TSX Settles Higher On Positive Data -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher on Thursday, tracking rising U.S. and European markets, driven by industrial, healthcare, and material stocks. The gains, however, were somewhat muted due to weakness in commodity prices with crude oil plunging more than three percent.

Crude oil prices slipped back below $60 per barrel on Thursday and metal prices also ticked lower. European markets ended largely in positive territory after some mixed economic news. German factory orders recovered in March but not as strong as economists expected. French industrial production also logged an unexpected decline in March.

Markets in the United States did struggle to find direction, but recovered to end modestly higher. Investors continued to remain uncertain ahead of Friday's employment report, with some soft private sector employment report yesterday. Nonetheless, weekly jobless claims earlier today came in stronger than anticipated.

Federal Reserve Chair Janet Yellen warned about high stock valuations yesterday, which had a negative impact on global markets. The Fed Chief on Wednesday indicated bond yields could surge as the central bank looks to normalize policy.

After reporting a notable pullback in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department's report on Thursday showed a slight rebound in initial jobless claims in the week ended May 2.

The benchmark S&P/TSX Composite Index is down 21.13 points or 0.14 percent at 15,002.76.

The benchmark S&P/TSX Composite Index closed Thursday at 15,088.82, up 64.93 points or 0.43 percent. The index scaled an intraday high of 15,103.53 and a low of 14,934.30.

On Wednesday, the index closed down 150.05 points or 0.99 percent, at 15,023.89, having scaled an intraday high of 15,148.51 and a low of 14,945.01.

The Diversified Metals & Mining Index inched down 0.01 percent, as First Quantum Minerals Ltd. (FM.TO) gained 1.59 percent, Lundin Mining (LUN.TO) dipped 0.47 percent,, and Teck Resources Limited (TCK.B.TO) fell 1.53 percent. Sherritt International Corp. (S.TO) added 0.33 percent.

Gold futures ended lower on some better-than-expected initial claims for unemployment benefits data from U.S., amid speculation that a decent U.S. jobs report could put the Federal Reserve back on track to raise interest rates this summer.

The Gold Index gained 1.48 percent, with gold for June delivery shedding $8.10 or 0.7 percent, to settle at $1,182.20 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) added 0.69 percent, Barrick Gold Corp. (ABX.TO) gained 1.12 percent, and Yamana Gold Inc. (YRI.TO) gathered 2.93 percent.

Eldorado Gold Corp. (ELD.TO) jumped 3.99 percent, while Agnico Eagle Mines Limited (AEM.TO) gained 3.25 percent.

Kinross Gold Corp. (K.TO) moved up 2.44 percent, while IAMGOLD (IMG.TO) added 0.39 percent.

The Capped Materials Index gained 1.69 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 2.48 percent, while Agrium Inc. (AGU.TO) moved up 2.24 percent.

Franco-Nevada Corp. (FNV.TO) gained 2.28 percent, while Silver Wheaton (SLW.TO) moved up 2.16 percent.

U.S. crude oil ended sharply lower as the dollar trended higher on some positive economic data from the U.S. showed better-than-expected numbers for initial claims for unemployment benefits.

The Energy Index dived 1.56 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, plunging $1.99 or 3.3 percent, to settle at $58.94 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Suncor Energy Inc. (SU.TO) shed 1.73 percent, while Crescent Point Energy Corp. (CPG.TO) dropped 2.64 percent. Cenovus Energy Inc. (CVE.TO) dipped 0.38 percent, while Canadian Oil Sands Limited (COS.TO) declined 2.77 percent.

Pacific Rubiales Energy Corp. (PRE.TO) added 1.14 percent, while Enbridge Inc. (ENB.TO) gained 0.25 percent.

Canadian Natural Resources Limited (CNQ.TO) fell 0.81 percent, after reporting first quarter adjusted earnings of C$0.02 per share, compared to the consensus estimate of a loss of C$0.03 per share.

Talisman Energy (TLM.TO) gained 0.62 percent. The company reported a first quarter net loss of $0.41 per share, compared to the profit of $0.47 per share last year.

The heavyweight Financial Index gained 0.11 percent, as Bank of Nova Scotia (BNS.TO) fell 0.77 percent, while Toronto-Dominion Bank (TD.TO) inched up 0.05 percent. Royal Bank of Canada (RY.TO) surrendered 0.28 percent, and Canadian Imperial Bank of Commerce (CM.TO) dropped 0.03 percent.

National Bank of Canada (NA.TO) dropped 0.19 percent, while Bank of Montreal (BMO.TO) added 0.13 percent.

The Capped Health Care Index added 1.46 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) gained 2.02 percent, Concordia Healthcare Corp. (CXR.TO) shed 0.24 percent, Catamaran Corp. (CCT.TO) slipped 0.03 percent, and Extendicare Inc. (EXE.TO) slipped 1.28 percent.

The Capped Industrials Index gained 1.43 percent, as Air Canada gathered 2.14 percent, Canadian Pacific Railway Limited (CP.TO) added 1.69 percent, Finning International Inc. (FTT.TO) dropped 2.73 percent, and

Canadian National Railway (CNR.TO) moved up 0.81 percent.

The Information Technology Index moved up 0.70 percent, as Descartes Systems Group Inc. (DSG.TO) gained 0.33 percent, and Sierra Wireless, Inc. (SW.TO) gathered 2.24 percent.

The Capped Telecommunication Index jumped 2.21 percent, as BCE Inc. (BCE.TO) gathered 0.11 percent, Rogers Communications Inc. (RCI.B.TO) dipped 0.09 percent, and TELUS Corp. (T.TO) moved up 1.86 percent.

BlackBerry (BB.TO) ended flat at $11.80 a share. The company announced a new partnership with T-Mobile US to bring the BlackBerry Classic to the Un-carrier's Data Strong network.

Bombardier Inc. (BBD.B.TO) surged 6.72 percent, after reporting first quarter adjusted earnings of $0.09 per share.

Manitoba Telecom Services Inc. (MBT.TO) surged 6.72 percent. The company announced after competing its strategic review that it will cut its workforce by 25 percent. The annual dividend will also be slashed to C$1.30 per share, from C$1.70 per share.

Premium Brands (PBH.TO) rose 1.54 percent, after reporting first quarter adjusted earnings surged to $0.24 per share from $0.01 per share in the previous year.

Cascades (CAS.TO) gained 3.85 percent, after its first quarter profit rose to $0.37 per share, from the loss of 0.01 per share in the prior year.

Quebecor (QBR-A.TO) gathered 1.55 percent. The company's adjusted income from continuing operations was C$0.33 per basic share in the first quarter.

Enerflex (EFX.TO) plunged 7.24 percent, after reporting first quarter earnings of $0.29 per share, compared to $0.05 a year ago.

On the economic front, Canadian building permits surged by 11.6 percent in March, according to a report this morning from Statistics Canada. This was the first increase in three months and the largest increase in six months. Economists had expected an increase of 2.0 percent.

Elsewhere, a Labor Department report on Thursday showed a slight rebound in initial jobless claims in the week ended May 2, after reporting a notable pullback in first-time claims for U.S. unemployment benefits in the previous week.

The report said initial jobless claims edged up to 265,000, an increase of 3,000 from the previous week's unrevised level of 262,000. Economists had expected jobless claims to climb to 280,000. While jobless claims showed a modest increase, they remained close to the fifteen-year low set in the previous week.

German factory orders recovered in March after falling for two straight months, supporting hopes of a moderate economic growth in the first quarter. Factory orders grew 0.9 percent month-on-month in March, offsetting February's 0.9 percent fall, data from Destatis showed Thursday. But the growth rate was weaker than a 1.5 percent rise forecast by economists.

French industrial production dropped unexpectedly in March, figures from the statistical office Insee showed Thursday. Industrial production dropped 0.3 percent month-on-month in March, defying economists' expectations for a 0.1 percent slight increase. In February, production had risen a revised 0.5 percent.

France's merchandise trade deficit for March narrowed from a year ago, data from the French Customs showed Thursday. The trade deficit contracted to EUR 4.575 billion from EUR 4.698 billion in the same month last year. However, the deficit figure was much larger than February's shortfall of EUR 3.623 billion.