TSX Ends Sharply Higher As Resource Stocks Gain -- Canadian Commentary

(RTTNews) - Canadian stocks ended sharply higher on Tuesday, as higher commodity prices lifted resource stocks, with global equity markets responding positively after some upbeat consumer confidence data from the U.S.

Some fairly impressive corporate earnings reports from the U.S. and Europe also contributed to the uptick.

Investors also look ahead to the U.S. Federal Reserve's monetary policy statement, due on Wednesday, with speculations the Fed will give the low interest regime a longer run.

In economic news, U.S. consumer confidence in October rebounded significantly, after reporting a sharp pullback in the previous month. The index scaled its highest level since October of 2007.

However, new orders for U.S. manufactured durable goods unexpectedly declined in September, extending the steep drop seen in August. Meanwhile, a report from Standard & Poor's on Tuesday showed home prices in major U.S. metropolitan areas to have increased at a notably slower pace in August.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,624.25, up 155.25 points or 1.07 percent. The index scaled a intraday high of 14,628.62 and a low of 14,473.87.

On Monday, the index closed lower led by resource stocks on some sharp sell-off in the energy sector after after Goldman Sachs trimmed its crude oil price forecast for 2015.

Crude oil ended higher with the dollar trending lower against some major currencies, even as investors await the official inventories data and the Federal Reserve's monetary policy statement, both due Wednesday.

The Energy Index jumped 2.07 percent, with U.S. crude oil futures for December delivery gaining $0.42 or 0.5 percent to close at $81.42 a barrel on the Nymex Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) gathered 2.23 percent, Canadian Natural Resources Limited (CNQ.TO) gained 2.08 percent, Encana Corp. (ECA.TO) up 2.90 percent, Talisman Energy Inc. (TLM.TO) up 3.43 percent, and Cenovus Energy Inc. (CVE.TO) gathered 2.98 percent.

Husky Energy Inc. (HSE.TO) moved up 0.63 percent, while Canadian Oil Sands Limited (COS.TO) added 1.99 percent.

Bankers Petroleum Ltd. (BNK.TO) gained 1.67 percent, after having tumbled a near 9 percent yesterday.

The Healthcare Index inched up 0.02 percent, with Extendicare Inc. (EXE.TO) adding 0.25 percent, Catamaran Corp. (CCT.TO) edging up 0.04 percent, and Valeant Pharmaceuticals Inc (VRX.TO) slipping 0.23 percent.

Gold futures ended a tad higher on a weak dollar, ahead of the U.S. Federal Reserve's monetary policy decision later this week in which the Fed may not hike rates any time soon.

The Global Gold Index gained 1.08 percent, with gold for December delivery inching up $0.10 to settle at $1,229.40 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Agnico Eagle Mines Limited (AEM.TO) gained 2.17 percent, Goldcorp Inc. (G.TO) added 1.46 percent, Kinross Gold Corp. (K.TO) moved up 1.32 percent, Yamana Gold Inc. (YRI.TO) advanced 1.62 percent, Barrick Gold Corp. (ABX.TO) gained 0.94 percent, and Eldorado Gold Corp. (ELD.TO) inched up 0.13 percent.

The Capped Materials Index added 1.24 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) inching up 0.03 percent.

The heavyweight Financial Index moved up 0.78 percent with all major banks ending on a positive note. Toronto-Dominion Bank (TD.TO) added 1.05 percent, Canadian Imperial Bank of Commerce (CM.TO) moved up 0.92 percent, Bank of Montreal (BMO.TO) gained 0.70 percent, and National Bank of Canada (NA.TO) gathered 0.55 percent.

Royal Bank of Canada (RY.TO) added 0.51 percent, while Bank of Nova Scotia (BNS.TO) gained 0.88 percent.

The Diversified Metals & Mining Index jumped 2.57 percent, as First Quantum Minerals Ltd. (FM.TO) added 1.07 percent, Lundin Mining Corp. (LUN.TO) gained 4.37 percent, and Teck Resources Limited (TCK.B.TO) up 2.77 percent.

The Capped Industrials Index gathered 0.81 percent, with Bombardier Inc. (BBD.B.TO) adding 0.26 percent, Air Canada (AC.B.TO) up 0.12 percent, and Canadian Pacific Railway Limited (CP.TO) gaining 0.84 percent.

The Information Technology Index gained 1.40 percent, with smartphone maker BlackBerry Limited (BB.TO) adding 1.97 percent.

Among other tech stocks, Descartes Systems Group Inc. (DSG.TO) added 2.15 percent, Open Text Corp. (OTC.TO) gained 1.44 percent, and Celestica Inc. (CLS.TO) added 0.59 percent, and CGI Group Inc. (GIB.A.TO) advanced 1.63 percent.

The Telecom Index advanced 0.69 percent with BCE Inc. (BCE.TO) adding 0.41 percent and TELUS Corp. (T.TO) gaining 1.45 percent.

The Consumer Staples Index added 0.50 percent, with Metro Inc. (MRU.TO) up 1.35 percent, Loblaw Companies Limited (L.TO) added 0.36 percent and Maple Leaf Foods Inc. (MFI.TO) up 1.72 percent.

The Consumer Discretionary Index advanced 0.93 percent with Magna International Inc. (MG.TO) up 1.45 percent and Thomson Reuters Corporation (TRI.TO) up 0.60 percent.

Norbord Inc. (NBD.TO) plunged 7.63 percent after reporting third-quarter net income of $5 million or $0.09 per share, compared to $27 million or $0.50 per share in the year ago quarter.

FirstService Corporation (FSV.TO) dived 6.9 5 percent, after reporting adjusted third quarter earnings of $59.3 million, up 7 percent from the year ago quarter and adjusted earnings per share up 9 percent at $0.75.

In economic news, from the U.S., a report from the Commerce Department showed durable goods orders to have declined 1.3 percent in September, falling for a second successive month. Economists expected durable goods orders to rise 0.5 percent month-over-month.

Excluding orders for transportation equipment, durable goods orders fell by a modest 0.2 percent in September compared to a 0.7 percent increase in the previous month. Excluding transportation orders were expected to rise 0.5 percent.

A report from the Conference Board showed U.S. consumer confidence to have climbed to 94.5 in October, rebounding from an upwardly revised 89.0 in September. Economists expected the index to edge up to 87.0 from the 86.0 originally reported for the previous month.

Standard & Poor's S&P/Case-Shiller 20-City Composite Home Price Index increased at an annual rate of 5.6 percent in August, reflecting a notable slowdown from the 6.7 percent growth reported for July. Economists expected the pace of year-over-year growth to slow to 5.8 percent.

From Europe, U.K. house prices in September declined for the first time in six months, data from Land Registry showed Tuesday. House prices dropped 0.2 percent in September from August, when prices were up 1.1 percent. This was the first decline since March.