TSX Claws Slightly Higher, Led By Miners -- Canadian Commentary

(RTTNews) - Canadian stocks are modestly higher Friday mid morning, led by gains in mining and energy stocks.

The market started off on a slightly weak note this morning, with strong U.S. economic data raising prospects for a Fed rate hike sooner than forecast earlier.

Investors are digesting a slew of economic data out of the U.S., including a report from the Commerce Department showing a fairly impressive rise in retail sales in August.

Data showing a bigger than expected improvement in U.S. consumer sentiment is also contributing to the market's rise from lower levels.

Investors continue to watch the developments in Ukraine and the Middle East.

With the European Union's latest rounds of sanctions on Russia taking effect and the U.S. warning further sanctions, worries about possible disruptions in oil supplies have resurfaced again.

The benchmark S&P/TSX Composite Index is up 31.93 points or 0.21 percent at 15,566.25, coming off an early low of 15,498.12.

On Thursday, the index closed up 62.43 points or 0.40 percent at 15,534.32. The index scaled a intraday high of 15,546.54 and a low of 15,432.28.

The Diversified Mining & Metals Index is up 0.87 percent. Turquoise Hill Resources Ltd. (TRQ.TO) is up 4 percent. Lundin Mining Corporation (LUN.TO) is rising nearly 1 percent.

Capstone Mining Corp. (CS.TO) said due to general market conditions it is discontinuing its previously announced offering of $300 million Senior Notes due in 2022. After opening notably lower, Capstone Mining shares have recovered and are currently near their last closing level.

In the energy sector, Canacol Energy Ltd. (CNE.TO) is rising over 4 percent and Whitecap Resources Inc. (WCP.TO) is advancing 1.7 percent. Encana Corporation (ECA.TO) and Husky Energy Inc. (HSE.TO) are up 0.8 percent and 1 percent, respectively. Meanwhile, Canadian Oil Sands Limited (COS.TO) is down more than 1 percent.

Among gold stocks, Franco-Nevada Corporation (FNV.TO), Detour Gold Corporation (DGC.TO), Barrick Gold Corporation (ABX.TO), Kinross Gold Corporation (K.TO) and B2Gold Corp. (BTO.TO) are down 1.2 to 2 percent.

Among big six banks, Toronto-Dominion Bank (TD.TO) and Bank of Montreal (BMO.TO) are modestly higher, while the rest are little changed from previous closing prices. Insurance stock Manulife Financial Corporation (MFC.TO) is advancing 1.3 percent.

The Consumer Staples Index is up 0.6 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO), Metro Inc. (MRU.TO), Empire Company Limited (EMP.A.TO) and Maple Leaf Foods Inc. (MFI.TO) moving up 0.5 to 1 percent.

The Healthcare Index is up 0.5 percent. Valeant Pharmaceuticals International, Inc. (VRX.TO) and Extendicare Inc. (EXE.TO) are up 1.1 percent and 0.6 percent, respectively. Catamaran Corporation (CCT.TO) is up marginally.

Telecom stocks Rogers Communications Inc. (RCI.B.TO) and TELUS Corporation (T.TO) are moving up 0.8 percent and 0.5 percent, respectively.

Hudson's Bay (HBC.TO) reported second-quarter net loss of C$36 million or C$0.23 per share, compared to net loss of C$81 million or C$0.68 per share in the prior year. The stock is lower by about 0.7 percent.

BRP Inc. (DOO.TO) is declining over 3 percent, despite narrowing its quarterly loss. The company reported net loss of C$3.6 million or C$0.03 per share for the second quarter, from C$7.9 million or C$0.07 per share last year.

In commodities, crude oil futures for October are down $0.29 or 0.31 percent at $92.54 a barrel, after rising to $93.67 earlier in the day.

Natural gas for October is up marginally at $3.825 per million btu.

Gold futures for December are down $9.10 or 0.73 percent at $1,229.90 an ounce.

Silver for December is down $0.040 or 0.21 percent at $18.559 an ounce. Meanwhile, copper is up $0.006 or 0.19 percent at $3.098.

According to a report from the U.S. Commerce Department, retail sales were up 0.6 percent in August, following an upwardly revised 0.3 percent increase in July. That was in line with expectations. Excluding autos too, retail sales rose as expected, increasing 0.3 percent in the month.

Data from the Labor Department showed import prices to have declined by a less than expected 0.9 percent in August. The consensus estimates called for a decline of 1 percent in import prices. Export prices dropped 0.5 percent, against expectations for a 0.1 percent decline.

U.S. consumer sentiment has come in with a bigger than expected score of 84.6 for September, the best level since July 2013, according to a report released by Thomson Reuters and the University of Michigan. The final August reading came in at 82.5.

Meanwhile, business inventories in the U.S increased in line with economist estimates in the month of July, rising 0.4 percent, according to a report released by the Commerce Department.

In economic news from the eurozone, employment rose 0.2 percent in the second quarter, after increasing 0.1 percent in the previous quarter. Year-on-year, employment grew 0.4 percent, faster than the 0.1 percent rise in the first quarter.

Meanwhile, the Russian central bank left its key interest rate unchanged at 8 percent, with inflation staying high due amid severe economic sanctions.