TSX Nudges Higher Despite Oil Price Slide -- Canadian Commentary

(RTTNews) - Canadian stocks are slightly higher Monday mid morning amid bargain hunting after last week's major losses.

However, with oil retreating and falling towards new five-year lows after a modest rebound, stocks have given up most of their early gains.

Caution ahead of the U.S. Federal Reserve's monetary policy statement due this Wednesday and a weak reading on manufacturing activity in New York are weighing on the market.

The benchmark S&P/TSX Composite Index is up 8.56 points or 0.06 percent at 13,739.61, after having advanced to 16,852.14 earlier.

On Friday, the index closed down 174.07 points or 1.25 percent at 13,731.05. The index shed over 5 percent last week.

The Energy Index is up 0.5 percent, with Talisman Energy Inc. (TLM.TO) surging up nearly 20 percent. Talisman confirmed Monday that it is in talks with Spanish oil company Repsol S.A. (REPYY.PK) about a "potential corporate transaction". Talisman Energy also said it has been approached by a number of other parties regarding various transactions.

Suncor Energy Inc. (SU.TO), Crescent Point Energy Corp. (CPG.TO), ARC Resources Ltd. (ARX.TO), Tourmaline Oil Corp. (TOU.TO) and Peyto Exploration & Development Corp. (PEY.TO) are moving up 1 to 2.5 percent.

Western Energy Services Corp. (WRG.TO) is rising over 5.5 percent after saying it is planning a 2015 capital spending budget totaling $64 million. The company said it will also buy back up to 9.9 percent of its common shares from the market.

Meanwhile, Encana Corporation (ECA.TO) is declining 2.2 percent and Imperial Oil Limited (IMO.TO) is down about 1 percent.

Husky Energy (HSE.TO) and CNOOC Ltd. (CNU.TO) will be in focus after saying they have begun production at the Liuhua 34-2 gas field in the South China Sea. Husky Energy is modestly lower, while CNOOC is not traded yet.

The Consumer Staples Index is up over 1.5 percent. Loblaw Companies Limited (L.TO), Saputo Inc. (SAP.TO), Metro Inc. (MRU.TO), Empire Company Limited (EMP.A.TO), Jean Coutu Group (PJC) Inc. (PJC.A.TO), Maple Leaf Foods Inc. (MFI.TO) and Cott Corporation (BCB.TO) are moving up 1 to 2.5 percent, while Alimentation Couche-Tard Inc. (ATD.B.TO) is rising over 4 percent.

The Consumer Discretionary Index is up 1.4 percent. Magna International Inc. (MG.TO), Thomson Reuters Corporation (TRI.TO), Shaw Communications Inc. (SJR.B.TO), Canadian Tire Corporation, Limited (CTC.A.TO), Restaurant Brands International Inc. (QSR.TO) and Dollarama Inc. (DOL.TO) are advancing 1 to 2.5 percent, while Amaya Inc. (AYA.TO) is gaining over 5 percent, bouncing back after Friday's sharp fall.

The Financial Index is up 0.7 percent. Among the big six banks, Bank of Montreal (BMO.TO) is up 1.3 percent, while the rest are up 0.3 to 0.7 percent.

The Industrials Index is up 0.65 percent. CAE Inc. (CAE.TO) is up 0.3 percent. The company said it has won a series of contracts during its fiscal year 2015 third quarter valued at more than C$115 million to provide a range of simulation products and upgrades as well as professional and long-term support services.

Canadian Pacific Railway Limited (CP.TO) is advancing 1.3 percent. MacDonald, Dettwiler and Associates Ltd. (MDA.TO) and Canadian National Railway Company (CNR.TO) are moving up 0.7 to 1 percent.

The Information Technology Index is up 0.75 percent. CGI Group Inc. (GIB.A.TO), Open Text Corporation (OTC.TO), DH Corporation (DH.TO), Sierra Wireless, Inc. (SW.TO), Descartes Systems Group Inc. (DSG.TO) and Sandvine Corporation (SVC.TO) are moving up 1 to 2.5 percent.

The Diversified Metals & Mining Index is up 0.8 percent. Teck Resources (TCK.B.TO) is moving up 3.2 percent, Sherritt International Corporation (S.TO) is rising 2.3 percent, Capstone Mining Corp. (CS.TO) is advancing 1.2 percent and Lundin Mining Corporation (LUN.TO) is up 1 percent.

First Quantum Minerals Ltd. (FM.TO) is up 0.5 percent. The company announced that it has temporarily shut down its Ravensthorpe nickel operation in Western Australia due to a structural failure.

The Capped Materials Index is up 0.5 percent. Potash Corporation of Saskatchewan Inc. (POT.TO) and Agrium Inc. (AGU.TO) are up 1.3 percent and 0.7 percent, respectively.

Meanwhile, Eldorado Gold Corporation (ELD.TO), Agnico Eagle Mines (AEM.TO), Silver Wheaton Corp. (SLW.TO) and Goldcorp Inc. (G.TO) are declining 0.4 to 1 percent, while Barrick Gold Corporation (ABX.TO) is down more than 2 percent.

The Telecommunications Index is up 0.75 percent. BCE Inc. (BCE.TO), TELUS Corporation (T.TO) and Rogers Communications Inc. (RCI.B.TO) are up 0.5 to 1 percent, while Manitoba Telecom Services Inc. (MBT.TO) is moving up 1.3 percent.

In commodities, crude oil futures for January are down $0.82 or 1.43 percent at $57.26 a barrel.

Natural gas for January is up $0.021 or 0.57 percent at $3.813 per million btu.

Gold futures for February are down $8.90 or 0.73 percent at $1,213.60 an ounce.

Silver for March is down $0.189 or 1.11 percent at $16.868 an ounce. Meanwhile, copper is down $0.022 or 0.74 percent at $2.912 per pound.

In economic news from the U.S., the New York Federal Reserve's Empire State manufacturing index came in at negative 3.6 for December. This was down sharply from November's reading of 10.2. Economists expected the figure to rise to positive 12.0.