Canadian Stocks Rise, On Verge Of Record Highs -- Canadian Commentary

(RTTNews) - Canadian stocks are edging higher Monday morning, with investors reacting positively to some upbeat U.S. economic data.

Reports showing an unexpected rise in New York manufacturing activity, a rise in U.S. industrial production and improvement in home builder confidence are aiding sentiment to a significant extent.

However, a downward revision in U.S. economic growth forecast for the year to 2 percent by the International Monetary Fund appears to be limiting market's gains to an extent.

Shares from financial, energy and technology sections are among the prominent gainers.

The benchmark S&P/TSX Composite Index is up 62.26 points or 0.42 percent at 15,063.87, slightly off the day's high of 15,070.06, and not far off from an all-time intraday high of 15,154.77, touched on June 6, 2008.

On Friday, the index closed up 91.98 points or 0.62 percent at 15,001.61, after scaling a high of 15,017.19 intraday. The index gained a little over 1 percent last week.

Chinook Energy Inc. (CKE.TO) is rising nearly 4 percent following an announcement that its wholly-owned unit Storm Ventures International (BVI) Limited has entered into an agreement to sell Chinook's Tunisian assets for $127.7 million.

Precision Drilling Corp. (PD.TO) has announced that it will sell certain assets from its trucking operations to Aveda Transportation and Energy Services Inc. (AVE.V.TO). The asset sale is expected to close on July 1, 2014. While Aveda Transportation and Energy Services Inc. shares are up more than 7 percent, shares of Precision Drilling Corp. are little changed at present.

Sears Canada Inc. (SCC.TO) shares are up 0.8 percent following an announcement from the company that it has an agreement to develop its property at the North Hill Shopping Centre in Calgary.

Macro Enterprises Inc. (MCR.V.TO) shares are down more than 5 percent. The company has appointed Jeff Redmond as interim Chief Financial Officer or CFO and Corporate Secretary effective July 1, 2014.

Valeant Pharmaceuticals International, Inc. (VRX.TO) announced late Friday that Executive Vice President and Company Group Chairman Ryan Weldon will leave the firm following the divestiture of its skin care rights to Swiss foods giant Nestle SA (NSRGY.PK,NSTR.L). Valeant Pharmaceuticals shares are down more than 1.5 percent.

Meanwhile, Allergan Inc. (AGN) reiterated its belief that Valeant Pharmaceuticals International, Inc.'s (VRX.TO) business model is unsustainable, and the model relies on serial acquisitions and cost reductions, as opposed to top-line revenue growth and operational excellence. Several third parties have also publicly expressed similar views.

Acasti Pharma Inc. (APO.TO) is down nearly 5 percent after it announced that Xavier Harland has resigned as the company's Chief Financial Officer, effective immediately.

In the energy sector, Suncor Energy Inc. (SU.TO), Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO), Talisman Energy (TLM.TO), Husky Energy (HSE.TO) and ARC Resources (ARX.TO) are up 0.5 to 1.2 percent.

Gold stocks Canterra Gold Corporation (CG.TO), Barrick Gold Corporation (ABX.TO) and Terenga Gold Corporation (TGZ.TO) are notably higher.

Among big six banks, National Bank of Canada (NA.TO) is up marginally, while the rest are higher by 0.4 to 0.6 percent.

In the technology space, Open Text Corporation (OTC.TO), DH Corporation (DH.TO), Celestica Inc. (CLS.TO) and Descartes Systems Group Inc.(DSG.TO) are moving up 0.5 to 1.3 percent, while Avigilon Corporation (AVO.TO) is rising over 2.5 percent.

In commodities, crude oil futures for August are up marginally at $106.22, giving up early gains.

Natural gas for July is down $0.049 or 1.02 percent at $4.691 per million btu.

Gold prices are up, extending gains to a sixth successive session with reports about escalating violence in Iraq prompting investors to seek the safe haven of the precious metal. Gold futures for August delivery are up $1.60 or 0.13 percent at $1,275.70 an ounce, after advancing to 1,285.10 earlier in the day, its best since May 27.

Silver for July is up $0.008 or 0.04 percent at $19.663 an ounce. Meanwhile, copper is up marginally at $19.663 per pound amid hopes of increased demand from China following last Friday's data that showed Chinese industrial production to have picked up some pace, rising 8.8 percent in May.

In economic news from the U.S., a report from the Federal Reserve of New York showed that manufacturing activity in New York region to have risen unexpectedly in June with the Empire State general business conditions index inching up to 19.3, from 19.0 in May. Economists expected the index to slip to 15 in June.

The Federal Reserve released a separate report showing that industrial production increased by 0.6 percent in May following a revised 0.3 percent decrease in April. Economists had expected production to climb by about 0.5 percent.

Additionally, the National Association of Home Builders recently released a report showing that homebuilder confidence has improved by more than expected in the month of June. Economists expected the housing market index to climb to 47 in June from 45 in May.

A 2-day Federal Reserve meeting kick starts on Tuesday. The central bank is also scheduled to release its updated forecasts apart from the post-meeting policy statement.

Investors will be looking ahead to the Commerce Department's housing starts report for May and the jobless claims report this week.

Additionally, the Labor Department's consumer prices report for May, the Commerce Department's quarterly current account report, the Conference Board's leading economic indicators index for May and announcements concerning the Treasury auctions of 2-year, 5-year and 7-year notes are also due this week.