TSX Ends Higher On Strong Earnings -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher Thursday, driven by some strong earnings from the banking sector even as some weak data from the U.S. dampened sentiments. Investors weighed the the escalating tensions in Ukraine with some disappointing U.S. jobless claims and manufactured durable goods data suggesting a stalled recovery for the world's largest economy.

In some weak economic news from the U.S., new orders for manufactured durable goods declined in January, largely due to weakness in demand for transportation equipment which is typically very volatile, a Commerce Department report showed Thursday.

First-time claims for U.S. unemployment benefits rose more than expected in the week ended February 22, a report from the Labor Department revealed Thursday.

Meanwhile, tensions in Ukraine continued to escalate with the Crimean region in focus. The majority population in Ukraine's strategically important shipping region of Crimea are Russian speakers. Meanwhile, the United States warned Russia it would be a "grave mistake" to intervene militarily in Ukraine.

Toronto's main stock index has edged sideways all week after seeing a 13-day win streak snapped last Friday.

The S&P/TSX Composite Index closed Thursday at 14,214.74, up 26.16 points or 0.18 percent. The index scaled an intraday high of 14,247.32 and a low of 14,185.53.

Bank earnings remain in focus, with Canada's largest lenders reporting slightly better-than-expected quarterly results.

The heavyweight Financial Index added 0.52 percent with Bank of Nova Scotia (BNS.TO) gaining 0.20 percent, while Bank of Montreal (BMO.TO) moved up 0.30 percent. National Bank (NA.TO) gathered 0.16 percent, while Royal Bank of Canada (RY.TO) gained 0.42 percent.

Canadian Imperial Bank Of Commerce (CM.TO) added 0.97 percent after reporting strong first quarter earnings of $2.31 per share, well ahead of analysts' expectations of $2.14 per share.

Toronto-Dominion Bank (TD.TO) gained 0.69 percent, after reporting better-than expected first quarter earnings of C$1.06 per share from C$1.00 per share in the prior year quarter.

Drug maker Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) added 1.59 percent after reporting a profit for the fourth quarter compared to a loss last year.

Maple Leaf Foods Inc. (MFI.TO) gained 2.77 percent after reporting a fourth-quarter net loss from continuing operations of C$14.45 million or C$0.13 per share, compared to profit of C$40.95 million or C$0.27 per share prior year.

The Global Gold Index slipped 0.04 percent, with gold futures for April delivery, the most actively traded contract, gaining $3.80 or 0.3 percent to close at $1,331.80 an ounce Thursday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) slipped 0.52 percent. Goldcorp Inc. (G.TO) gained 0.52 percent, while Barrick Gold Corp. (ABX.TO) surrendered 0.99 percent.

The Capped Materials Index edged up 0.16 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.22 percent.

The Energy Index dropped 0.35 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, shedding $0.19 or 0.2 percent to close at $102.40 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.93 percent, while Encana Corp. (ECA.TO, ECA) shed 1.70 percent. Cenovus Energy Inc. (CVE.TO) moved up 0.66 percent, while Suncor Energy Inc.(SU.TO) slipped 0.03 percent.

The Diversified Metals & Mining Index gathered 0.39 percent, with Teck Resources Limited (TCK.B.TO) adding 0.93 percent, while First Quantum Minerals (FM.TO) moved up 0.60 percent.

The Information Technology Index added 0.79 percent, with BlackBerry Limited (BB.TO) gaining 1.74 percent.

The Capped Industrials Index edged up 0.11 percent, with Bombardier Inc. (BBD.B.TO) adding 0.28 percent.

In economic news, new orders for U.S. manufactured durable goods orders fell by 1.0 percent in January after tumbling by a revised 5.3 percent in December. Economists expected orders to drop by about 1.6 percent compared to the 4.2 percent decrease reported for the previous month.

First-time claims for U.S. unemployment benefits rose to 348,000, an increase of 14,000 from the previous week's revised figure of 334,000. Economists expected jobless claims to edge down to 335,000 from the 336,000 originally reported for the previous week.

Eurozone economic confidence improved for the tenth consecutive month to a 31-month high in February, driven by upbeat services and industrial sentiment, data from the European Commission showed Thursday. The economic sentiment index rose unexpectedly to 101.2 in February from 101 in January. The score was forecast at 100.7.

Germany's unemployment eased further in February to its lowest level in nearly one-and half years, while the share of jobless persons in the labor force remained unchanged, as strong economic recovery continues to lift confidence. The Federal Labor Agency on Thursday said the number of job-seekers dropped by 14,000 to around 2.914 million in February from the prior month, marking a third consecutive decline. Economists had forecast unemployment to fall by 10,000.