Canadian Stocks Are Bouncing Back In Early Trade -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Friday, as the market attempts to rebound from yesterday's drop. Strength in the U.S. markets is helping to drive the market higher, with a number of global markets closed for the May Day holiday. Mining, gold and healthcare stocks are among the best performers in Canada this morning.

The majority of the European markets are closed for the May Day holiday Friday. The FTSE 100 is one of the few European markets open today and it is posting modest gains in thin trading.

Markets in the United States are also climbing this morning, following yesterday's sell-off. Bargain hunting appears to be the driving force behind the gains. The losses seen over the past few sessions have pulled the Nasdaq and the S&P 500 down well off the record closing highs set last Friday.

Economic activity in the U.S. manufacturing sector continued to expand in the month of April, according to a report released by the Institute for Supply Management on Friday, although the index of activity in the sector unexpectedly held steady.

The ISM said its purchasing managers index came in at 51.5 in April, unchanged from the previous month. While a reading above 50 indicates continued growth in the manufacturing sector, economists had expected the index to edge up to 52.0.

Consumer sentiment in the U.S. saw a modest improvement in the month of April, according to a report released by the University of Michigan on Friday. The report said the consumer sentiment index for April came in at 95.9, unrevised from the mid-month reading and up from 93.0 in March. Economists had expected the index to be upwardly revised to 96.0.

Partly reflecting a sharp pullback in spending on residential construction, the Commerce Department released a report Friday morning showing an unexpected decrease in U.S. construction spending in the month of March.

The report said construction spending fell by 0.6 percent to annual rate of $966.6 billion in March from the revised February estimate of $972.9 billion. The decrease came as a surprise to economists, who had been expecting construction spending to increase by about 0.5 percent.

The benchmark S&P/TSX Composite Index is up 97.44 points or 0.64 percent at 15,321.96.

On Thursday, the index closed down 122.82 points or 0.80 percent, at 15,224.52. The index scaled an intraday high of 15,324.20 and a low of 15,192.46.

The Diversified Metal and Mining Index is rising by 2.44 percent. HudBay Minerals (HBM.TO) is rising by 2.51 percent and Teck Resources (TCK-A.TO) is increasing by 2.04 percent. Lundin Mining (LUN.TO) is surging by 5.00 percent and Finning International (FTT.TO) is up 0.53 percent. Sherritt International (S.TO) is higher by 3.20 percent.

First Quantum Minerals (FM.TO) is advancing by 2.81 percent. The company reported a first quarter loss of $0.14 per share, compared to the profit of $0.21 per share last year.

The Gold Index is climbing by 1.27 percent. Gold prices were stable Friday morning after steep losses in the previous session, with the Federal Reserve's open-ended statement on interest rates leaving traders to speculate on when tightening will begin.

A June rate hike is apparently on the table despite first quarter economic weakness, as recent data has hinted that the U.S. job market is heating up in time for summer.

Barrick Gold (ABX.TO) is gaining 0.83 percent and Goldcorp (G.TO) is increasing by 1.06 percent. B2Gold (BTO.TO) is higher by 0.53 percent. Kinross Gold (K.TO) is advancing by 0.68 percent and Royal Gold (RGL.TO) is adding 3.56 percent.

Eldorado Gold (ELD.TO) is up 3.66 percent, after it reported a first quarter adjusted profit of $0.03 per share.

Centerra Gold (CG.TO) is rising by 4.01 percent, after it declared a quarterly dividend of C$0.04 per share.

The Capped Materials Index is also higher by 1.72 percent. Franco-Nevada (FNV.TO) is up 3.45 percent and Silver Wheaton (SLW.TO) is rising by 2.82 percent. Agrium (AGU.TO) is gaining 1.19 percent and Potash Corp. of Saskatchewan (POT.TO) is increasing by 0.46 percent.

Agnico Eagle Mines (AEM.TO) is surging by 7.53 percent, after it reported first quarter adjusted EPS of $0.15.

The Capped Health Care Index is climbing by 1.45 percent. Valeant Pharmaceuticals International (VRX.TO) is surging by 2.35 percent and Catamaran (CCT.TO) is up 1.13 percent. Concordia Healthcare (CXR.TO) is gaining 1.87 percent and Extendicare (EXE.TO) is adding 0.38 percent.

The Energy Index is decreasing by 0.20 percent. Crude oil prices were steady Friday morning, pausing after strong recent gains on the back of a weaker U.S. dollar.

Crescent Point Energy (CPG.TO) is lower by 0.54 percent and Canadian Natural Resources (CNQ.TO) is declining by 1.20 percent. Legacy Oil + Gas (LEG.TO) is down 1.38 percent and Vermillion Energy (VET.TO) is losing 1.86 percent.

Encana (ECA.TO) is decreasing by 0.82 percent, after it sold its Moneta Divide assets to Aethon Energy Management and RedBird Capital Partners.

Canadian Oil Sands (COS.TO) is gaining 1.22 percent. The company reported a first quarter loss of $0.38 per share, compared to the profit of $0.35 per share last year.

The heavyweight Financial Index is up 0.51 percent. Canadian Imperial Bank of Commerce (CM.TO) is rising by 0.45 percent and Royal Bank of Canada (RY.TO) gaining by 0.55 percent. National Bank of Canada (NA.TO) is advancing by 0.76 percent and Toronto-Dominion Bank (TD.TO) is higher by 0.81 percent. Bank of Nova Scotia (BNS.TO) increasing by 0.66 percent and Bank of Montreal (BMO.TO) is higher by 0.56 percent.

The Capped Information Technology Index is climbing by 0.60 percent. Descartes Systems Group (DSG.TO) is up 0.44 percent and Sierra Wireless (SW.TO) is rising by 1.32 percent. BlackBerry (BB.TO) is advancing by 0.65 percent and Constellation Software (CSU.TO) is higher by 0.40 percent.

The Capped Telecommunication Services Index is rising by 0.41 percent. TELUS (T.TO) is increasing by 0.24 percent and BCE is up 1.07 percent.

The Capped Industrials Index is advancing by 0.61 percent. Canadian Pacific Railway (CP.TO) is rising by 0.95 percent and Canadian National Railway (CNR.TO) is gaining 1.05 percent. Air Canada (AC.TO) is increasing by 2.78 percent.

Norbord (NBD.TO) is increasing by 1.15 percent. The company reported a first quarter loss of $0.11 per share, compared to the profit of $0.13 per share in the prior year.

Aecon Group (ARE.TO) is gaining 2.21 percent, after it was awarded a $109 million contract from North West Redwater Partnership.

On the economic front, The manufacturing sector in China continued to barely expand in April, the latest data from the National Bureau of Statistics showed on Friday with a manufacturing PMI score of 50.1. That beat expectations for 50.0, and it was unchanged from the March reading.

The manufacturing sector in Japan slipped into contraction for the first time in nine months, the latest survey from Markit Economics showed on Friday with a revised manufacturing PMI reading of 49.9. That's up from last month's preliminary April reading of 47.7, although it's down from 50.3 in March.

British manufacturing activity unexpectedly eased sharply to a seven-month low in April amid weaker demand, while central bank data showed that consumer credit grew strongly, suggesting that the fragile economic recovery was largely being led by consumption.

Poor figures for the factory sector coupled with weaker-than-expected first quarter GDP may prove a severe blow to the Conservatives just days ahead of the May 7 election.

The seasonally adjusted Markit/CIPS Purchasing Managers' Index fell to 51.9 in April from March's 54, which was revised from 54.4. Economists had expected the index to rise to 54.6.

U.K. mortgage approvals unexpectedly declined in March, after rising in the previous three months, data from the Bank of England showed Friday. The number of loan approvals for home purchase fell to 61,341 from a six-month high of 61,523 in February. Economists had expected a higher figure of 62,500.

In commodities, crude oil futures for June delivery are down $0.73 or 1.22 percent at $58.90 a barrel.

Natural gas for May is up $0.002 or 0.07 percent at $2.753 per million btu.

Gold futures for June are down $9.10 or 0.77 percent at $1,173.30 an ounce.

Silver for May is down $0.114 or 0.71 percent at $16.01 an ounce.