TSX Ends Higher After Yellen Clarifies -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day gain to end higher on Friday, on some strong GDP data from the United States and clarity on Fed monetary policy after yesterday's speech by Fed Chair Janet Yellen provided a boost to investor sentiment.

The majority of the Canadian sectors ended in the green led by industrials, energy and financial stocks among gainers, while gold and healthcare stocks are lagged.

Markets in Europe ended solidly to the upside at the end of the trading week. Markets in the U.S. ended mixed, after being up strongly in early trade, after Federal Reserve Chair Janet Yellen offered the clarity most investors had been seeking on the direction of U.S. monetary policy.

In a speech at the University of Massachusetts on Thursday, Yellen indicated that an interest rate rise in 2015 is still on the cards, though the decision would hinge largely on upcoming economic data. She said that low inflation and uncertainty in the global economy are transitory factors and U.S. inflation will return to 2 percent over the next few years as headwinds from a strong dollar and falling oil and import prices diminish.

However, those early gains took a hit after it was reported that House Speaker John Boehner will step down from his position and exit Congress, effective October 30. Investors are now debating what this development will mean as the possibility of a government shutdown approaches.

U.S. economic growth was revised higher for the April-to-June period, raising expectations that the Federal Reserve will soon raise interest rates. Meanwhile, U.S. consumer sentiment fell in September compared to the previous month, a survey released Friday showed.

The benchmark S&P/TSX Composite Index closed Friday at 13,378.57, up 39.90 points or 0.30 percent. The index scaled an intraday high of 13,468.75 and a low of 13,350.66.

On Thursday, the index closed down 45.02 points or 0.34 percent, at 13,338.67. The index scaled an intraday high of 13,384.51 and a low of 13,237.43.

Gold futures ended lower amid renewed expectations that the Federal Reserve will raise interest rates in the next few months.

The Gold Index dropped 1.32 percent, as gold for December delivery fell $8.20 or 0.7 percent, to settle at $1,145.60 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 3.07 percent, Goldcorp Inc. (G.TO) moved up 1.06 percent, and Eldorado Gold (ELD.TO) shed 1.88 percent.

Kinross Gold Corp. (K.TO) added 1.32 percent, while Barrick Gold (ABX.TO) gathered 0.34 percent.

The Capped Materials Index fell 0.87 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) dropped 1.86 percent.

Agnico Eagle Mines Limited (AEM.TO) added 0.90 percent, while Agrium Inc. (AGU.TO) slipped 1.20 percent and Franco-Nevada Corp. (FNV.TO) fell 0.59 percent.

The Diversified Metals & Mining Index dropped 1.35 percent, as Lundin Mining Corporation (LUN.TO) fell 1.73 percent, while HudBay Minerals Inc. (HBM.TO) moved up 1.26 percent. First Quantum Minerals (FM.TO) dipped 1.26 percent and Teck Resources Limited (TCK-B.TO) shed 4.26 percent. The heavyweight Financial Index gained 0.95 percent, as Royal Bank of Canada (RY.TO) added 0.78 percent and National Bank of Canada (NA.TO) gathered 1.08 percent.

Toronto-Dominion Bank (TD.TO) gained 1.16 percent, Bank of Nova Scotia (BNS.TO) moved up 0.89 percent, Canadian Imperial Bank Of Commerce shed 0.52 percent, and Bank of Montreal (BMO.TO) adding 0.70 percent.

Crude oil prices ended higher for a third straight session on Friday, after Fed Chairman Janet Yellen provided some clarity on possible interest rate hikes last night in Massachusetts.

The Energy Index gained 0.41 percent, with U.S. crude oil futures for November delivery jumping $0.79 or 1.8 percent, to settle at $45.70 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) dropped 0.51 percent, Canadian Natural Resources Limited (CNQ.TO) added 1.00 percent, and Canadian Oil Sands (COS.TO) gained 2.01 percent.

Cenovus Energy (CVE.TO) moved up 1.15 percent, while Baytex Energy Corp. plummeted 7.66 percent. Encana Corp. (ECA.TO) shed 1.12 percent, while Suncor Energy (SU.TO) added 1.17 percent.

The Capped Health Care Index slumped 4.76 percent, as Valeant Pharmaceuticals International (VRX.TO) dived 4.91 percent, Extendicare Inc. (EXE.TO) fell 0.37 percent, and Concordia Healthcare Corp. (CXR.TO) slumped 13.79 percent.

The Capped Information Technology Index shed 0.28 percent, as BlackBerry (BB.TO) plunged 7.69 percent, after the smartphone maker reported a second quarter adjusted loss of $0.13 per share. Analysts expected a loss of $0.09 per share for the quarter.

Descartes Systems Group (DSG.TO) dipped 0.04 percent, and Constellation Software (CSU.TO) added 0.93 percent.

The Capped Telecommunication Index gathered 0.24 percent, as TELUS Corp. (T.TO) added 0.57 percent, Rogers Communication (RCI-B.TO) dropped 0.28 percent and BCE Inc. (BCE.TO) moved up 0.69 percent.

The Capped Industrials Index gathered 1.66 percent, as Bombardier (BBD-B.TO) surged 8.90 percent, having plunged 8.62 percent yesterday.

Finning International Inc. (FTT.TO) added 2.21 percent, while Canadian Pacific Railway (CP.TO) gathered 1.62 percent. Canadian National Railway (CNR.TO) added 1.67 percent, while Magna International Inc. (MG.TO) gained 0.46 percent.

Air Canada (AC.TO) added 0.43 percent. The company announced that it has reached a new multi-year distribution agreement with Amadeus.

Silver Wheaton (SLW.TO) dropped 0.54 percent. The company was told by Canada's tax authorities that the mining company owes $353 million in back taxes.

On the economic front, updated government data showed that the U.S. Gross Domestic Product expanded at a revised rate of 3.9 percent in the second quarter. This was revised up from the 3.7 percent growth that was reported last month.

U.S. consumer sentiment fell in September compared to the previous month, according to a survey released Friday. The University of Michigan's final September reading on the overall index on consumer sentiment came in at 87.2, down from 91.9 in August.

French consumer confidence strengthened in September to the highest level in almost eight years, figures from the statistical office INSEE showed Friday. The consumer confidence index rose to 97 in September from 94 in the previous month, which was revised up from 93. Economists had forecast the same score of 94.0 for the month.

The Japanese government downgraded its economic view for the first time since last October as it sees risks from slowdown in China and normalization of interest rate in the U.S. In its monthly report, the Cabinet Office said Friday the economy is on a moderate recovery, while slowness can be seen in some areas.