Canadian Stocks Struggling To Build On Friday's Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks are quite sluggish Monday morning, with investors reluctant to snap up equities amid global economic jitters.

The mood is cautious with investors looking ahead to China's industrial production and GDP data, due tomorrow.

A disappointing earnings report from U.S. technology major IBM and persisting worries about eurozone economy are weighing on the market.

However, data from Statistics Canada showing a 0.2 percent increase in Canadian wholesale sales in August, against a revised 0.2 percent decline in July, is aiding sentiment a bit.

Energy stocks are mostly lower, tracking falling crude oil prices. Gold stocks are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is up 16.47 points or 0.12 percent at 14,244.15. Earlier, after declining to a low of 14,180.10, the index had advanced to 14,268.12.

On Friday, the index closed up 174.71 points or 1.24 percent at 14,227.68, after scaling a intraday high of 14,297.17 and a low of 13,142.04.

The Healthcare index is up 1.4 percent, with Valeant Pharmaceuticals Inc (VRX.TO) gaining 4.2 percent after reporting third quarter net income of $2.11 per share, against $1.43 per share in the comparable quarter last year.

Catamaran Corporation (CCT.TO) is advancing over 0.5 percent, while Extendicare Inc. (EXE.TO) is declining 0.4 percent.

The Telecommunications Index is up 1.4 percent. Rogers Communications Inc. (RCI.B.TO) is rising 3.3 percent, BCE Inc. (BCE.TO) is up 1 percent and TELUS Corporation (T.TO) is adding 0.75 percent.

The Energy index is down nearly 1 percent. Canadian Natural Resources Limited (CNQ.TO), Suncor Energy Inc. (SU,TO), Encana Corporation (ECA.TO) and Canadian Oil Sands Limited (COS.TO) are lower by 0.6 to 1.2 percent, while Husky Energy Inc. (HSE.TO) and Tourmaline Oil Corp. (TOU.TO) are declining by over 1.5 percent.

Pacific Rubiales Energy (PRE.TO) is moving up 3.2 percent, Spartan Energy (SPE.TO) is rising 1.6 percent, Talisman Energy (TLM.TO) is advancing 1 percent and Athabasca oil Corporation (ATH.TO) is adding 0.7 percent.

The Diversified Metals & Mining Index is down 0.27 percent. Capstone Mining Corporation (CS.TO) is down nearly 2 percent, Teck Resources (TCK.B.TO) is lower by 1.3 percent, Nevsun Resources (NSU.TO) is down 1 percent and Lundin Mining Resources (LUN.TO) is declining 0.7 percent.

Meanwhile, First Quantum Minerals (FM.TO) is moving up 1.3 percent and Sherritt International Corporation (S.TO) is up 0.75 percent.

The Capped Materials Index is up 0.55 percent, with Agnico Eagle Mines (AEM.To) rising nearly 4 percent. Franco-Nevada Corporation (FNV.TO), Barrick Gold Corporation (ABX.TO), Goldcorp Inc. (G.TO) and Silver Wheaton Corp. (SLW.TO) are up 0.4 to 1 percent.

The Financial Index is up 0.2 percent. Among big six banks, Bank of Montreal (BMO.TO) is up 0.5 percent, Royal Bank of Canada (RY.TO), National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CM.TO) are up 0.3 to 0.5 percent, while Toronto-Dominion Bank (TD.TO) and Bank of Nova Scotia (BNS.TO) are modestly lower.

The Consumer Staples Index is up 0.85 percent. Metro Inc. (MRU.TO) and Maple Leaf Foods Inc. (MFI.TO) are higher by over 1.5 percent. Cott Corporation (BCB.TO), Alimentation Couche-Tard Inc. (ATD.B.TO),George Weston Limited (WN.TO), Empire Company Limited (EMP.A.TO) and Jean Coutu Group (PJC) Inc. (PJC.A.TO) are up 0.6 to 1.2 percent.

In the technology space, CGI Group Inc. (GIB.A.TO) is declining over 3.5 percent and Descartes Systems Group Inc. (DSG.TO) is down 1 percent,

BlackBerry (BB.TO) is rising more than 5.5 percent and Avigilon Corporation (AVO.TO) is gaining nearly 1 percent.

In the industrial space, Canadian Pacific Railway Limited (CP.TO) announced Monday that exploratory conversations held with CSX Corp. (CSX) about a possible business combination that would improve customer service, promote competition and alleviate congestion in North America, have ended. The stock is lower by about 0.5 percent.

Air Canada (AC.B.TO) is moving up nearly 3.5 percent and Bombardier (BBD.TO) is advancing 0.6 percent.

Primary Energy Recycling Corp. (PRI.TO) shares are rising over 25 percent after the company said a newly-formed company owned by a consortium led by Fortistar LLC, will acquire all of the outstanding common shares of Primary Energy for cash at a price of US$5.40 per Share.

In commodities, crude oil futures for November are down $1.08 or 1.3 percent at $81.67 a barrel.

Natural gas for November is down $0.090 or 2.3 percent at $3.680 per million btu.

Gold futures for December are up $5.10 or 0.41 percent at $1,244.10 an ounce.

Silver for December is up $0.014 or 0.10 percent at $17.345 an ounce. Meanwhile, copper is down $0.032 or 1.07 percent at $2.972 per pound.

In economic news from eurozone, the Bundesbank is downbeat about the German economic outlook. In its monthly report, Bundesbank said the economic outlook should be either on the same level of the second quarter or slightly better than the prior quarter. The economy had contracted 0.2 percent in the second quarter.