TSX Rallies To End Higher -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Thursday, driven by strength in energy and financial stocks even as mining stocks were pulled down by weak gold prices, notwithstanding some soft economic data from the U.S.

In economic news from the U.S., a Labor Department report on Thursday showed a less than expected decrease in initial claims for unemployment benefits in the week ended June 21, but the drop only offset the upward revision to the previous week's data. Meanwhile, personal income in the U.S. increased in line with economist estimates in May, although personal spending showed a smaller than expected increase.

The S&P/TSX Composite Index closed Thursday at 15,030.74, up 56.09 points or 0.37 percent. The index scaled an intraday high of 15,036.78 and a low of 14,937.88.

On Wednesday, the index moved up, challenging record highs above 15,100 last week, but fell back on profit taking and technical resistance, with lingering concerns over the developments in Iraq.

Crude oil ended lower as the dollar trended higher on some soft economic data out of the U.S. with initial claims for unemployment benefits declining less than expected, amid concerns over the escalating sectarian violence in Iraq.

The Energy Index gained 0.73 percent, although U.S. crude oil futures for August delivery, the most actively traded contract, dropping $0.66 or 0.6 percent to close at $105.84 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.50 percent, Talisman Energy Inc. (TLM.TO) added 0.80 percent, Suncor Energy Inc.(SU.TO) gained 1.52 percent, Cenovus Energy Inc. (CVE.TO) up 1.45 percent, and Encana Corp. (ECA.TO) down 1.12 percent.

The Financial Index added 0.43 percent with Toronto-Dominion Bank up 0.17 percent, Bank of Montreal (BMO.TO) up 0.49 percent, National Bank of Canada (NA.TO) up 0.11 percent, and Bank of Nova Scotia (BNS.TO) gathering 0.73 percent.

The Capped Healthcare Index slipped 0.22 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 0.27 percent, and Catamaran Corporation (CCT.TO) up 1.00 percent

Gold futures snapped a six-day gain to end lower after the dollar strengthened against a basket of some major currencies on some mixed data from the U.S., with investors opting for profit taking amid the developments in Iraq.

The Global Gold Index gained 0.39 percent, with gold futures for August delivery shedding $5.60 or 0.4 percent to close at $1,317.00 an ounce Thursday on the Nymex.

Among gold stocks, B2Gold Corp. (BTO.TO) gained 0.65 percent, Yamana Gold Inc. (YRI.TO) slipped 2.25 percent, Goldcorp Inc. (G.TO) up 0.61 percent and Barrick Gold Corp. (ABX.TO) gained 0.84 percent.

The Capped Materials Index added 0.23 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) slipping 0.52 percent.

The Diversified Metals & Mining Index edged up 0.07 percent, with Lundin Mining Corp. (LUN.TO) up 1.44 percent, First Quantum Minerals Ltd. (FM.TO) up 1.86 percent, and Teck Resources Limited (TCK.B.TO) gained 0.30 percent.

The Information Technology Index gained 0.47 percent, with BlackBerry Limited (BB.TO) down 1.03 percent.

Among other tech stocks, CGI Group Inc. (GIB.A.TO) added 2.15 percent, Constellation Software Inc. (CSU.TO) added 0.56 percent, and Avigilon Corp. (AVO.TO) shed 0.95 percent.

The Capped Industrials Index gathered 0.58 percent, with Bombardier Inc. (BBD.B.TO) down 0.52 percent, while Air Canada (ACB.B.TO) gained 3.18 percent.

EXFO Inc (EXF.TO) jumped 5.51 percent after the company reported third-quarter net earnings of $1.7 million or $0.03 per share compared with a loss of $0.9 million or $0.01 per share last year.

Enerplus Corp. (ERF.TO) gained 2.56 percent after signing agreements for an offering of senior unsecured notes to be issued on a private placement basis to institutional investors in the U.S. in an aggregate principal amount of $200 million.

QLT Inc. (QLT.TO) soared 13.62 percent after signing a definitive agreement to merge itself with Auxilium Pharmaceuticals Inc. (AUXL), a fully integrated specialty biopharmaceutical company.

Empire Company Ltd. (EMP.A.TO) added 0.88 percent after reporting fourth quarter net earnings of C$1.5 million or C$0.02 per share, down from C$102.5 million or C$1.51 per share last year. On an adjusted basis, net earnings from continuing operations, net of non-controlling interest, amounted to C$131.3 million or C$1.42 per share.

Shaw Communications Inc. (SJR.B.TO) ended flat at $26.35 a share after reporting a third quarter net income of C$219 million, down from the prior year's C$239 million, with earnings per share decreasing to C$0.47 from C$0.52 in the same quarter last year.

In economic news from the U.S., a report from the Commerce Department showed initial jobless claims to have declined by 2,000 to a seasonally adjusted 312,000 in the week ended June 21, down from previous week's revised figure of 314,000. Economists expected claims to decline to 310,000 from the 312,000 originally reported for the previous week.

Data from the Commerce Department showed personal income in the U.S. rose inline with estimates in May, increasing by 0.4 percent, after climbing 0.3 percent in April. Personal spending was up 0.2 percent in May, after coming in unchanged in the previous month.