TSX Snaps 12-Day Win Streak To End Slightly Lower -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a 12-day gain to end a tad lower on Friday, as financial stocks slipped with investors weighing some weak home sales data from the U.S., and as well some weak retail sales data from Canada with the severe winter impacting most of the region.

In economic news, stats revealed by the National Association of Realtors on Friday showed existing home sales in the U.S. dropped more than expected in January, providing further evidence of weakness in the housing market. Home buyers were constrained by tight credit, limited inventory, higher prices and higher mortgage interest rates.

The soft numbers are part of a string of disappointing housing data to have come out lately. Cumulatively, these have pointed to a slowdown in this key part of the economy.

The S&P/TSX Composite Index closed Friday at 14,205.72, down 4.65 points or 0.03 percent. The index scaled an intraday high of 14,253.16 and a low of 14,205.72.

Gold futures ended higher as investors mulled over some disappointing home sales data out of the U.S. and as well on the ongoing violence in Ukraine.

The Global Gold Index shed 0.39 percent, with gold futures for April delivery, the most actively traded contract, gaining $6.70 or 0.5 percent to close at $1,323.60 an ounce Friday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) slipped 0.79 percent, while Kinross Gold Corp. (K.TO) lost 0.68 percent. Goldcorp Inc. (G.TO) slipped 0.13 percent, while Yamana Gold Inc. (YRI.TO) dropped 0.51 percent. However, Barrick Gold Corp. (ABX.TO) ended flat at $23.29 a share.

The Capped Materials Index dipped 0.10 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.56 percent.

Agrium Inc. (AGU.TO) added 2.18 percent, despite reporting a significant drop in fourth-quarter profit due mainly to sluggish sales and lower prices.

Crude oil ended lower for a second straight session on some weak U.S. home sales data with investors continuing to mull over demand growth prospects after an official Energy Information Administration weekly oil report yesterday.

The Energy Index gained 0.23 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, shedding $0.55 or 0.5 percent to close at $102.20 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 0.64 percent, Talisman Energy Inc. (TLM.TO, TLM) dropped 0.77 percent, and Encana Corp. (ECA.TO, ECA) gained 1.79 percent. Cenovus Energy Inc. (CVE.TO) added 0.46 percent, while Suncor Energy Inc. (SU.TO) dropped 0.22 percent.

The heavyweight Financial Index dropped 0.18 percent with Royal Bank of Canada (RY.TO) down 0.33 percent and the Bank of Nova Scotia (BNS.TO) down 0.99 percent. Bank of Montreal (BMO.TO) added 0.32 percent, while Toronto-Dominion Bank (TD.TO) dropped 0.38 percent.

The Diversified Metals & Mining Index edged up 0.19 percent, with Lundin Mining Corp. (LUN.TO) down 1.53 percent, and Teck Resources Limited (TCK.B.TO) dropping 0.62 percent.

First Quantum Minerals (FM.TO) dropped 1.76 percent, after having reported yesterday a drop in profit for the fourth quarter, but in line with estimates.

The Information Technology Index dropped 0.69 percent, after BlackBerry Limited (BB.TO) dropping 2.31 percent.

The Capped Industrials Index edged up 0.05 percent, with Bombardier Inc. (BBD.B.TO) slipping 1.13 percent.

In corporate news, Loblaw Companies Limited (L.TO) gained 1.42 percent after indicating it will expand with 141 Joe Fresh low-cost apparel stores in 23 countries.

In economic news, Statistics Canada said December retail sales dropped 1.8 percent compared with November as winter storms walloped Toronto region.

Meanwhile, Canada's annual inflation rate for January increased to 1.5 percent from 1.2 percent in December. The January monthly prices rise was 0.3 percent from December, which was more than expected. Prices declined 0.2 percent in December.

In economic news from the U.S., the National Association of Realtors revealed sales of previously owned homes, known as existing home sales, fell 5.1 percent in January to an annual rate of 4.62 million. Economists expected the rate of sales to come in at 4.65 million. January's figure was also 5.1 percent below the pace seen at the same time of 2013.

Nevertheless, home prices showed strength in January with a 10.7 percent increase, compared to a year ago, as the median existing home price came in at $188,900.

British retail sales declined at the sharpest pace since April 2012 as food store sales weakened notably after Christmas, data from the Office for National Statistics showed on Friday. Retail sales volume, including automotive fuel, fell 1.5 percent month-on-month in January, the first decline in three months and the biggest since April 2012. Economists expected sales to fall 1 percent, after a 2.5 percent rise in December.

Meanwhile, U.K. budget surplus declined unexpectedly in January from the same period of last year, official data revealed Friday. Public sector net borrowing excluding temporary effects of financial interventions was -GBP 4.7 billion in January compared to -GBP 6 billion last year, the Office for National Statistics said. The surplus was expected to rise to GBP 8 billion.