Canadian Shares Modestly Higher On Some Upbeat Results

(RTTNews) - The Canadian stock market is advancing after a weak start, led by gains in energy, industrials and information technology shares. The market is rising thanks to some upbeat corporate earnings reports.

Global cues are not any positive, with U.S. stocks trading lower on disappointing retails sales data, and European stocks finishing weak after early gains. Asian markets ended mixed.

The benchmark S&P/TSX Composite Index is up 55.61 points, or 0.36%, at 15,683.34. The index, which touched a low of 15,608.15 in early trades, advanced to 15,716.72 before paring some gains.

In economic news, data released by Statistics Canada showed manufacturing sales in Canada declined for the third successive month, falling 1.3% to $56.4 billion, on lower sales of petroleum and coal products.

Sales declined in 12 of 21 industries, representing 72.7% of manufacturing sales, the data showed. In terms of volumes, sales declined 1.2% in December.

The Capped Energy Index is rising 1.3%. Suncor Energy (SU.TO), Vermilion Energy (VET.TO) and PrairieSky Royalty (PSK.TO) are up 1 to 1.4%.

Cenovus Energy (CVE.TO), Encana Corporation (ECA.TO) and Husky Energy (HSE.TO) are gaining 2.5% to 2.7%.

The Capped Information Technology Index is up 3.25%. Constellation Software Inc. (CSU.TO) is rising 11% on strong results. The company announced on Wednesday that its adjusted net income increased 33% to $187 million ($8.84 on a diluted per share basis) in the fourth quarter, from $141 million ($6.64 on a diluted per share basis) in the corresponding quarter last year.

Shopify Inc. (SHOP.TO) is rising nearly 2%, CGI Inc. (GIB.A.TO) is up 1.2%, Open Text Corporation (OTEX.TO) is gaining 1.6%, Kinaxis Inc. (KXS.TO) is gaining 1.7%, Enghouse Systems (ENGH.TO) is up 1% and Celestica Inc. (CLS.TO) is advancing 1.5%.

The Capped Industrials Index is up 1.1%. Canadian National Railway (CNR.TO), Canadian Pacific Railway (CP.TO) and WSP Global (WSP.TO) are gaining 1.5 to 2%.

The Capped Materials Index is up 0.7%. Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Agnico Eagle Mines (AEM.TO), Wheaton Precious Metals (WPM.TO), First Quantum Minerals (FM.TO) and Kirkland Lake Gold (KL.TO) are up 1 to 2.3%.

Bank stocks are weak. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) are down 0.4 to 0.8%, while Canadian Imperial Bank of Commerce (CM.TO) is down marginally.

Manulife Financial Corp. (MFC.TO) is gaining 3.3% after posting record earnings last year, with earnings swinging to a $593-million profit in the fourth quarter. In the fourth quarter, the company earned 28 cents per diluted share, compared with a loss of 83 cents per share a year earlier.

Precision Drilling Corp. (PD.TO) reported fourth-quarter net loss of C$198.33 million or C$0.68 per share, as compared to net loss of C$47.01 million or C$0.16 per share in the prior-year quarter. The stock is rising nearly 14%.

Bombardier Inc. (BBD.B.TO) shares are rising nearly 16% after the company reported adjusted net income of $149 million for the fourth quarter ended December 2018, as against net loss of $28 million in the year-ago quarter.

Canadian Tire Corp. Ltd. reported net profit of $254.3 million or $3.99 per diluted share for the 13-week period ended December 29. 2018. In the corresponding period last year, the company posted a profit of $275.7 million or $4.10 per diluted share. The stock is declining 3.4%.

Canada Goose Holdings Inc. (GOOS.TO) reported adjusted net income of $0.96 per share for the third quarter, up 65.5% over corresponding quarter in the previous year. The company also announced that it will open a new factory in Quebec and the facility is expected to employ more than 100 people by the end of March and grow to 650 new positions at full capacity by the end of 2020. The stock is down about 9%.

Telus Corporation (T.TO) said it recorded adjusted net income of $409 million or 69 cents per share in the fourth quarter, up from $396 million or 66 cents per share a year earlier. Telus is up marginally.

In commodities, crude oil futures for March are down marginally at $53.84 a barrel.

Gold futures for April are down $1.40, or 0.11%, at $1,313.70 an ounce.

Silver futures for March are declining $0.132, or 0.84%, at $15.520 an ounce, while Copper futures for March are down slightly at $2.7720 per pound.