TSX Nibbling At All-time Closing High -- Canadian Commentary

(RTTNews) - Canadian stocks are edging higher Tuesday morning, shrugging off a slightly weak start. The benchmark index is flirting with an new all-time closing high, led by gains in technology, financial and consumer discretionary stocks.

The market stared off on a weak note with investors reacting to a couple of weak economic reports from the U.S. However, with commodity prices regaining some lost ground, stocks are slowly inching higher in mid morning trade.

The mood, however, is a bit cautious with investors looking ahead to the outcome of the two-day U.S. Federal Reserve meeting that will conclude on Wednesday. It is widely expected that the central bank will cut bond purchased by $10 billion to $35 billion a month.

Concerns about the situation in Iraq continue to weigh on the market, limiting gains to a notable extent.

The benchmark S&P/TSX Composite Index is up 29.73 points or 0.2 percent at 15,070.16, slightly below its all-time closing high of 15,073.13 on June 18, 2008. The index hit an all-time intraday high of 15,154.77 on June 6, 2008.

On Monday, the index ended up 38.82 points or 0.26 percent at 15,040.43, after scaling a high of 15,075.70 intraday, its highest levels since June 19, 2008.

Seabridge Gold Inc.(SEA.TO) shares are up nearly 4 percent after the company reported that it has entered into a comprehensive Benefits Agreement with the Nisga'a Nation in respect of Seabridge Gold's KSM Project, located in northwest British Columbia.

Royal Host Inc. (RYL.TO) announced that Michael McFeters, the Company's Chief Financial Officer, has resigned, effective June 20, 2014. McFeters informed the Company that he is leaving his position to pursue another opportunity. The stock is down 0.7 percent.

Technology stocks CGI Group Inc. (GIB.A.TO), Constellation Software Inc. (CSU.TO) and DH Corporation (DH.TO) are modestly higher. BlackBerry Limited (BB.TO), Descartes Systems Group Inc. (DSG.TO) and Avigilon Corporation (AVO.TO) are moving up 2.5 to 3 percent.

Among big six banks, National Bank of Canada (NA.TO) is up marginally, while the rest are higher by 0.3 to 0.5 percent.

In the energy sector, Canadian Natural Resources (CNQ.TO), Cenovus Energy Inc. (CVE.TO) are Talisman Energy (TLM.TO) declining 0.8 to 1 percent. Meanwhile, Encana Corporation (ECA.TO) is moving up 0.7 percent.

Gold stocks B2Gold Corp (BTO.TO), Barrick Gold Corporation (ABX.TO), Detour Gold Corporation (DGC.TO) and Kinross Gold Corporation (K.TO) are lower by 0.3 to 1 percent.

Consumer discretionary stocks Magna International (MG.TO), Thomson Reuters Corporation (TRI.TO), Canadian Tire Corporation (CTC.A.TO), Dollarama Inc. (DOL.TO), Aimia (AIM.TO), Linamar Corporation (LNR.TO) and Cineplex Inc. (CGX.TO) are advancing 0.3 to 0.7 percent.

In commodities, crude oil futures for August are down marginally at $106.26 a barrel, coming off the day's low of $105.47 a barrel, with investors looking ahead to the weekly oil report from American Petroleum Institute.

Natural gas for July is up slightly at $4.708 per million btu.

Gold futures for August are down $5.30 or 0.4 percent at $1,269.80 an ounce.

Silver for July is down $0.017 or 0.1 percent at $19,698 and ounce. Meanwhile, copper is up $0.11 or 0.35 percent at $3.061 per pound.

According to the data released by the U.S. Commerce Department, housing starts declined 6.5 percent to an annual rate of 1.001 million in May, after jumping 12.7 percent to a rate of 1.071 milion in April. Economists had expected housing starts to drop to a rate of 1.030 million.

Meanwhile, building permits dropped 6.4 percent to an annual rate of 991,000 in May from the downwardly revised April rate of 1.059 million.

A report from the Labor Department showed consumer prices in U.S. to have risen by a more than expected 0.4 percent in May, up from 0.3 percent in April. Economists had expected the index to edge up by about 0.2 percent.

Core consumer prices, which exclude food and energy prices, increased 0.3 percent in May after rising by 0.2 percent in the previous month. Core prices had also been expected to tick up by 0.2 percent.

In economic news from the eurozone, labor cost grew at a slower annual pace in the first three months of the year, rising 0.9 percent year-on-year, following a 1.6 percent gain in the fourth quarter last fiscal.

Meanwhile, U.K. inflation eased to a 55-month low of 1.5 percent in May, following a fall in transport and food costs. U.K. house price inflation accelerated in April, rising 9.9 percent annually, compared to an 8 percent rise in March.