TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher on Friday, tracking rising U.S. equity markets, led by financial, healthcare and information tech stocks. Nevertheless, the gains were capped by sharp declines in mining and energy stocks, with commodity prices continuing to struggle.

Markets have been rather tentative after China's shock currency devaluation raised concerns for Canadian exporters.

Some soft economic data also limited the gains. Canadian factory sales rose 1.2 percent to C$50.8 billion in June, Statistics Canada said Friday. Economists anticipated a 2.7 percent increase for the month.

Canada's home sales in July dropped 0.4 percent from a month ago, for a second straight month. Average price was down 0.3 percent, the Canadian Real Estate Board said Friday.

European stocks ended in negative territory, after some disappointing eurozone gross domestic product data, rising further concerns about the health of the global economy. Eurozone gross domestic product growth slowed to 0.3 percent from 0.4 percent in the first quarter, short of economists' forecasts of a 0.4 percent gain.

Meanwhile, lawmakers in Greece approved the country's third bailout program, even as markets continued to reel from China's shock currency devaluations earlier in the week.

U.S. stocks closed in positive territory, although the major averages pulled back off their best levels. The strength on Wall Street partly reflected a positive reaction to some key U.S. economic data, including a report from the Federal Reserve showing a bigger than expected increase in industrial production.

In some upbeat economic news, producer prices in the U.S. rose more than expected in July, rising for a third straight month, while industrial production increased more than expected in July, rising at its strongest pace in nearly eight months.

The string of positive data augurs a healthy beginning for the U.S. economy in the third quarter, with some upbeat retail sales data for July topping the week.

The benchmark S&P/TSX Composite Index closed Friday at 14,277.88, up 39.48 points or 0.28 percent. The index scaled an intraday high of 14,304.38 and a low of 14,224.53.

On Thursday, the index dropped 101.13 points or 0.71 percent, to close at 14,238.40. The index scaled an intraday high of 14,340.57 and a low of 14,223.62.

Gold futures ended lower after the dollar strengthened after some mixed economic data from the U.S. with industrial production rising more than expected in July.

The Gold Index shed 0.96 percent, with gold for August delivery shedding $2.90 or 0.3 percent, to settle at $1,112.70 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 1.15 percent, Barrick Gold Corp. (ABX.TO) fell 0.59 percent, and Eldorado Gold (ELD.TO) climbed 3.01 percent. Goldcorp Inc. (G.TO) dropped 1.11 percent.

The Capped Materials Index fell 0.40 percent, as Potash Corporation of Saskatchewan Inc. (POT.TO) inched up 0.18 percent, Agnico Eagle Mines Limited (AEM.TO) fell 2.09 percent and Agrium Inc. (AGU.TO) added 2.09 percent.

Crude oil futures ended higher after having plummeted to a 6-year low yesterday, on some upbeat economic data from the U.S. notwithstanding continued concerns of a supply glut and an improvement in oil rig count for a fourth straight week.

The Energy Index shed 0.63 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, adding $0.27 or 0.6 percent, to settle at $42.50 a barrel on the New York Mercantile Exchange Friday.

Suncor Energy Inc. (SU.TO) added 1.11 percent, while Encana Corp. (ECA.TO) moved up 1.24 percent

Among other energy stocks, Canadian Natural Resources Limited (CNQ.TO) dipped 1.49 percent, Crescent Point Energy Corp. (CPG.TO) plunged 5.35 percent, Canadian Oil Sands (COS.TO) fell 0.30 percent, and Baytex Energy Corp. (BTE.TO) declined 4.46 percent.

The Diversified Metals & Mining Index declined 1.76 percent, as Teck Resources Limited (TCK-B.TO) added 1.06 percent, Lundin Mining Corp. (LUN.TO) gained 0.64 percent, and First Quantum Minerals Ltd. (FM.TO) dipped 0.15 percent.

The heavyweight Financial Index gained 0.61 percent, as National Bank of Canada (NA.TO) added 0.78 percent, Bank of Montreal (BMO.TO) advanced 1.05 percent, and Royal Bank of Canada (RY.TO) moved up 0.77 percent.

Canadian Imperial Bank of Commerce (CM.TO) added 0.20 percent, Bank of Nova Scotia (BNS.TO) gained 0.64 percent, and Toronto-Dominion Bank (TD.TO) fell 0.33 percent.

The Capped Health Care Index added 1.21 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 0.44 percent, Concordia Healthcare Corp. (CXR.TO) gathered 2.68 percent, and Extendicare Inc. (EXE.TO) gathered 1.08 percent.

The Capped Information Technology Index gathered 1.08 percent, as BlackBerry Limited (BB.TO) added 0.91 percent, Descartes Systems Group (DSG.TO) added 0.76 percent, and Constellation Software Inc. (CSU.TO) gathered 0.55 percent.

The Capped Telecommunication Index gained 0.25 percent, as Rogers Communication (RCI-B.TO) gained 1.15 percent, BCE Inc. (BCE.TO) moved up 0.49 percent and Manitoba Telecom Services Inc. (MBT.TO) shed 0.65 percent.

The Capped Industrials Index added 0.20 percent, even as Bombardier (BBD.B.TO) plunged 7.53 percent, Finning International Inc. (FTT.TO) added 0.85 percent, and Air Canada (AC.TO) dipped 2.58 percent.

The Capped Utilities Index gained 1.22 percent as Algonquin Power & Utilities Corp. (AQN.TO) jumped 6.92 percent and Fortis Inc. (FTS.TO) gathered 1.36 percent.

Aimia Inc. (AIM.TO) plunged 8.38 percent after reporting second-quarter net earnings of C$32.6 million, compared to last year's loss of C$18.8 million. Earnings were C$0.17 per share, compared to loss of C$0.14 per share a year ago.

Ag Growth International Inc. (AFN.TO) shed 2.67 percent, after reporting its second-quarter profit declined to C$8.17 million from C$13.64 million in the previous year. Earnings dropped to C$0.58 per share from C$0.99 per share.

In economic news, producer prices in the U.S. rose slightly more than expected in July, partly reflecting an increase in prices for services, the Labor Department said Friday. The producer price index edged up 0.2 percent in July after climbing by 0.4 percent in June. Economists expected the index to inch up by just 0.1 percent.

Consumer sentiment in the U.S. deteriorated unexpectedly in August, a report from the University of Michigan showed Friday. The preliminary reading on the consumer sentiment index for August came in at 92.9 compared to the final July reading of 93.1. Economists expected the index to climb to a reading of 93.5.

U.S. industrial production increased more than expected in July, with manufacturing output showing a notable rebound, a Federal Reserve report showed Friday. Industrial production climbed 0.6 percent in July after inching up 0.1 percent in June. Economists expected production to increase by about 0.4 percent.

Eurozone economic growth slowed slightly in the second quarter despite slight improvement in Germany, as France came to a halt, restoring the divergence between the two largest euro area economies. Gross domestic product expanded 0.3 percent sequentially in the June quarter, preliminary data from Eurostat showed Friday. The rate of growth was expected to remain unchanged at 0.4 percent.

U.K. construction output recovered in June albeit at a slower than expected pace, the Office for National Statistics revealed Friday. Construction output grew 0.9 percent in June from down 1 percent May. Nonetheless, it was weaker than the expected growth of 2 percent.