TSX Ends Higher On Mixed Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Tuesday, on some mixed global economic data with some better than expected new orders for U.S. manufactured goods, even as Chinese manufacturing activity on the HSBC purchasing managers' index showed contraction.

China's manufacturing sector contracted marginally in May, as output shrunk slightly while new orders stabilized after a three-month sequence of declines the HSBC manufacturing Purchasing Managers' Index showed.

Nonetheless, investors remained cautious on concerns over eurozone inflation and ahead of the monthly U.S. jobs report. The gains were led mostly by the energy and financial stocks.

The S&P/TSX Composite Index closed Tuesday at 14,734.69, up 53.93 points or 0.37 percent. The index scaled an intraday high of 14,747.86 and a low of 14,659.36.

The Financial Index gained 0.50 percent with the Canadian Imperial Bank of Commerce (CM.TO) edging up 0.03 percent, Bank of Montreal (BMO.TO) up 0.50 percent, National Bank of Canada (NA.TO) added 0.37 percent, Toronto-Dominion Bank (TD.TO) gathered 0.67 percent, and Bank of Nova Scotia (BNS.TO) gained 0.63 percent.

Royal Bank of Canada (RY.TO) shed 0.12 percent.

The Capped Healthcare Index dropped 0.83 percent with Catamaran Corp. (CCT.TO) dropping 0.46 percent and Extendicare Inc. (EXE.TO) shed 0.67 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) surrendered 1.38 percent.

Crude oil ended higher ahead of the weekly crude inventory report from the U.S. Energy Information Administration with the dollar weakening against some major currencies.

The Energy Index added 0.65 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, gaining $0.19 or 0.2 percent to close at $102.66 a barrel Tuesday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) gained 0.79 percent, while Husky Energy Inc. (HSE.TO) slipped 1.03 percent. Canadian Natural Resources Ltd. (CNQ.TO) rose 1.37 percent, while Talisman Energy Inc. (TLM.TO) added 0.72 percent. Enbridge Inc. (ENB.TO) was up 0.14 percent, while Pacific Rubiales Energy Corp. (PRE.TO) dropped 1.79 percent. Cenovus Energy Inc. (CVE.TO) gained 1.03 percent, while Suncor Energy Inc. (SU.TO) moved up 0.45 percent.

Gold futures snapped a six-day losing streak to end slightly higher after some mixed global economic data, even as investors await some crucial reports later in the week.

The Global Gold Index moved up 0.32 percent, with gold futures for August delivery adding $0.50 to close at $1,244.50 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) slipped 0.25 percent, Osisko Mining Corp. (OSK.TO) dropped 0.74 percent, Barrick Gold Corp. (ABX.TO) added 0.58 percent, and Agnico Eagle Mines Limited (AEM.TO) moved up 0.24 percent.

The Capped Materials Index ended flat, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.23 percent.

The Diversified Metals & Mining Index inched up 0.02 percent, with Lundin Mining Corp. (LUN.TO) edging down 0.17 percent, First Quantum Minerals Ltd. (FM.TO) down 1.66 percent, and Teck Resources Limited (TCK.B.TO) down 1.23 percent.

The Information Technology Index dipped 0.05 percent, with BlackBerry Limited (BB.TO) up 0.99 percent, Constellation Software Inc (CSU.TO) up 0.08 percent, Celestica Inc. (CLS.TO) slipped 1.95 percent, and Avigilon Corp. (AVO.TO) dipped 0.15 percent.

The Capped Industrials Index added 0.78 percent, with Bombardier Inc. (BBD.B.TO) up 1.92 percent and Air Canada (AC.B) up 1.44 percent.

Hudson's Bay Company (HBC.TO) slipped 0.12 percent after reporting first-quarter earnings from continuing operations of C$176 million, compared to a loss of C$22 million, prior year. Profit from continuing operations was C$0.97 per share, compared to a loss of C$0.19 per share.

Element Financial Corp. (EFN.TO) dropped 1.95 percent after PHH Corp. (PHH), a provider of business process management services for the mortgage and fleet industries, said Monday that it has agreed to sell its fleet management services business, PHH Arval, to Element Financial Corp. for about $1.40 billion in cash.

B2Gold Corp. (BTO.TO) shed 2.29 percent after the company agreed to buy Papillon Resources Ltd. in a deal worth $570 million, to gain access to a project in Mali.

On the economic front, the from the U.S. Commerce Department showed new orders for U.S. manufactured goods rose by a more than expected 0.7 percent in April, after jumping an upwardly revised 1.5 percent in March. Economists expected orders to climb by about 0.5 percent compared to the 1.1 percent increase reported for the previous month.

According to a reading from HSBC, China's final HSBC Purchasing Managers Index stood at 49.4 in May, down from a preliminary estimate of 49.7. However, that was up from April's reading of 48.1.

Meanwhile, Chinese services sector activity rose to a six month high in May, with the index tracking non-manufacturing activity rising to 55.5, from 54.8 in the previous month.

According to flash estimates from Eurostat, eurozone inflation slowed more than expected in May, declining to 0.5 percent, raising concerns about deflationary pressures. Inflation held below the European Central Bank's target of 'below, but close to 2 percent' for the sixteenth consecutive month. The European Central Bank's monetary policy meeting scheduled for Thursday.

Meanwhile, eurozone unemployment rate declined unexpectedly in April, but still remains at a high level with companies cautious over adding staff and meet rising orders with existing employees. The seasonally adjusted jobless rate fell to 11.7 percent, the lowest since November 2011, from 11.8 percent in March. Economists expected the rate to hold steady at 11.8 percent for the fourth straight month. The number of unemployed totaled 18.751 million in April, down by 76,000 from March. The figure fell by 487,000 from a year-ago.