TSX Rallies On Commodities Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks are moving higher Friday morning, as energy and mining stocks rallied on a strong rebound in commodity prices.

Markets are in an upbeat mood amid mixed jobs reports from Canada and the U.S.

According to Statistics Canada, unemployment rate in Canada dropped down 6.5 percent in October, from 6.8 percent in the preceding month. Employment rate was up at 61.6 percent, from 61.5 percent in the previous month.

Data from the U.S. Labor Department showed non-farm payroll employment to have risen by 214,000 jobs in October following an upwardly revised increase of 256,000 jobs in September.

Economists had expected employment to climb by about 235,000 jobs, compared to the addition of 248,000 jobs originally reported for the previous month.

Unemployment rate hit its lowest level since July 2008, dropping down to 5.8 percent in October, from 5.9 percent a month earlier.

The benchmark S&P/TSX Composite Index is up 126.32 points or 0.87 percent at 14,689.70. The index looks set to end the week modestly higher.

On Thursday, the index ended up 15.12 points or 0.10 percent at 14,563.38, after scaling a intraday high of 14,640.92 and a low of 14,488.11.

The Energy Index is up nearly 2 percent. Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Encana Corporation (ECA.TO), Crescent Point Energy Corp. (CPG.TO), ARC Resources (ARX.TO), Canadian Oil Sands (COS.TO), Husky Energy (HSE.To) and Tourmaline Oil Corp. (TOU.TO) are up 1.2 to 3 percent.

Athabasca Oil Corp. (ATH.TO) is up nearly 2 percent after narrowing its net loss for the third quarter to $19.9 million, from $30.5 million in the year ago quarter.

Bankers Petroleum Ltd. (BNK.TO) is moving up nearly 5 percent after reporting third quarter net income of $25.59 million or $0.10 per share, from $19.51 million or $0.08 per share in the year ago quarter.

Spartan Energy (SPE.TO) is moving up nearly 5 percent, Raging River Exploration Inc (RRX.TO) is climbing 11.5 percent and Paladin Energy (PDN.TO) is up 12 percent.

The Diversified Metals & Mining Index is up nearly 3 percent, with First Quantum Minerals Ltd. (FM.TO), Teck Resources Limited (TCK.B.TO) and HudBay Minerals Inc. (HBM.TO) gaining 3.7 to 4.5 percent.

Nevsun Resources Ltd. (NSU.TO), Turquoise Hill Resources Ltd. (TRQ.TO), Lundin Mining Corporation (LUN.TO) and Major Drilling Group International Inc. (MDI.TO) are advancing 1.2 to 3 percent.

The Capped Materials Index is up over 3 percent. GoldCorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Silver Wheaton Corp. (SLW.TO) and Agnico Eagle Mines (AEM.TO) are up 3.5 to 6 percent.

Yamana Gold Corp. (YRI.TO) is moving up 7.2 percent, Kinross Gold Corporation (K.TO) is rising 10.3 percent, B2Gold Corp. (BTO.TO) is up 8 percent and Eldorado Gold Corporation (ELD.TO) is gaining 5 percent.

The Financial Index is up marginally. Among big six banks, National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CM.TO) are modestly lower. Meanwhile, Bank of Nova Scotia (BNS.TO) is up 0.4 percent. Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) are flat.

Fortis Inc. (FTS.TO) posted third-quarter net earnings of C$14 million or C$0.06 per share, compared to C$48 million or C$0.23 per share in the prior year period. The stock is lower by about 0.5 percent.

Cardiome Pharma Corp. (COM.TO) reported a net loss of $4.4 million or $0.26 per common share for the third quarter, compared to a net loss of $3.6 million or $0.29 per common share in the year ago quarter. The stock is down marginally.

Stella-Jones Inc. (SJ.TO) reported second quarter net income of $29.54 million or $0.43 per share, compared to net income of $27.63 million or $0.40 per share in the previous corresponding quarter. The stock is up 0.3 percent.

GMP Capital Inc. (GMP.TO) is modestly higher after reporting net income of $6.1 million or $0.05 per share for the third quarter, against net loss of $0.5 million or $0.01 per share in third quarter 2013.

Emera (EMA.TO) reported third-quarter net income of C$28.2 million or C$0.20 per basic share, compared to C$28.8 million or C$0.22 per basic share, prior year. The stock is down marginally.

In commodities, crude oil futures for December are up $1.19 or 149 percent at $79.10 a barrel.

Natural gas for December is down $0.010 or 0.23 percent at $4.394 per million btu.

Gold futures for December are up $22.50 or 1.97 percent at $1,165.10 an ounce.

Silver for December is up $0.240 or 1.56 percent at $15.653 an ounce. Meanwhile, copper is up $0.020 or 0.66 percent at $3.037 per pound.

Markets are also looking ahead to Federal Reserve Chair Janet Yellen's speech at the Bank of France conference in Paris at 10:15 am ET.

In economic news from eurozone, industrial production in Germany and France rebounded in September, although the pace of recovery remained weak.