Energy Stocks Drag TSX From Record Highs -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Monday mid morning, as falling crude oil prices hit the energy sector ahead of this week's interest rate announcement from the Federal Reserve.

The mood is cautious with investors looking ahead to a slew of U.S. economic data this week.

The Fed is widely expected to reduce quantitative easing by another $10 billion on Wednesday, dropping the size of the asset purchasing program down to $25 billion per month.

Investors are also watching the developments in Ukraine and the Middle East.

The benchmark S&P/TSX Composite Index is down 32.59 points or 0.21 percent at 15,422.45, after initially advancing to 15,465.29.

The index recorded a new closing high on Friday, settling at 15,455.04, with a gain of 60.59 points or 0.39 percent, after scaling a new all-time intraday high of 15,503.40. For the week, the index gained nearly 1.25 percent.

Energy stocks are down, tracking weak crude oil prices. The Energy Index is down nearly 1 percent, with Suncor Energy Inc. (SU.TO), Canadian Natural Resources Limited (CNQ.TO), Cenovus Energy Inc. (CVE.TO), Crescent Point Energy Corp. (CPG.TO), Encana Corporation (ECA.TO), Canadian Oil Sands Limited (COS.TO), Talisman Energy Inc. (TLM.TO) and ARC Resources Ltd. (ARX.TO) declining 0.6 to 1.2 percent.

Athabasca Oil Corporation (ATH.TO) is plunging nearly 6 percent. Athabasca announced that it is in the process of closing its option to sell a 40 percent stake in the Dover oil sands project to PetroChina. The deal is worth around $1.23 billion.

Meanwhile, Epsilon Energy (EPS.TO) is bucking the trend, gaining nearly 6.5 percent.

Among miners, First Quantum Minerals Ltd. (FM.TO), Turquoise Hill Resources Ltd/ (TRQ.TO) and Major Drilling Group International Inc. (MDI.TO) are moving up 0.6 to 1.2 percent. Meanwhile, Sherritt International Corporation (S.TO) is losing about 0.8 percent.

Gold stocks B2Gold Corp. (BTO.TO), Barrick Gold Corporation (ABX.TO), Yamana Gold (YRI.TO), Detour Gold Corporation (DGC.TO) and Eldorado Gold Corporation (ELD.TO) are declining 0.5 to 1.2 percent.

Among big six banks, Royal Bank of Canada (RY.TO) is down marginally, while the rest are up in positive territory with modest gains.

In the healthcare space, Catamaran Corporation (CCT.TO) is declining 1.3 percent and Valeant Pharmaceuticals Inc. (VRX.TO) is losing about 0.3 percent, while Extendicare Inc. (EXE.TO) is modestly higher.

Industrial stock Ballard Power Systems Inc. (BLD.TO) is advancing nearly 3.5 percent.

Northampton Group Inc. (NHG.V.TO) reported Saturday that posted net loss of $280.80 thousand or $0.011 per share, for the fourth quarter, compared $40.21 thousand or $0.002 per share in the previous year. The stock is not traded yet this session.

Rogers Communications Inc. (RCI.TO) and GLENTEL (GLN.TO) have extended their multi-year agreement to offer Rogers products and services in GLENTEL's 485 retail locations across Canada. Shares of Rogers Communications Inc. are down marginally, while Glentel is gaining over 1 percent.

Atco Limited (ACO.X.TO) has reported second quarter adjusted earnings of $57 million in 2014 compared to $89 million in 2013. The stock is up marginally.

Canadian Utilities Limited (CU.TO) shares are little changed after reporting second quarter adjusted earnings of $85 million in 2014 compared to $131 million in 2013.

In commodities, crude oil futures are notably lower amid reports global oil supply is likely to outstrip demand. Crude oil futures for September are down $0.99 or 0.97 percent at $101.10 a barrel.

Natural gas for September is up $ 0.032 or 0.84 percent at $ 3.819 per million btu.

Gold futures for December are up $0.90 or 0.07 percent at $1,306.20 an ounce.

Silver for September is up $0.027 or 0.13 percent at $20.663 an ounce. Meanwhile, copper is up $0.004 or 0.13 percent at $3.245 per pound.

In economic news from the U.S., pending home sales unexpectedly dropped in June. Data released by the National Association of Realtors said the index declined by 1.1 percent to 102.7 in the month, after surging up to 103.8 in May. The decrease came as a surprise to economists, who had expected pending home sales to increase by another 0.5 percent.