TSX Ends Higher On Upbeat Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, on some upbeat economic data from the U.S. with its gross domestic product increasing more than previously estimated in the third quarter. Nevertheless, the gains were limited as crude oil prices plummeted to drive energy stocks down, with U.S. consumer confidence deteriorating unexpectedly in November.

The uptick was led by mining and gold stocks, even as recent data offered a glimmer of hope that the European economy is on the mend following a protracted dry spell.

U.S. growth was far stronger than initially estimated, with economic activity unexpectedly increasing more than previously estimated in the third quarter, a report from the Commerce Department showed Tuesday.

Nevertheless, consumer confidence in the U.S. unexpectedly deteriorated in November, a report from the Conference Board showed Tuesday. Meanwhile, home prices in major U.S. metropolitan areas experienced a broad based slowdown in September, a Standard & Poor's report said Tuesday.

Revised estimates released by the German Federal Statistical Office showed that the German economy expanded 0.1 percent sequentially in the third quarter, confirming that Europe's powerhouse managed to avoid a recession.

Canadian stocks were also boosted when Prime Minister Stephen Harper announced $5.8 billion in new spending. Meanwhile, Statistics Canada said retail sales rose 0.8 percent in September to $42.8 billion.

The Organization for Economic Co-operation and Development now says the Bank of Canada will start raising its key interest rate next spring, months ahead of current market projections.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,072.82, up 57.41 points or 0.38 percent. The index scaled a intraday high of 15,100.48 and a low of 15,031.60.

On Monday, the index ended lower snapping a six-day winning streak with investors on a profit-taking spree and on sluggish commodity prices.

Crude oil plummeted over two percent to end lower for a second straight session on Tuesday, after reports said a meeting of four major oil producers failed to agree on production cuts, ahead of the upcoming OPEC meeting in Vienna.

The cartel is seemingly divided on whether to cut supplies in order to lift crude oil prices at their November 27 meeting. The Saudis reportedly want prices to remain low in order to stifle non-OPEC competition and the emergence of alternative energies.

The Energy Index dropped 0.85 percent, with U.S. crude oil futures for January delivery plunging $1.69 or 2.2 percent to close at $74.09 a barrel on the Nymex Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 1.71 percent, Talisman Energy Inc. (TLM.TO) dropped 2.51 percent, Canadian Oil Sands Limited (COS.TO) dipped 0.06 percent, Cenovus Energy Inc. (CVE.TO) surrendered 0.96 percent, Encana Corp. (ECA:TSX) shed 0.87 percent, and Pacific Rubiales Energy Corp. (PRE.TO) fell 1.89 percent.

Canadian Natural Resources Limited (CNQ.TO) edged up 0.07 percent, while Enbridge, Inc. (ENB.TO) added 0.76 percent.

Gold futures ended higher as the dollar trended lower on some mixed data from the U.S. with gross domestic product increasing more than previously estimated in the third quarter, although consumer confidence deteriorated unexpectedly in November.

The Global Gold Index jumped 4.20 percent, with gold for December delivery gaining $1.40 or near 0.1 percent to settle at $1,197.10 an ounce on the New York Mercantile Exchange Tuesday.

In the gold space, Kinross Gold Corp. (K.TO) surged 11.11 percent, Goldcorp Inc. (G.TO) added 4.86 percent, Barrick Gold Corp. (ABX.TO) gathered 4.29 percent, and Yamana Gold Inc. (YRI.TO) jumped 5.66 percent.

Detour Gold Corp. (DGC.TO) gathered 6.86 percent, while Eldorado Gold Corp. (ELD.TO) soared 10.66 percent.

The Capped Materials Index jumped 2.46 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) dipping 0.28 percent.

The Healthcare Index added 0.39 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) advanced 1.14 percent, Catamaran Corp. (CCT.TO) dropped 0.34 percent and Extendicare Inc. (EXE.TO) gained 0.29 percent.

The heavyweight Financial Index gained 0.22 percent, as Bank of Nova Scotia (BNS.TO) fell 0.07 percent, Toronto-Dominion Bank (TD.TO) edged up 0.04 percent, Canadian Imperial Bank of Commerce (CM.TO) gained 1.00 percent, Bank of Montreal (BMO.TO) inched up 0.04 percent, and National Bank of Canada (NA.TO) shed 0.21 percent.

Royal Bank of Canada (RY.TO) dropped 0.18 percent.

The Diversified Metals & Mining Index gathered 1.85 percent, with First Quantum Minerals Ltd. (FM.TO) gaining 4.35 percent, Teck Resources Limited (TCK.B.TO) up 0.89 percent, Lundin Mining Corp. (LUN.TO) up 1.74 percent. Sherritt International Corp. (S.TO) down 1.41 percent.

The Capped Industrials Index moved up 0.77 percent, with Bombardier Inc. (BBD.B.TO) up 3.29 percent and Air Canada (AC) up 3.01 percent. Canadian National Railway (CNR.TO) gained 1.65 percent, Canadian Pacific Railway (CP.TO) edged down 0.09 percent, and SNC-Lavalin Group Inc. (SNC.TO) added 0.93 percent.

The Information Technology Index added 0.18 percent with BlackBerry Ltd. (BB.TO) dropping 1.19 percent, on reports the smartphone maker is offering to pay iPhone users as much as $550 to switch to the BlackBerry Passport.

The Telecom Index dipped 0.27 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.67 percent, TELUS Corp. (T.TO) down 0.66 percent, and BCE Inc. (BCE.TO) down 0.62 percent.

The Consumer Discretionary Index gained 0.50 percent, with Tim Hortons Inc. (THI.TO) down 0.38 percent.

The Consumer Staples Index added 0.67 percent, with Metro Inc. (MRU.TO) up 2.01 percent and Saputo Inc. (SAP.TO) down 2.80 percent.

In corporate news, gas station operator Alimentation Couche-Tard Inc. (ATD.B.TO) jumped 3.98 percent after having reported a 25 percent rise in quarterly profit.

Reitmans Canada Ltd. surrendered 1.46 percent after announcing the closure of its Smart Set clothing stores.

In economic news, U.S. gross domestic product increased 3.9 percent in the third quarter compared to the previously reported 3.5 percent increase. The upward revision came as a surprise, with economists expecting the pace of GDP growth to be revised downward to 3.3 percent.

Home prices in major U.S. metropolitan areas experienced a broad based slowdown, with the S&P/Case-Shiller 20-City Composite Home Price Index rising at an annual rate of 4.9 percent in September compared to the 5.6 percent growth seen in August. Economists expected the pace of growth to slow to 4.7 percent.

The Conference Board's consumer confidence index for November dropped to 88.7 from a downwardly revised 94.1 in October. Economists expected the index to climb to 96.5 from the 94.5 originally reported for the previous month.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) said Tuesday any prolonged stagnation in the euro area could hurt global growth and stronger policy responses are needed to avoid such risks. In its latest Economic Outlook, the Paris-based think tank also said any prolonged stagnation in the euro area could have knock-on effects on other economies through trade and financial links.