TSX Ends Lower After Yellen Comments -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Friday, with Federal Reserve Chair Janet Yellen's address at the Jackson Hole Symposium not providing much clarity about the Fed 's interest rate outlook.

Investors mulled over Federal Reserve Chair Janet Yellen's warning that rate hikes could come sooner than expected if the U.S. economic recovery is sustained. She was speaking at the Fed's annual Jackson Hole symposium, addressing fellow central bankers.

Yellen also said the Fed's internal labor market indicators suggest the recent decline in the unemployment rate overstates the improvement in overall labor market conditions.

Fed members are engaged in a tricky debate over when to raise rates from near zero for the first time in six years. With the Fed charged with promoting maximum employment, the debate hinges on a thorough analysis of slack in the labor market, the subject of today's speech by Yellen.

The minutes of the Federal Reserve's recent policy meeting indicated some fierce debate over interest rates with some members favoring a hike sooner than earlier forecast.

Investors are largely ignored some strong results from Royal Bank of Canada and reports showing a bigger than expected increase in Canadian retail sales.

Falling crude oil prices and concerns about geopolitical worries due to the ongoing conflicts in Ukraine and the Middle East are also weighed on the market.

The S&P/TSX Composite Index closed Friday at 15,535.55, down 20.54 points or 0.13 percent. The index scaled a intraday high of 15,574.23 and a low of 15,495.06. The index recorded a gain of about 1.5 percent for the week.

Crude oil ended lower on demand growth concerns, despite some recent upbeat economic data out of the U.S. and a bigger than expected decline in U.S. crude oil stockpiles last week.

The Energy Index inched down 0.01 percent, with U.S. crude oil futures for September dropping $0.31 or 0.3 percent to close at $93.65 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dipped 0.33 percent, Enbridge Inc. (ENB.TO) dropped 0.75 percent, Suncor Energy Inc. (SU.TO) added 0.48 percent, Encana Corp. (ECA.TO) fell 0.04 percent, and Canadian Natural Resources Limited (CNQ.TO) down 0.30 percent.

Despite better than expected results from Royal Bank of Canada, bank stocks are a bit subdued. The Financial Index is up 0.02 percent.

Royal Bank of Canada (RY.TO) dropped 1.05 percent, despite reporting a third-quarter profit of C$2.378 billion, up C$93 million or 4 percent from the prior year. Earnings per share was C$1.59 up from C$1.51 in the prior year. Adjusted earnings per share rose to C$1.62 from C$1.45 in the prior year.

Among other major banks, Toronto-Dominion Bank slipped 0.40 percent and Bank of Nova Scotia (BNS.TO) down 0.41 percent.

Canadian Imperial Bank Of Commerce (CM.TO) slipped 0.32 percent, and Bank of Montreal (BMO.TO) down 0.18 percent.

Gold futures ended higher on Friday, after Fed Chair Janet Yellen's address to fellow central bankers showed little clarity as to when a rate hike could be expected.

Global Gold Index slipped 0.14 percent, with gold for December delivery gaining $4.80 or 0.4 percent to close at $1,280.20 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 0.73 percent, Eldorado Gold Corp. (ELD.TO) gained 0.92 percent, and Barrick Gold Corp. (ABX.TO) declined 1.04 percent.

The Capped Materials Index slipped 0.17 percent as gold stocks stumbled, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.93 percent.

The Diversified Metals & Mining Index added 0.22 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.20 percent, Lundin Mining Corp. (LUN.TO) down 0.82 percent, and Teck Resources Limited (TCK.B.TO) added 0.28 percent.

The Capped Industrials Index gained 0.10 percent, with Bombardier Inc. (BBD.B.TO) ending flat at $3.81 a share and Air Canada (AC.B.TO) up 1.82 percent.

The Capped Telecommunications Index moved up 0.05 percent, with Rogers Communications Inc. (RCI.B.TO) adding 0.21 percent.

The Information Technology Index added 0.34 percent, with BlackBerry Limited (BB.TO) up 0.83 percent.

In economic news, data from Statistics Canada showed Canada's retail sales to have risen for the sixth consecutive month, moving up 1.1 percent to C$42.6 billion in June. The reading was higher than forecasts of 0.3 percent, after advancing 0.7 percent last month.

Meanwhile, CPI rose 2.1 percent on year in July, following a 2.4 percent increase in June, down from a forecast for a 2.2 percent rise.

The CPI declined by 0.2 percent on month, worse than expectations for a 0.1 percent decline. The index rose 0.1 percent a month earlier. Core CPI came in at 0.1 percent in July on a monthly basis, matching consensus.

Speaking at the Jackson Hole Symposium, Federal Reserve Chair Janet Yellen said the central bank could go either way with regard to interest rates. Yellen said an increase in rates could come sooner than expected if the progress on inflation and the labor market occurred more rapidly than anticipated. At the same time, future calls on rates could be more accommodative in the event of a disappointing economic performance.

From Europe, U.K.'s house price sentiment index rose in August at the slowest pace in five months, results of a survey by Knight Frank and Markit Economics showed Friday. The house price sentiment index, an indicator of house price trends, dropped to 61.8 in August from 62.4 in July. However, a reading above 50 indicates that prices are rising. It was the seventeenth consecutive month of increase.