TSX Ends Lower On Energy Stocks - Canadian Commentary

(RTTNews) - Canadian stocks snapped a four-day gain to end lower Monday, tracking declining U.S. equity markets, as energy stocks dropped with crude oil prices diving on oversupply concerns. The six western powers and Iran concluded a six-month deal that would ease sanction on Tehran's nuclear development program starting January 20.

Investors also continued to weigh some soft jobs data out of the U.S. last week that triggered speculation that the Federal Reserve could delay enforcing further cuts to its quantitative easing program in the near future.

Elsewhere, Asian stocks settled higher after easing concerns the Federal Reserve will accelerate cuts to its stimulus program. Nonetheless, European markets ended in positive territory amid stimulus hopes.

The S&P/TSX Composite Index closed Monday at 13,681.48, down 66.04 points or 0.48 percent. The index scaled an intraday high of 13,771.13 and a low of 13,658.03. The index added over 250 points or nearly 2 percent in the past four straight sessions.

Crude oil ended sharply lower on oversupply concerns after Iran reached a deal on its nuclear program with major Western powers last weekend. With Libya's anticipated return to normal production and export of its crude oil, prices came under pressure with a looming oversupply scenario globally.

The Energy Index shed 1.31 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, shedding $0.92 or 1.0 percent to close at $91.80 a barrel Monday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) slipped 0.94 percent, while Suncor Energy Inc. (SU.TO) shed 1.82 percent. Talisman Energy Inc. (TLM.TO) surrendered 2.01 percent, while Encana Corp. (ECA.TO) lost 1.47 percent.

The Information Technology Index shed 1.22 percent, with smartphone maker BlackBerry Limited (BB.TO) plunging 4.71 percent.

The Diversified Metals & Mining Index gained 0.38 percent, with Teck Resources Limited (TCK.B.TO) up 0.58 percent and First Quantum Minerals Ltd. (FM.TO) up 0.59 percent.

The Capped Materials Index added 1.07 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.22percent.

Gold futures ended higher for a third straight session Monday, due to lack of direction with no major economic releases, after some disappointing non-farm payrolls jobs data out of the U.S. last Friday.

The Global Gold Index gained 2.15 percent, with gold futures for February delivery, the most actively traded contract, adding $4.20 or 0.3 percent to close at $1,2451.10 an ounce Monday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) moved up 1.22 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.45 percent. Yamana Gold Inc. (YRI.TO) gathered 2.12percent.

Goldcorp Inc. (G.TO) lost 0.99 percent after announcing that it would acquire all of the outstanding common shares of Osisko Mining Corp.(OSK.TO) for about C$2.6 billion in cash and shares. Osisko Mining shares surged 20.70 percent.

The Financial Index edged up 0.38 percent with Bank of Montreal (BMO.TO) up 0.49 percent, Royal Bank of Canada (RY.TO) up 0.04 percent, the Bank of Nova Scotia (BNS.TO) down 0.25 percent, and Toronto-Dominion Bank (TD.TO) gained 0.11 percent.

The Capped Industrials Index dropped 1.10 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) edging down 0.44 percent.

Sports apparel maker lululemon athletica inc. (LULU) lost 16.61 percent, after the company said its fourth-quarter revenue and profit would be much lower than previous estimate.

Pharmaceutical industry services provider Patheon Inc. (PTI.TO) slipped 0.40 percent after reporting a narrower full year loss of $35.9 million or $0.256 per share compared to a loss of $106.7 million or $0.823 per share last year.

Meanwhile, Tekmira Pharmaceuticals Corp. (TKM.TO) jumped 20.85 percent after signing a development agreement on delivery technology for agricultural applications with Monsanto.

In economic news, the U.S. recorded a budget surplus of $53 billion in December, resulting in a 41 percent reduction in deficit for the first quarter of 2014, according to the Treasury Department on Monday. The reduction was attributed to the near $40 billion payment from mortgager Fannie Mae and Freddie Mac, and as well increased tax receipts.

The deficit for the first quarter of fiscal year 2014 climbed down $120 billion to $174 billion from a year ago, mostly on lower spending, higher tax revenues, and the ongoing economic recovery.

Meanwhile, the Organization for Economic Cooperation and Development or OECD, said its leading indicator continues to signal an improving economic outlook in most advanced economies. The composite leading index, designed to anticipate turning points in economic activity, rose to 100.9 in November from 100.7 in October, the Paris-based organization said Monday.

OECD indicators point to economic growth firming in Japan, the United States and the United Kingdom. At the same time, the index for Canada indicates a positive change in momentum. In euro area as a whole, and in France and Italy, the indicators suggest a positive change in momentum. In Germany, the indicator showed signals of firming growth. In the emerging economies, the indices point to a tentative positive change in momentum in China and to growth below trend in India.

During this week, traders focus will be on the U.S. Commerce Department's retail sales report for December, the jobless claims report, the National Association of Home Builders' housing market index for January, January manufacturing surveys by the New York Federal Reserve and the Philadelphia Federal Reserve, and the Federal Reserve's industrial production report for December