Canadian Stocks Falter On Global Economic Jitters -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Friday morning with concerns about Ukraine and weak European markets prompting traders to tread cautiously. A disappointing reading on U.S. consumer sentiment is also contributing to the weakness.

However, a report showing a bigger than expected jump in U.S. housing starts is limiting market's losses.

Shares from mining, utilities, energy, consumer staples and information technology sections are lower. Industrial, healthcare telecommunications stocks are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is down 57.10 points or 0.4 percent at 14,531.80.

On Thursday, the index ended down 84.84 points or 0.58 percent at 14,588.89, hurt by lower commodity prices and on some disappointing earnings and economic reports.

In corporate news, Onex Corp. (OCX.TO) reported a first-quarter loss from continuing operations of $67 million, or $0.60 per share, compared to a loss of $339 million, or 2.98 per share in the previous year. The stock is down marginally.

Among big six banks, Canadian Imperial Bank of Commerce (CM.TO) shares are modestly lower. The bank announced on Thursday it has recorded a non-cash goodwill impairment charge of C$420 million relating to its investment in CIBC First Caribbean, for the second quarter ending April 2014. Since the charge is a non-cash item, it will not affect the bank's ongoing operations or capital ratios.

Bank of Nova Scotia (BNS.TO) and Bank of Montreal (BMO.TO) are also modestly lower, while the others are little changed from previous closing levels.

In the diversified metals space, First Quantum Minerals Ltd. (FM.TO), Teck Resources Limited (TCK.B.TO), Turquoise Hill Resources Ltd. (TRQ.TO), Lundin Mining Corporation (LUN.TO), Sherritt International Corporation (S.TO), Capstone Mining Corp. (CS.TO) and Nevsun Resources Ltd. (NSU.TO) are lower by 1 to 2 percent.

Bellatrix Exploration Ltd. (BXE.TO) is declining more than 3.5 percent and Tourmaline Oil Corp. (TOU.TO) is losing over 1.5 percent. Meanwhile, Canadian Natural Resources Limited (CNQ.TO), Husky Energy Inc. (HSE.TO) and ARC Resources Ltd. (ARX.TO) are lower by 0.8 to 1.2 percent.

Among gold stocks, Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Silver Wheaton Corp. (SLW.TO), Franco-Nevada Corporation (FNV.TO) and Agnico Eagle Mines Limited (AEM.TO) are lower by 0.5 to 2 percent, while First Quantum Minerals Ltd. (FM.TO) is down 2.6 percent.

Among shares from utilities section, Canadian Utilities Limited (CU.TO), ATCO Ltd. (ACO.X.TO) and Superior Plus Corp. (SPB.TO) are down 0.5 to 1.2 percent.

In the technology space, Open Text Corporation (OTC.TO), Constellation Software Inc. (CSU.TO), BlackBerry Limited (BB.TO) and DH Corporation (DH.TO) are declining 1 to 2 percent.

Industrial stocks Bombardier Inc. (BBD.B:TO), Stantec Inc. (STN.TO) and WestJet Airlines Ltd. (WJA.TO) are notably higher, while Finning International Inc. (FTT.TO), CAE Inc. (CAE.TO), MacDonald, Dettwiler and Associates Ltd. (MDA.TO) and Progressive Waste Solutions Ltd. (BIN.TO) are losing 1 to 2 percent.

In commodities, crude oil futures for June delivery are up $0.57 or 0.56 percent at $102.07 a barrel.

Natural gas is down $0.033 or 0.73 percent at $4.437 per million btu.

Gold futures for June are up $0.50 or 0.03 percent at $1,294.10 an ounce.

Silver for July delivery is down $0.151 or 0.77 percent at $19.333 an ounce.

Meanwhile, copper is down $0.007 or 0.23 percent at $3.137 per pound.

In the currency market, the Canadian loonie is trading at 1.0885 against the U.S. dollar, down slightly from previous close.

In economic news from the U.S., housing starts surged up by a better than expected 13.2 percent to an annual rate of 1.072 million in April from the revised March estimate of 947,000. Economists had expected housing starts to climb to a rate of 980,000 from the 946,000 originally reported for the previous week.

Building permits, an indicator of future housing demand, also jumped 8.0 percent to an annual rate of 1.080 million in April from the revised March rate of 1.0 million.

Meanwhile, a report from Thomson Reuters and the University of Michigan showed an unexpected deterioration in U.S. consumer sentiment in the month of May, with the index falling to 81.7, from 84.1 in the previous month. Economists expected the index to inch up to a reading of 84.5.