TSX Ends Lower On Downbeat Earnings, Mixed Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Thursday, driven mainly by resource stocks after commodity prices fell significantly. Investors also weighed some mixed economic data from the U.S., which did little to inspire faith in the economy.

Stocks were also hurt by some disappointing corporate earnings amid worries over the eurozone economy. Lower crude oil and gold prices contributed to the weakness in the market.

In economic news, U.S. consumer prices increased in line with economists' estimates in April, with prices for gasoline, shelter, and food all rising, a Labor Department report showed Thursday. Meanwhile, business conditions for New York manufacturers improved significantly in May with the index of regional manufacturing activity at its highest level in nearly four years, a report from the Federal Reserve Bank of New York said Thursday.

Activity in the Philadelphia-area manufacturing sector expanded for the third consecutive month in May, although the index of activity in the sector fell compared to the previous month.

The S&P/TSX Composite Index closed Thursday at 14,588.89, down 84.84 points or 0.58 percent. The index scaled an intraday high of 14,673.73 and a low of 14,516.15.

Yesterday, the index closed marginally lower driven by resource stock on global cues and amid hopes of some Chinese economic reforms.

The Capped Healthcare Index dropped 1.11 percent as Catamaran Corp. (CCT.TO) declined 0.69 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) slipped 2.27 percent.

Crude oil declined tracking declining European and U.S. equity markets, after some mixed economic data out of the U.S., with investors weighing the better than expected crude stockpiles last week.

The Energy Index dived 0.70 percent, with U.S. crude oil futures for June delivery shedding $0.87 or 0.9 percent to close at $101.50 a barrel a barrel Thursday on the Nymex.

Encana Corp. (ECA.TO) gained 0.85 percent, while Baytex Energy Corp. (BTE.TO) slipped 1.37 percent.

Among other energy stocks, Husky Energy Inc. (HSE.TO) dropped 0.60 percent, Canadian Natural Resources Ltd. (CNQ.TO) shed 1.06 percent, and Suncor Energy Inc. (SU.TO) slipped 0.44 percent. Canadian Oil Sands Limited (COS.TO) dropped 1.15 percent, while Talisman Energy Inc. (TLM.TO) dropped 1.47 percent.

The Global Gold Index dropped 1.75 percent, with gold futures for June delivery dropping $12.30 percent or 0.9 percent to close at $1,293.60 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 2.43 percent, Osisko Mining Corp. (OSK.TO) slipped 1.59 percent, Barrick Gold Corp. (ABX.TO) plunged 3.38 percent, and Agnico Eagle Mines Limited (AEM.TO) down 1.27 percent.

The Capped Materials Index surrendered 1.63 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.06 percent.

The Financial Index slipped 0.30 percent with the Toronto-Dominion Bank (TD.TO) down 0.84 percent, Royal Bank of Canada (RY.TO) down 0.44 percent, The Bank of Nova Scotia (BNS.TO) adding 0.84 percent, and Bank of Montreal (BMO.TO) down 0.61 percent.

Bank of Nova Scotia said it might consider divesting some or all of its 37 percent stake in asset manager CI Financial and redeploy the capital elsewhere. Shares of CI Financial Corp. (CIX.TO) are declining over 7 percent.

The Diversified Metals & Mining Index shed 1.06 percent, with Lundin Mining Corp. (LUN.TO) down 2.24 percent, First Quantum Minerals Ltd. (FM.TO) down 0.31 percent, and Teck Resources Limited (TCK.B.TO) down 1.50 percent.

The Information Technology Index dropped 0.35 percent, with BlackBerry Limited (BB.TO) up 0.38 percent, Constellation Software Inc (CSU.TO) down 1.97 percent, and Celestica Inc. (CLS.TO) down 0.49 percent. Avigilon Corp. (AVO.TO) dropped 3.75 percent.

The Capped Industrials Index dived 1.39 percent, with Bombardier Inc. (BBD.B.TO) plummeting 7.14 percent.

Air Canada (AC.B) declined 3.77 percent after reporting a first-quarter net loss that widened to C$341 million or C$1.20 per share from C$260 million or C$0.95 per share in the first quarter of 2013.

Birchcliff Energy Ltd (BIR.T) gained 1.08 percent, reporting a first quarter profit of $0.27 per share, compared to $0.05 per share in the same quarter last year.

BSM Technologies Inc. (GPS.TO) dropped 1.85 percent after indicating that its wholly-owned subsidiary, BSM Technologies U.S. Holdings, Inc.,has entered into a definitive purchase agreement to acquire 100% of the membership interests of privately held Lat-Lon, L.L.C.

Chorus Aviation Inc. (CHR.B.TO) gained 3.59 percent after the company reported adjusted net income of $20.3 million for the first quarter, up 38 percent from last year.

CAE Inc. (CAE.TO) added 1.72 percent after its net income attributable to equity holders for the fourth quarter increased to C$60.0 million or C$0.23 per share from C$43.1 million or C$0.17 per share in the fourth quarter last year.

Transition Therapeutics Inc. (TTH.TO) gained 1.36 percent after announcing the dosing of the first patient in a Phase 2 clinical study of TT-401, a drug candidate for the treatment of type 2 diabetes.

Boyuan Construction Group, Inc., (BOY.TO) jumped 6.41 percent after the company reported a third-quarter profit of $3.45 million or $0.13 per share, up from $1.35 million or $0.06 per share in the same period last year.

On the economic front, manufacturing sales edged up 0.4 percent to $50.9 billion in March, the sixth advance in seven months, a report from Statistics Canada showed.

Meanwhile, Canadian home sales rose 2.7 percent in April, the Canadian Real Estate Association said.

In economic news from the U.S., the Labor Department said initial jobless claims fell to a seven-year low to 297,000, down 24,000 from the previous week's revised level of 321,000. Economists had been expecting initial jobless claims to decline to 317,000 from 319,000 in the previous week.

Homebuilder confidence in the U.S. unexpectedly deteriorated in May, the National Association of Home Builders said in a report Thursday, with the homebuilder confidence index dropping to its lowest level in a year. The NAHB/Wells Fargo Housing Market Index edged down to 45 in May from a revised 46 in April. Economists expected the index to climb to a reading of 49 from the 47 originally reported for the previous month.

The U.S. Labor Department said its consumer price index rose 0.3 percent in April after edging up by 0.2 percent in March. Economists expected consumer prices to rise by about 0.3 percent. Core consumer prices, which exclude food and energy prices, edged up by 0.2 percent, matching the increase seen in the previous month. Core prices had been expected to tick up by 0.1 percent.

A Federal Reserve Bank of New York report showed business conditions for New York manufacturers improved significantly in May, with the index of regional manufacturing activity reaching its highest level in nearly four years. The New York Fed said its general business conditions index jumped to 19.0 in May from 1.3 in April, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to climb to a reading of 5.0.

The Federal Reserve's report on U.S. industrial production showed an unexpected 0.6 percent drop in output during April, following an upwardly revised 0.9 percent in March. Economists expected production to come in unchanged compared to the 0.7 percent increase originally reported for the previous month.

According to a report from the Federal Reserve Bank of Philadelphia, activity in the Philadelphia-area manufacturing sector expanded for the third consecutive month in May, although the index of activity in the sector dipped to 15.4, down from 16.6 in April. Economists expected the index to drop to a reading of 14.3.

Meanwhile, Russia's economic growth slowed significantly in the first quarter, as the fallout from the Ukraine crisis hurt the economy as investments left the country. Gross domestic product rose just 0.9 percent year-on-year, following 2 percent increase in the fourth quarter of 2013, figures from the statistical office showed Thursday. Economists expected a weaker growth figure of 0.7 percent. The country's economy ministry had forecast 0.8 percent expansion for the first quarter.