Canadian Stocks Are Up On Yellen Comments -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Friday, as it attempts to bounce back from three days of losses. Strong GDP data from the United States and clarity on Fed monetary policy from yesterday's speech by Fed Chair Janet Yellen are providing a boost to investor sentiment.

The majority of the Canadian sectors are trading in the green this morning. Industrials, energy and financial stocks are among the top gainers, while gold and healthcare stocks are lagging behind.

Markets in Europe are trading solidly to the upside as the end of the trading week draws near. Markets in the United States are also posting modest gains. U.S. equity markets were up strongly in early trade, after Federal Reserve Chair Janet Yellen offered the clarity most investors had been seeking on the direction of U.S. monetary policy.

In a speech at the University of Massachusetts on Thursday, Yellen indicated that an interest rate rise in 2015 is still on the cards, though the decision would hinge largely on upcoming economic data. She said that low inflation and uncertainty in the global economy are transitory factors and U.S. inflation will return to 2 percent over the next few years as headwinds from a strong dollar and falling oil and import prices diminish.

However, those early gains took a hit after reported that House Speaker John Boehner will step down from his position and exit Congress, effective October 30. Investors are now debating what this development will mean as the possibility of a government shutdown approaches.

U.S. economic growth was revised higher for the April-to-June period, raising expectations that the Federal Reserve will soon raise interest rates.

Updated government data showed that the U.S. Gross Domestic Product expanded at a revised rate of 3.9 percent in the second quarter. This was revised up from the 3.7 percent growth that was reported last month.

U.S. consumer sentiment fell in September compared to the previous month, according to a survey released Friday

The University of Michigan's final September reading on the overall index on consumer sentiment came in at 87.2, down from 91.9 in August.

The benchmark S&P/TSX Composite Index is up 92.29 points or 0.69 percent at 13,430.96.

On Thursday, the index closed down 45.02 points or 0.34 percent, at 13,338.67. The index scaled an intraday high of 13,384.51 and a low of 13,237.43.

The Capped Industrials Index is up 1.59 percent. CAE (CAE.TO) is gaining 1.53 percent and Bombardier (BBD-A.TO) is increasing by 9.40. Canadian Pacific Railway (CP.TO) is rising by 1.70 percent and Canadian National Railway (CNR.TO) is higher by 2.09 percent.

Air Canada (AC.TO) is advancing by 0.52 percent. The company announced that it has reached a new multi-year distribution agreement with Amadeus.

The heavyweight Financial Index is rising by 1.05 percent. Royal Bank of Canada (RY.TO) is advancing by 0.90 percent and Bank of Nova Scotia (BNS.TO) is higher by 1.28 percent. Toronto-Dominion Bank (TD.TO) is increasing by 1.16 percent and National Bank of Canada (NA.TO) is up 1.03 percent. Bank of Montreal (BMO.TO) is climbing by 0.82 percent and Canadian Imperial Bank of Commerce (CM.TO) is gaining 0.72 percent.

The Energy Index is increasing by 0.93 percent. Crude oil prices edged higher Friday morning after Fed Chairman Janet Yellen provided some clarity on possible interest rate hikes last night in Massachusetts.

Canadian Natural Resources (CNQ.TO) is advancing by 0.04 percent and Enbridge (ENB.TO) is gaining 1.06 percent. Encana (ECA.TO) is rising by 0.67 percent and Crescent Point Energy (CPG.TO) is adding 0.96 percent. Suncor Energy (SU.TO) is climbing by 1.39 percent and Cenovus Energy (CVE.TO) is up 1.00 percent. Canadian Oil Sands (COS.TO) is higher by 4.71 percent and Pacific Exploration & Production (PRE.TO) is increasing by 2.25 percent.

The Capped Telecommunication Services Index is higher by 0.40 percent. BCE (BCE.TO) is gaining 0.54 percent and TELUS (T.TO) is increasing by 0.49 percent. Manitoba Telecom Services (MBT.TO) is also up 0.11 percent.

The Capped Information Technology Index is gaining 0.24 percent. Constellation Software (CSU.TO) is up 1.17 percent and Sierra Wireless (SW.TO) is climbing by 1.36 percent. Descartes Systems Group (DSG.TO) is higher by 0.41 percent and Avigilon (AVO.TO) is adding 0.44 percent.

BlackBerry (BB.TO) is falling by 2.35 percent. The company reported a second quarter adjusted loss of $0.13 per share. Analysts expected a loss of $0.09 per share.

The Gold Index is decreasing by 1.54 percent. Gold futures trimmed weekly gains Friday morning amid renewed expectations that the Federal Reserve will raise interest rates in the next few months.

Kinross Gold (K.TO) is declining by 1.32 percent and Goldcorp (G.TO) is falling by 0.67 percent. B2Gold (BTO.TO) is lower by 2.53 percent and Eldorado Gold (ELD.TO) is losing 3.53 percent. IAMGOLD (IMG.TO) is decreasing by 1.77 percent and Royal Gold (RGL.TO) is weakening by 2.72 percent. Barrick Gold (ABX.TO) is also down 1.61 percent.

The Capped Materials Index is also down 0.75 percent. Franco-Nevada (FNV.TO) is falling by 0.40 percent and Agnico Eagle Mines (AEM.TO) is decreasing by 0.67 percent.

Silver Wheaton (SLW.TO) is declining by 1.68 percent. The company was told by Canada's tax authorities that the mining company owes $353 million in back taxes.

The Diversified Metal and Mining Index is weakening by 1.05 percent. HudBay Minerals (HBM.TO) is losing 1.44 percent and First Quantum Minerals (FM.TO) is down 0.99 percent. Capstone Mining (CS.TO) is declining by 2.06 percent and Sherritt International (S.TO) is lower by 1.27 percent. Lundin Mining (LUN.TO) is surrendering 2.23 percent and Teck Resources (TCK-A.TO) is falling by 0.46 percent.

The Capped Health Care Index is declining by 1.07 percent. Valeant Pharmaceuticals International (VRX.TO) is falling by 0.94 percent and Concordia Healthcare (CXR.TO) is losing 4.77 percent.

On the economic front, French consumer confidence strengthened in September to the highest level in almost eight years, figures from the statistical office INSEE showed Friday. The consumer confidence index rose to 97 in September from 94 in the previous month, which was revised up from 93. Economists had forecast the same score of 94.0 for the month.

In commodities, crude oil futures for October delivery are up $1.30 or 2.89 percent at $46.21 a barrel.

Natural gas for October is down 0.048 or 1.85 percent at $2.543 per million btu.

Gold futures for December are down $6.80 or 0.59 percent at $1,147.00 an ounce.

Silver for December is up $0.015 or 0.10 percent at $15.145 an ounce.