TSX Ends A Shade Lower On Commodities -- Canadian Commentary

(RTTNews) - Canadian stocks slipped to end a tad lower on Friday, driven by declining energy and gold stocks as commodity prices continued to drop, as markets await the U.S. Federal Reserve meet next week. Nonetheless, some positive economic news from the U.S. helped the main index recoup, although the new sanctions imposed on Russia for its involvement in eastern Ukraine dampened sentiments.

Notwithstanding the ceasefire in eastern Ukraine, the U.S. Treasury Department on Friday announced a new round of sanctions against Russia, targeting Russia's largest bank Sberbank, which accounts for approximately one-quarter of Russian banking assets and one-third of its banking capital.

The U.S. Treasury Department also deepened existing sanctions on other Russian financial institutions, expanded sanctions on Russia's energy sector, and increased the number of sanctioned Russian entities in the energy and defense sectors.

Investors also weighed some encouraging economic data out of the U.S., including a report from the Commerce Department showing a fairly impressive rise in retail sales in August and a bigger than expected improvement in U.S. consumer sentiment.

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

The S&P/TSX Composite Index closed Friday at 15,531.58, down 2.74 points or 0.02 percent. The index scaled a intraday high of 15,580.46 and a 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.

Crude oil ended lower on renewed concerns of a supply glut even as the U.S. imposed new sanctions on Russia for its involvement in stoking the conflict in eastern Ukraine.

The Energy Index dropped 0.44 percent, with U.S. crude oil futures for October delivery shedding $0.56 or 0.6 percent to close at $92.27 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 0.42 percent, Enbridge Inc. (ENB.TO) shed 1.36 percent, Suncor Energy Inc. (SU.TO) dropped 0.85 percent, Encana Corp. (ECA.TO) gained 0.89 percent, and Canadian Natural Resources Limited (CNQ.TO) slipped 0.04 percent.

The Financial Index added 0.41 percent, with Toronto-Dominion Bank (TD.TO) up 0.31 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.10 percent, Royal Bank of Canada (RY.TO) added 0.37 percent, Bank of Nova Scotia (BNS.TO) added 0.29 percent, and Bank of Montreal (BMO.TO) edged up 0.15 percent.

Gold futures ended lower for a fifth straight session on continued speculation the Federal Reserve may hike interest rates earlier than expected after some positive economic data out of the U.S.

Global Gold Index dropped 0.90 percent, with gold for December delivery shedding $7.50 or 0.6 percent to close at $1,231.50 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) shed 0.78 percent, B2Gold Corp. (BTO.TO) dropped 0.85 percent, and Yamana Gold Inc. (YRI.TO) shed 0.74 percent. Eldorado Gold Corp. (ELD.TO) gained 1.44 percent, while Barrick Gold Corp. (ABX.TO) dropped 1.61 percent.

The Capped Materials Index added 1.26 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 2.31 percent.

The Diversified Metals & Mining Index gained 0.94 percent, with First Quantum Minerals Ltd. (FM.TO) adding 1.26 percent, Lundin Mining Corp. (LUN.TO) moved up 0.51 percent, and Teck Resources Limited (TCK.B.TO) gained 0.64 percent.

The Capped Industrial Index gained 0.43 percent, with Bombardier Inc. (BBD.B.TO) up 0.27 percent and Air Canada (AC.B.TO) down 2.75 percent.

The Information Technology Index is up 1.63 percent, with BlackBerry Limited (BB.TO) up 0.42 percent. Celestica Inc. (CLS.TO) added 0.17 percent, Constellation Software Inc. (CSU.TO) dropped 0.10 percent, and Avigilon Corp. (AVO.TO) gained 1.40 percent.

The Consumer Staples Index is up 0.51 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) up 0.45 percent, Metro Inc. (MRU.TO) up 0.82 percent, Empire Company Limited (EMP.A.TO) up 1.01 percent, and Maple Leaf Foods Inc. (MFI.TO) up 0.64 percent.

The Healthcare Index is up 0.48 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) gaining 1.55 percent, Extendicare Inc. (EXE.TO) down 0.36 percent, and Catamaran Corp. (CCT.TO) is up 0.38 percent.

The Telecom Index dropped 0.34 percent with Rogers Communications Inc. (RCI.B.TO) up 0.20 percent, while TELUS Corp. (T.TO) shed 0.78 percent.

Hudson's Bay (HBC.TO) gained 1.13 percent after reporting a 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.

BRP Inc. (DOO.TO) dropped 3.64 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 economic news from the U.S., a report from the Commerce Department showed retail sales to have risen 0.6 percent in August, following an upwardly revised 0.3 percent increase in July. This was in line with expectations.

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

U.S. consumer sentiment reported a bigger than expected score of 84.6 for September, the best since July 2013, a report from Thomson Reuters and the University of Michigan showed. 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 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, Russia's central bank left its key interest rate unchanged at 8 percent, with inflation staying high due to the severe economic sanctions.