank tapered its massive bond-buying program in December as they observed diminishing returns on the billions spent to keep the economic recovery going. Policy makers worried about the potential for excessive risk-taking in the financial sector with the same type of speculative lending that caused the panic of 2007. The Fed distinguished between its quantitative easing program and its benchmark interest rate, which it has vowed to keep near zero until the recovery is secured.

The S&P/TSX Composite Index closed Wednesday at 13,614.63, up 17.70 points or 0.13 percent. The index scaled an intraday high of 13,639.20 and a low of 13,586.76.

Crude oil dropped to end at a six-week low after an official weekly oil report showed stockpiles of distillates and gasoline in the U.S. to have increased more than expected, even as crude oil inventories declined albeit less than expected. Investor concerns continued to persist over an increased oil supply scenario with Libya's oil production and export expected to go normal.

The Energy Index dropped 0.28 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, plummeting $1.34 or 1.4 percent to close at $92.33 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 0.05 percent, while Suncor Energy Inc. (SU.TO) gained 0.81 percent. Talisman Energy Inc. (TLM.TO) moved up 0.56 percent, while Encana Corp. (ECA.TO) dropped 0.48 percent.

The Health Care Index gained 1.49 percent with drug maker Valeant Pharmaceuticals International, Inc. (VRX.TO) moved up 2.67 percent. The company had forecast cash earnings and revenue to grow 40 percent in 2014 yesterday, while aiming to be among the top five drug makers by market capitalization in the world end 2016.

The Information Technology Index gained 0.72 percent, with smartphone maker BlackBerry Limited (BB.TO) moving up 0.66 percent.

The Diversified Metals & Mining Index gained 0.74 percent, with Teck Resources Limited (TCK.B.TO) slipping 1.24 percent and First Quantum Minerals Ltd. (FM.TO) gathering 1.24 percent.

The Capped Materials Index added 0.36 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) gathering 2.90 percent.

Gold futures ended lower for a third straight session after some upbeat private jobs data from the U.S., while investors awaited the minutes from the Fed policy meet due later and the jobs data later in the week.

The Global Gold Index dropped 1.01 percent, with gold futures for February delivery, the most actively traded contract, slipping $4.10 or 0.3 percent to close at $1,225.50 an ounce Wednesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) edged down 0.20 percent, while Barrick Gold Corp. (ABX.TO) shed 1.53 percent. Yamana Gold Inc. (YRI.TO) moved up 1.55 percent.

The Financial Index moved up 0.32 percent with Bank of Montreal (BMO.TO) up 0.08 percent, Royal Bank of Canada (RY.TO) up 0.04 percent, the Bank of Nova Scotia (BNS.TO) down 0.12 percent, and Toronto-Dominion Bank (TD.TO) up 0.17 percent.

The Capped Industrials Index shed 0.58 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) slipping 1.31 percent.

In economic news from the U.S, a report from payroll processor Automatic Data Processing, Inc. (ADP) on Wednesday showed private sector employment increased more than expected in December. ADP said the private sector added 238,000 jobs in December following an upwardly revised increase of 229,000 jobs in November. Economists expected an increase of about 200,000 jobs compared to the addition of 215,000 jobs originally reported for the previous month.

From Europe, shop prices in the United Kingdom fell for the eighth consecutive month in December, dropping 0.8 percent on year, the British Retail Consortium said Wednesday. That missed the forecast for a contraction of 0.4 percent following the 0.3 percent decline in November. The decline was the largest on record for any month since the survey began in 2006.