TSX Pare Gains To End Flat -- Canadian Commentary

(RTTNews) - Canadian stocks ended flat Wednesday, after giving up gains during the session, driven by some upbeat data from the U.S. with new home sales for January rising more than expected -- at its highest level in over five years. The news also eased concerns that the U.S. economy had lost its growth momentum following a slew of disappointing data recently.

In economic news from the U.S., a Commerce Department report on Wednesday showed new home sales to have rebounded unexpectedly in January, after reporting a notable drop in the previous month. Meanwhile, U.S. mortgage applications to buy a home fell last week to its lowest level in nearly two decades, according to the Mortgage Bankers Association.

The S&P/TSX Composite Index closed Wednesday at 14,188.58, down 0.40 points . The index scaled an intraday high of 14,228.82 and a low of 14,176.44.

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

The heavyweight Financial Index dropped 0.27 percent with Bank of Nova Scotia (BNS.TO) ending flat at $63.42, while Canadian Imperial Bank Of Commerce (CM.TO) gained 0.25 percent. Bank of Montreal (BMO.TO) added 0.70 percent, while National Bank (NA.TO) ended flat at $44.23 a share.

Toronto-Dominion Bank (TD.TO) inched up 0.04 percent. The bank had earlier indicated two outages in which its customers in Canada could not access personal bank accounts or trading accounts through online brokerage.

Royal Bank of Canada (RY.TO) shed 0.84 percent after reporting an adjusted first quarter net income of C$1.44 per share, beating estimates by a penny. The bank also announced a higher quarterly dividend.

Gold futures ended lower as the dollar trended higher after some upbeat data from the U.S.

The Global Gold Index dropped 1.01 percent, with gold futures for April delivery, the most actively traded contract, diving $14.70 or 1.1 percent to close at $1,328.00 an ounce Wednesday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) dived 6.65 percent, while Kinross Gold Corp. (K.TO) slipped 0.52 percent. Goldcorp Inc. (G.TO) edged down 0.17 percent, while Barrick Gold Corp. (ABX.TO) surrendered 0.99 percent.

The Capped Materials Index dipped 0.12 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 1.17 percent.

Crude oil ended higher after the official U.S. Energy Information Administration weekly oil report showed a less-than-expected increase in inventories for the week ended February 21.

The Energy Index dropped 0.34 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, adding $0.76 or 0.8 percent to close at $102.59 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.15 percent, while Talisman Energy Inc. (TLM.TO, TLM) shed 0.94 percent. Encana Corp. (ECA.TO, ECA) added 0.38 percent, Cenovus Energy Inc. (CVE.TO) moved up 0.28 percent, and Suncor Energy Inc.(SU.TO) surrendered 0.30 percent.

The Diversified Metals & Mining Index gathered 0.96 percent, with Teck Resources Limited (TCK.B.TO) adding 0.78 percent, while First Quantum Minerals (FM.TO) added 2.43 percent. Lundin Mining Corp. (LUN.TO) dropped 0.19 percent.

Uranium miners Cameco Corp. (CCO.TO) jumped 5 percent, while Denison Mines Corp. (DML.TO) surged 8.38 percent after Japan said nuclear generation would be continued to meet the country's power needs.

The Information Technology Index added 1.52 percent, with BlackBerry Limited (BB.TO) shedding 2.13 percent.

The Capped Industrials Index added 0.47 percent, with Bombardier Inc. (BBD.B.TO) dipping 0.28 percent.

In corporate news, Sears Canada Inc. (SCC.TO) added 2.41 percent after reporting fourth-quarter net earnings that surged to $373.7 million or $3.67 per share from $39.9 million or $0.39 per share a year ago. That's despite weather-related store closures in December.

In economic news, a Commerce Department report showed new home sales in the U.S. jumped 9.6 percent to a seasonally adjusted annual rate of 468,000 in January from an upwardly revised December rate of 427,000. Economists expected new home sales to drop to an annual rate of 400,000 from the 414,000 originally reported for the previous month. Sales was at its highest level since July 2008.

U.S. mortgage applications dropped last week to its lowest level since 2000, a report from the Mortgage Bankers Association showed. The MBA's seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 8.5 percent to 348.5 in the week ended February 21.

Germany's consumer confidence is set to improve to a seven-year high in March, reflecting upbeat income expectations amid stable labor market development, a closely watched survey from the market research group GfK showed Wednesday. The forward-looking consumer confidence index rose to 8.5 points from 8.3 points in February. The index was forecast to remain unchanged at February's original score of 8.2.