TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a fifth straight session on Thursday, tracking largely declining global equity markets with commodity prices continuing to slide impacting resources stocks, and weakened the Canadian dollar. The majority of the sub-indices ended in the red, with mining, materials, financial, and industrial stocks recording the biggest losses.

The majority of the European markets ended in the red, even as Greece cleared another hurdle and stepped into the bailout zone after the government approved a second set of reform measures early Thursday. The reforms, which is the final requirement before the country can start the bailout negotiations with its creditors, included lifting of liquidity of banks, deposit security and renewing of the judicial system.

Markets in the United States ended firmly in negative territory. The major averages came off their worst levels at close, with the Dow shedding 0.7 percent and the Nasdaq dropping 0.5 percent. A mixed reaction to the latest batch of earnings news has been a major contributor to the choppy trading on Wall Street.

In an upbeat sign for the job market, a Labor Department report on Thursday showed first-time claims for U.S. unemployment benefits to have tumbled to its lowest level in over forty years for the week ended July 18.

Meanwhile, a Conference Board report showed a bigger than expected increase in its index of leading U.S. economic indicators, pointing to continued strength in the economic outlook for the remainder of the year.

The benchmark S&P/TSX Composite Index closed Thursday at 14,265.37, down 41.75 points or 0.29 percent. The index scaled an intraday high of 14,339.29 and a low of 14,168.90.

On Wednesday, the index closed down 69.12 points or 0.48 percent, at 14,307.12. The index scaled an intraday high of 14,361.01 and a low of 14,231.10.

Gold futures snapped 10 days of straight losses to end higher on Thursday, as the dollar weakened against some major currencies with bargain hunters swooping in after the precious metal's the longest losing streak in two decades.

The Gold Index plunged 3.81 percent, although gold for August delivery gained $2.60 or 0.2 percent, to settle at $1,094.10 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Kinross Gold Corp. (K.TO) dived 3.13 percent, Goldcorp Inc. (G.TO) fell 3.31 percent, and Yamana Gold Inc. (YRI.TO) plunged 5.69 percent.

IAMGOLD Corp. fell 4.24 percent, while Royal Gold, Inc. (RGL.TO) dropped 3.56 percent. B2Gold Corp. (BTO.TO) fell 4.00 percent and Lake Shore Gold Corp. (LSG.TO) dived 5.17 percent.

Barrick Gold Corp. (ABX.TO) declined 3.96 percent, after Ned Goodman resigned from its Board of Directors.

The Capped Materials Index plummeted 2.75 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.25 percent, Agrium Inc. (AGU.TO) dipped 0.46 percent, and Agnico Eagle Mines Limited (AEM.TO) slipped 4.02 percent.

Crude oil futures plunged to end at a near four-month low on concerns of a supply glut after official data from the Energy Information Administration on Wednesday showed a more than anticipated jump in U.S. crude stockpiles last week.

U.S. crude oil inventories increased 2.5 million barrels in the week ended July 17, while analysts expected stocks to decline 1.9 million barrels. Total U.S. crude oil inventories were at 463.9 million barrels end last week.

The Energy Index fell 0.42 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, dropping $0.74 or 1.5 percent, to settle at $48.45 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.30 percent, while Pacific Rubiales Energy Corp. (PRE.TO) gained 2.56 percent. Crescent Point Energy Corp. (CPG.TO) dropped 2.62 percent, while Encana Corp. (ECA.TO) dipped 1.49 percent. Enbridge Inc. fell 0.75 percent.

The Diversified Metals & Mining Index tumbled 4.56 percent, as First Quantum Minerals Ltd. (FM.TO) dived 4.43 percent, HudBay Minerals (HBM.TO) fell 2.46 percent.

Sherritt International (S.TO) shed 3.09 percent, while Lundin Mining Corp. (LUN.TO) dropped 2.41 percent.

Teck Resources Limited (TCK-B.TO) plunged 4.61 percent after reporting second quarter adjusted earnings of C$0.14 per share, compared to C$0.13 per share a year ago.

The heavyweight Financial Index shed 0.89 percent, as National Bank of Canada (NA.TO) fell 0.73 percent, Bank of Montreal (BMO.TO) dropped 0.39 percent, and Royal Bank of Canada (RY.TO) surrendered 1.24 percent.

Canadian Imperial Bank of Commerce (CM.TO) dropped 0.33 percent, Bank of Nova Scotia (BNS.TO) declined 0.62 percent, and Toronto-Dominion Bank (TD.TO) dropped 0.25 percent.

The Capped Health Care Index gained 1.91 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) surged 9.21 percent, having reported second quarter adjusted Cash earnings of $2.73 per share and raised its full year 2015 Cash earnings forecast to a range of $11.50 to $11.80 per share.

Extendicare Inc. (EXE.TO) fell 0.81 percent, and Concordia Healthcare Corp. (CXR.TO) advanced 0.31 percent.

The Capped Information Technology Index slipped 0.16 percent, as Constellation Software Inc. (CSU.TO) edged down 0.01 percent and Descartes Systems Group (DSG.TO) dropped 0.55 percent.

The Capped Telecommunication Index added 0.99 percent, as Rogers Communication (RCI-B.TO) gained 3.95 percent, TELUS Corp. (T.TO) moved up 0.34 percent, Manitoba Telecom Services Inc. gathered 0.70 percent, and BCE Inc. (BCE.TO) dropped 1.31 percent.

The Capped Industrials Index surrendered 1.16 percent, with Bombardier Inc. (BBD-A.TO) gaining 1.78 percent, Canadian Pacific Railway Limited (CP.TO) fell 1.81 percent and Canadian National Railway Company dipped 1.22 percent. BlackBerry (BB.TO) fell 1.10 percent.

Precision Drilling Corp. (PD.TO) shed 0.75 percent. The company reported a second quarter loss of C$0.10 per share, compared to a loss of C$0.02 per share last year.

Rogers Communication Inc. (RCI-A.TO) climbed 3.95 percent, having reported second quarter adjusted earnings of C$0.80 per share, which topped the consensus estimate of C$0.79 per share.

Loblaw Companies Limited (L.TO) gained 3.39 percent, after reporting second quarter adjusted earnings of C$0.85 per share. The consensus earnings estimate had been for C$0.83 per share.

On the economic front, Statistics Canada reported this morning that Canadian retail sales rose to a record in May amid record new car sales. Sales increased 1 per cent from the prior month to C$43 billion. Economists had been expecting an increase of 0.5 percent.

Elsewhere, a Labor Department report on Thursday showed first-time claims for U.S. unemployment benefits to have dropped to 255,000, a decrease of 26,000 from the previous week's unrevised level of 281,000. Economists expected jobless claims to edge down to 279,000. With the much bigger than expected decrease, jobless claims fell to their lowest level since hitting 233,000 in November of 1973.

Pointing to continued strength in the economic outlook for the remainder of the year, a Conference Board report on Thursday showed its leading economic index climbed 0.6 percent in June following an upwardly revised 0.8 percent increase in May. Economists expected the index to edge up by 0.2 percent compared to the 0.7 percent increase originally reported for the previous month.

U.K. retail sales declined unexpectedly in June, reflecting weak food and non-food store turnover, weighing marginally on the second quarter economic growth. Retail sales including automotive fuel declined 0.2 percent in June from the prior month, reversing a 0.3 percent rise in May, data from the Office for National Statistics showed Thursday. Sales were expected to grow 0.4 percent. This was the first drop in three months.

Japan posted a merchandise trade deficit of 69.045 billion yen in June, the Ministry of Finance said on Thursday. That missed forecast for a surplus of 45.8 billion following the downwardly revised 217.2 billion yen deficit in May.