TSX Ends Marginally Higher On Mining, Financial Stocks - Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end slightly higher Friday, on the back of some recent upbeat macroeconomic data from the U.S., Europe and China, led by mining and financial stocks. Nevertheless, the gains were limited on some soft macroeconomic data out of the U.S. today with less-than-expected growth in non-farm payroll employment and factory orders.

Employment in the U.S. increased less than what economists expected in July, a Labor Department report showed Friday, although the unemployment rate still dropped to its lowest in over four years. Meanwhile, new orders for manufactured goods rose less than expected in June, as orders for non-durable goods dropped, partly offsetting a jump in orders for durable goods.

The S&P/TSX Composite Index closed Friday at 12,603.25, up 9.29 points or 0.07 percent. The index touched an intraday high of 12,627.64 and a low of 12,579.02.

The Capped Materials Index shed 0.80 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) slipping 1.57 percent.

The Global Gold Index slipped 1.49 percent, with gold futures for December delivery dropping $0.70 or to close at $1,310.50 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) gained 0.76 percent. IAMGOLD Corp. (IMG.TO) shed 3.46 percent, while Goldcorp Inc. (G.TO) lost 1.44 percent. Barrick Gold Corp. (ABX.TO) shed 0.52 percent, while Yamana Gold Inc. (YRI.TO) dropped 0.40 percent.

Eldorado Gold Corp. (ELD.TO) slipped 1.29 percent after reporting its second-quarter profit declined to $43.3 million or $0.06 per share from $46.6 million or $0.07 per share in the same quarter of 2012. Analysts expected earnings of $0.08 per share for the quarter.

The Diversified Metals & Mining Index gained 0.95 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.54 percent. Osisko Mining Corp. (OSK.TO) gained 1.95 percent, while Teck Resources Limited (TCK.B.TO) gained 0.77 percent. Lundin Mining Corp. (LUN.TO) added 0.25 percent.

The Energy Index shed 0.05 percent, with U.S. crude oil futures for September delivery dropping $0.95 or 0.9 percent to close at $106.94 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) down 0.39 percent, while Talisman Energy (TLM.TO) moved up 0.34 percent. Encana Corp. (ECA.TO) gained 1.27 percent, while Suncor Energy Inc. (SU.TO) added 0.50 percent.

The Financial Index gained 0.43 percent with Bank of Montreal (BMO.TO) up 0.22 percent, Royal Bank of Canada (RY.TO) up 0.77 percent, and Toronto-Dominion Bank adding 0.66 percent.

Asset management company IGM Financial Inc. (IGM.TO) slipped 3.46 percent after reporting improved second-quarter net earnings of C$190.9 million or C$0.76 per share compared to C$171.7 million or C$0.67 per share last year. Operating earnings for the quarter were C$190.9 million or C$0.76 per share, compared to of C$178.1 million or C$0.69 per share last year. Analysts expected the company to earn C$0.76 per share for the quarter.

The Information Technology Index dropped 0.54 percent, although BlackBerry Limited (BB.TO) added 2.21 percent.

The Capped Industrials Index slipped 0.76 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.41 percent.

Engineering services company Stantec Inc. (STN.TO) shed 0.52 percent even after reporting second-quarter net income of C$36.2 million or C$0.78 per share, up from C$30.8 million or C$0.67 per share last year. Analysts expected earnings of C$0.75 per share for the quarter.

Life and health insurance services provider Industrial Alliance Insurance and Financial Services Inc. (IAG.TO) slipped 1.56 percent after reporting a marginally higher second quarter net income of $73.3 million or $0.74 per share, compared to $66.0 million or $0.70 per share in the year-ago quarter.

In economic news from the US, the Labor Department said non-farm payroll employment increased by 162,000 jobs in July following a downwardly revised increase of 188,000 jobs in June. Economists had expected employment to increase by about 175,000 jobs compared to the addition of 195,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dipped to 7.4 percent in July from 7.6 percent in June. The unemployment rate had been expected to edge down to 7.5 percent.

Meanwhile, the Commerce Department said personal spending increased by 0.5 percent in June after edging up by 0.2 percent in May. The increase in spending exceeded economist estimates for a 0.4 percent increase. Additionally, the Commerce Department said personal income rose by 0.3 percent in June following a 0.4 percent increase in May. Economists had expected income to increase by 0.4 percent.

With a drop in orders for non-durable goods partly offsetting a jump in orders for durable goods, the U.S. Commerce Department said new orders for manufactured goods rose less than expected in June. Factory orders increased 1.5 percent in June following a revised 3.0 percent increase in May. Economists expected orders to rise by about 2.3 percent.

Elsewhere, eurozone producer prices rose 0.3 percent in June from a year ago, reversing May's 0.2 percent fall, Eurostat reported. The rate matched economists' expectations. The industrial producer price index remained stable on a monthly basis as expected by economists, following a 0.3 percent drop in May.

British house prices recorded their strongest growth in nearly three years in July and the average home value climbed to the highest level in five years. The house price index increased 3.9 percent on an annual basis in July, notably faster than June's 1.9 percent rise, the Nationwide Building Society said Friday.