TSX Claws Slightly Higher Despite Ho-Hum Global Data -- Canadian Commentary

(RTTNews) - Canadian stocks are higher Thursday morning, with investors indulging in some selective buying despite weak economic data from the U.S. and eurozone.

Worries about Ukraine eased a bit after Russian President Vladimir Putin stated that Russia will do everything possible to end the conflict between the Ukrainian government and pro-Russian separatists.

Investors also appear to be betting on hopes that today's weak U.S. jobless claims data and stagnant growth in the eurozone might prompt central banks to continue with their easy monetary policies for an extended period.

The benchmark S&P/TSX Composite Index is up 38.15 points or 0.25 percent at 15,300.88, after advancing to 15,311.47.

The Diversified Metals Index is down 0.8 percent, with First Quantum Minerals Ltd. (FM.TO), HudBay Minerals Inc. (HBM.TO), Capstone Mining Corp. (CS.TO) and Nevsun Resources Ltd. (NSU.TO) losing 1 to 1.6 percent.

The Financial Index is moving up 0.5 percent, with the big six banks advancing by 0.4 to 0.8 percent. Sun Life Financial Inc. (SLF.TO) and Manulife Financial Corporation (MFC.TO) are rising 0.8 percent and 0.7 percent, respectively.

The Consumer Staples Index is up 0.6 percent. Alimentation Couche-Tard Inc. (ATD.B.TO) and Loblaw Companies Limited (L.TO) are moving up 1.3 percent and 1.5 percent, respectively. Empire Company (EMP.A.TO) and Metro Inc. (MRU.TO) are gaining over 0.5 percent.

Among healthcare stocks, Extendicare Inc. (EXE.TO) is declining 0.5 percent, while Catamaran Corporation (CCT.TO) and Valeant Pharmaceuticals International Inc. (VRX.TO) are moving up 1.3 percent and 2 percent, respectively.

The Energy Index is up marginally, with the top ten constituents little changed from last closing levels.

Among gold stocks, Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO) and Yamana Gold Inc. (YRI.TO) are modestly higher, while Franco-Nevada Corporation (FNV.TO) is down nearly 4 percent.

Canadian Energy Services & Technology Corp. (CEU.TO) shares are down more than 2 percent after the company reported second-quarter net income of $8.5 million or $0.04 per share, compared to $1.9 million or $0.01 per share in the prior year quarter.

Silver Wheaton Corp. (SLW.TO) is down 2 percent on lower earnings. The company reported second-quarter net earnings of $63.5 million or $0.18 per share, compared to $71.1 million or $0.20 per share, prior year.

Pacific Rubiales Energy Corp. (PRE.TO)'s net earnings rose to $228.5 million or $0.73 per share in the second quarter, up from $74.3 million or $0.23 per share, in the prior corresponding quarter. The stock is advancing 1.2 percent.

IAMGOLD (IMG.TO) is gaining 4.5 percent after reporting quarterly net loss to equity holders of $16 million or $0.04 per share, versus a loss of $28.4 million or $0.08 per share last year.

Karnalyte Resources Inc. (KRN.TO) said its second-quarter net finance loss narrowed to C$162 thousand from C$519 thousand in the prior year. Loss per share was C$0.05 compared to a loss of C$0.06 in the previous year. The stock is little changed from previous closing price.

Chorus Aviation Inc. (CHR.B) is modestly higher after reporting adjusted net income of $22.2 million or 18 cents per share for the second quarter, up $21.4 million or 17 cents per share last year.

In commodities, crude oil futures for September are down $1.16 or 1.19 percent at US$96.45 a barrel, on likely fall in global demand for oil.

An unexpected rise in U.S. crude oil stockpiles and the Energy Information Administration's forecast that global oil consumption will be less in 2014 and 2015 are dragging down oil prices.

Natural gas for September is up $0.096 or 2.49 percent at $3.927 per million btu.

Gold futures for December are down $0.90 or 0.07 percent at $1,313.60 an ounce.

Silver for September is up $0.043 or 0.22 percent at $19.888 an ounce. Meanwhile, copper is down $0.025 or 0.79 percent at $3.087 per pound.

On the economic front, new home prices in Canada were up in June, with the housing price index rising 0.2 percent, said Statistics Canada. On yearly basis, new house prices rose 1.5 percent.

In economic news from the U.S., initial jobless claims rose more than expected to 311,000, up 21,000 from the previous week's revised level of 290,000. Economists expeced jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.

Another report from the Labor Department showed import prices to have edged down by 0.2 percent in July, after inching up by 0.1 percent in June. Forecasts were for a drop of 0.3 percent in import prices. Export prices were unexpectedly unchanged in July following a 0.4 percent drop in the previous month.

Meanwhile, economic recovery in the eurozone unexpectedly came to a halt in the second quarter, with Germany and Italy shrinking from the prior quarter. GDP was flat in the June quarter, after seeing an increase of 0.2 percent in the preceding quarter.