Canadian Stocks Are Modestly Higher Despite Weak Data -- Canadian Commentary

(RTTNews) - The Canadian stock market is holding onto modest gains Friday morning, despite the release of a pair of weaker than expected economic reports. Canadian retail sales declined unexpectedly in August and consumer price inflation rose less-than-expected in September.

Energy stocks are among the best performing stocks this morning. Crude oil prices are slightly lower Friday, but are holding around $50 a barrel.

Markets in Europe have been fluctuating between small gains and losses over the course of Friday's session and is currently trading in the red. ECB President Mario Draghi left the door open to more stimulus yesterday and the euro is hovering near a seven-month low against the US dollar in the wake of his dovish remarks.

Markets in the United States are trading slightly to the downside Friday morning following the lackluster performance seen in the previous session. Investors are largely reacting to corporate earnings results, since there was no US economic data this morning.

The benchmark S&P/TSX Composite Index is up 45.83 points or 0.31 percent at 14,893.75.

On Thursday, the index closed up 7.43 points or 0.05 percent, at 14,847.92. The index scaled an intraday high of 14,872.74 and a low of 14,794.52.

The Energy Index is up 0.73 percent. Crude oil prices are lower Friday morning, unable to sustain a recent rally but staying above the crucial $50 a barrel mark. A stronger US dollar and lingering doubts about a deal between OPEC and Russia to curb supplies is weighing on oil prices today.

Encana (ECA.TO) is rising 0.67 percent and Husky Energy (HSE.TO) is gaining 0.82 percent. Cenovus Energy (CVE.TO) is advancing 0.15 percent and Imperial Oil (IMO.TO) is up 0.56 percent. Enbridge (ENB.TO) is increasing 0.28 percent and Suncor Energy (SU.TO) is higher by 1.29 percent. Canadian Natural Resources (CNQ.TO) is climbing 0.62 percent.

The Capped Materials Index is up 0.43 percent. Franco-Nevada (FNV.TO) is rising 0.73 percent and Silver Wheaton (SLW.TO) is increasing 1.15 percent. Agrium (AGU.TO) is climbing 0.55 percent and Potash Corp. of Saskatchewan (POT.TO) is advancing 0.89 percent.

The Capped Information Technology Index is rising 0.36 percent. BlackBerry (BB.TO) is up 0.10 percent.

The Capped Telecommunication Services Index is climbing 0.19 percent. BCE (BCE.TO) is rising 0.17 percent and Rogers Communication (RCI-B.TO) is increasing 0.22 percent. TELUS (T.TO) is also gaining 0.31 percent.

The heavyweight Financial Index is increasing 0.17 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.11 percent and Toronto-Dominion Bank (TD.TO) is climbing 0.32 percent. National Bank of Canada (NA.TO) is rising 0.11 percent.

Royal Bank of Canada (RY.TO) is up 0.31 percent. The company announced that Janice Fukakusa, Chief Administrative Officer and Chief Financial Officer will be retiring effective January 31, 2017.

The Capped Healthcare Index is lower by 0.28 percent. Extendicare (EXE.TO) is down 0.27 percent.

The Gold Index is falling 0.17 percent. Gold prices are flat Friday morning as the US dollar jumped to an 8-month peak versus the euro, weighing on commodities.

Barrick Gold (ABX.TO) is declining 0.49 percent and Kinross Gold (K.TO) is weakening by 0.58 percent. Eldorado Gold (ELD.TO) is decreasing 1.20 percent and Yamana Gold (YRI.TO) is losing 0.58 percent.

The Capped Industrials Index is dipping 0.01 percent. Canadian National Railway (CNR.TO) is falling 0.09 percent and Finning International (FTT.TO) is down 0.59 percent. AutoCanada (ACQ.TO) is surrendering 0.40 percent.

Bombardier (BBD-B.TO) is decreasing 1.12 percent. The company announced a series of actions, including around 7,500 job cuts, as it continues to execute its five-year turnaround plan launched last year. With the actions, the company expects to achieve recurring savings of approximately $300 million by the end of 2018.

Precision Drilling Corp. (PD.TO) reported a third-quarter net loss of C$47 million, or C$0.16 per share, compared to a loss of C$87 million, or C$0.30 per share, in the third quarter of 2015. The stock is climbing 1.30 percent.

Oil giant Royal Dutch Shell announced it has agreed to sell oil and gas properties in Western Canada to Tourmaline Oil Corp.(TOU.TO)for $1.037 billion or C$1.369 billion. Tourmaline is advancing 6.79 percent.

Celestica Inc. (CLS.TO) reported a profit for its third quarter that jumped 97% compared to the same period last year. Shares are surging 9.50 percent. On the economic front, data from Statistics Canada showed that retail sales fell in August, primarily driven by lower sales at motor vehicle and parts dealers, and general merchandise stores.

On a seasonally adjusted basis, retail sales edged down 0.1 percent to C$44.0 billion in August. Economists had expected the sales to rise 0.3 percent. This follows a 0.2 percent drop in June.

Core retail sales, excluding motor vehicle and parts dealers, were flat on month, reversing a 0.3 percent gain seen by economists. The sales had fallen 0.2 percent in June.

Separate data from the same agency showed that Canada's consumer price inflation ticked up 0.1 percent on a unadjusted monthly basis in September. The estimate was slightly down from the 0.2 percent rise expected by economists. This follows a 0.2 percent drop in August.

Core inflation rose 0.2 percent month-over-month in September, matching expectations. The reading was flat in August.

Eurozone consumer confidence improved for a second straight month in October to its highest level in three months, preliminary data from European Commission showed Friday. The flash consumer confidence index climbed to -8 from -8.2 in September. The latest reading was the strongest since July, when the score was -7.9.

U.K. public sector net borrowing, excluding public sector banks, increased unexpectedly in September, figures from the Office for National Statistics showed Friday. The budget deficit rose by GBP 1.3 billion from prior year to GBP 10.6 billion in September. Meanwhile, it was expected to narrow to GBP 8.5 billion.

British households perceived that the value of their home increased in October, though at a slower rate than in the previous month, survey figures from IHS Markit and Knight Frank showed Friday. The Knight Frank/Markit House Price Sentiment Index, or HPSI, dropped to 55.7 in October from 56.9 in September.

In commodities, crude oil futures for November delivery are down 0.15 or 0.30 percent at $50.48 a barrel.

Natural gas for November is down 0.121 or 3.85 percent at $3.02 per million btu.

Gold futures for December are down $0.30 or 0.02 percent at $1,267.20 an ounce.

Silver for December is down $0.039 or 0.22 percent at $17.51 an ounce.