TSX Ends Lower On Mixed Data, Fed Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended marginally lower Friday, on some downbeat macroeconomic data amid fears the Federal Reserve would tone down its quantitative easing program sooner than expected. Nonetheless, the downturn was limited after some upbeat industrial data from China indicative of signs that the economy is on the way to recovery.

Investors weighed some Canadian data with unemployment in the nation ticking up, even as housing starts came in below consensus estimates.

China's industrial output growth improved significantly in July, data from the National Bureau of Statistics showed Friday. China's industrial value-added output for July expanded 9.7 percent year-on-year, as compared to the 8.9 percent growth recorded in June. The growth is the highest over the past five months. For the year-to-date period, or the first seven months of the year, industrial value-added output rose 9.4 percent from a year ago.

Elsewhere, China's consumer price inflation remained unchanged in July, while producer prices declined for a seventeenth consecutive month, giving the central bank more space to loosen monetary policy amid sluggish growth. The consumer price inflation was at 2.7 percent, unchanged from June's four-month high, data from the National Bureau of Statistics showed.

The S&P/TSX Composite Index closed Friday at 12,542.13, down 10.79 points or 0.09 percent. The index touched an intraday high of 12,557.31 and a low of 12,502.23.

The Capped Materials Index gained 0.98 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 2.87 percent. Crop nutrients maker Agrium Inc. (AGU.TO) slipped 2.50 percent.

The Global Gold Index added 1.69 percent, with gold futures for December delivery gaining $2.30 or 0.2 percent to close at $1,312.20 an ounce Friday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) gathered 2.27 percent, while Yamana Gold Inc. (YRI.TO) edged up 0.80 percent. Kinross Gold Corp. (K.TO) gathered 0.18 percent, IAMGOLD Corp. (IMG.TO) moved up 1.36 percent, and Goldcorp Inc. (G.TO) added 0.39 percent.

The Diversified Metals & Mining Index jumped 4.05 percent, with First Quantum Minerals Ltd. (FM.TO) surging 4.79 percent. Osisko Mining Corp. (OSK.TO) jumped 4.74 percent, Teck Resources Limited (TCK.B.TO) gained 3.88 percent, and Lundin Mining Corp. (LUN.TO) gathered 4.28 percent.

The Energy Index slipped 0.09 percent, although U.S. crude oil futures for September delivery surged $2.57 or 2.5 percent to close at $105.97 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) gained 1.01 percent, while Talisman Energy (TLM.TO) gained 0.35 percent. Encana Corp. (ECA.TO) dropped 0.06 percent, while Suncor Energy Inc. (SU.TO) added 0.27 percent.

The Financial Index dropped 0.34 percent with Bank of Montreal (BMO.TO) down 0.11 percent, Royal Bank of Canada (RY.TO) lost 0.59 percent, and Toronto-Dominion Bank (TD.TO) shed 0.53 percent. Manulife Financial Corp. (MFC.TO) slid 0.34 percent.

The Information Technology Index gathered 0.50 percent, with BlackBerry Limited (BB.TO) adding 5.68 percent.

The Capped Industrials Index shed 0.97 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.83 percent.

Crude oil and natural gas explorer Enerplus Corporation (ERF.TO) surged over 5 percent despite reporting lower second-quarter net income of C$52.6 million or C$0.26 per share compared to C$100.2 million or C$0.51 per share last year.

Automotive supplier Magna International Inc. (MG.TO) gained 3.54 percent after reporting higher second-quarter net income of $415 million or $1.78 per share compared to $349 million or $1.48 per share in the same quarter last year. Analysts expected the company to report earnings of $1.64 per share for the quarter.

Woods products company Stella-Jones Inc. (SJ.TO) dropped 0.26 percent after reporting improved second-quarter net income of C$26.4 million or C$1.53 per share, but below analysts estimate of C$1.59 per share.

An open-ended real estate investment trust Dundee REIT (D_UN.TO) slipped 0.07 percent after reporting improved funds from operations for the second quarter of C$76.0 million or C$0.72 per unit compared to C$66.6 million or C$0.72 per unit for the year-ago quarter.

Brookfield Asset Management Inc. (BAM_A.TO) eased 1.53 percent after reporting second-quarter funds from operations surged of $464 million, compared to $159 million last year, with funds from operations per share improving to $0.68 from $0.20 in the same quarter last year.

Juvenile products and bicycle company Dorel Industries Inc. (DII_A.TO, DII_B.TO ) dived4.16 percent after reporting a lower second-quarter net income of $13.2 million or $0.41 per share, compared with $30.3 million or $0.95 per share during the same quarter last year.

In economic news, Statistics Canada said employment in the nation decreased by 39,000 led by declines among youths and the unemployment rate rose 0.1 percentage points to 7.2 percent. Economists expected unemployment to remain at 7.1 percent.

Meanwhile, Canada Mortgage and Housing Corporation said housing starts in July were at a seasonally adjusted annual rate of 192,900, down from 193,800 in June and below consensus the of 193,500.

In economic news from the U.S., the Commerce Department said wholesale inventories dipped 0.2 percent following a revised 0.6 percent decrease in May. The drop was a surprise as economists expected inventories to increase 0.4 percent compared to the 0.5 percent decline originally reported for the previous month.

China's factory gate prices extended its decline to 17 months, underscoring weakness in domestic demand. The producer price index fell 2.3 percent year-on-year in July, following a 2.7 percent drop in June. This was forecast to decline 2.1 percent.

Elsewhere, the deficit on U.K.'s trade in goods declined to GBP 8.1 billion in June from GBP 8.7 billion in May, the Office for National Statistics reported. The decrease of GBP 0.6 billion remains within the range of normal month-on-month movement.