TSX Ends A Tad Lower On Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad lower on Friday, dragged down by gold stocks with prices of the precious metal falling, even as the nation's economy expanded more than expected and some encouraging economic data from across the border. The U.S. economy expanded at a less robust pace in the fourth quarter than initially believed, but Canada's growth exceeded modest expectations.

Investors also weighed the ongoing geopolitical tensions in Ukraine as the world closely monitors the developments in the Crimea region of the country.

Among other economic news, consumer sentiment in the U.S. saw a modest improvement in February, a Thomson Reuters and the University of Michigan report showed Friday. Meanwhile, a report from MNI Indicators on Friday showed Chicago-area business activity growth to have unexpectedly accelerated in February.

The U.S. economy grew much less than initially indicated in the fourth quarter of 2013, with consumer spending rising at a notably slower than previously estimated rate. U.S. gross domestic product expanded at a 2.4 percent annual rate in the fourth quarter, down sharply from the 3.2 percent growth reported last month and the 4.1 percent logged in the third quarter. Economists expected the pace of GDP growth to be downwardly revised to 2.5 percent.

Meanwhile, Canada's economy grew at a greater-than-expected annualized rate of 2.9 percent in the fourth quarter of 2013 after expanding by 2.7 percent in the third quarter.

The S&P/TSX Composite Index closed Friday at 14,209.59, down 5.15 points or 0.04 percent. The index scaled an intraday high of 14,280.85 and a low of 14,203.36.

The heavyweight Financial Index slipped 0.03 percent with Bank of Nova Scotia (BNS.TO) down 0.36 percent, while Bank of Montreal (BMO.TO) dropped 0.57 percent. National Bank (NA.TO) gathered 0.32 percent, while Royal Bank of Canada (RY.TO) lost 0.61 percent.

However, Canadian Imperial Bank Of Commerce (CM.TO) gained 1.32 percent and Toronto-Dominion Bank (TD.TO) added 0.80 percent, both having reported a better-than-expected first-quarter profit yesterday.

The Global Gold Index slipped 1.14 percent, with gold futures for April delivery, the most actively traded contract, dropping $10.20 or 0.8 percent to close at $1,321.60 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) edging up 0.35 percent. Goldcorp Inc. (G.TO) shed 1.23 percent, while Barrick Gold Corp. (ABX.TO) surrendered 2.04 percent.

The Capped Materials Index surrendered 0.68 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.72 percent.

The Energy Index added 0.78 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, gaining $0.19 or 0.2 percent to close at $102.59 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gained 0.35 percent, while Encana Corp. (ECA.TO, ECA) added 0.62 percent. Cenovus Energy Inc. (CVE.TO) moved up 1.52 percent, while Suncor Energy Inc.(SU.TO) slipped 0.68 percent.

The Diversified Metals & Mining Index gathered 0.79 percent, with Teck Resources Limited (TCK.B.TO) down 1.12 percent, while First Quantum Minerals (FM.TO) slipped 0.79 percent.

The Information Technology Index dropped 1.18 percent, with BlackBerry Limited (BB.TO) plunging 5.39 percent.

The Capped Industrials Index edged up 0.05 percent, with Bombardier Inc. (BBD.B.TO) adding 0.84 percent.

In corporate news, Mattel Inc. (MB.TO) soared 35.58 percent after agreeing to buy Canadian partner Mega Brands Inc. for $460 million, including debt, to expand in building sets like Legos.

In economic news, the Thomson Reuters and the University of Michigan consumer sentiment index for February was upwardly revised to 81.6 from the preliminary reading of81.2. The revision saw the index came in modestly above January's final reading of 81.2 as well as economist estimates of 81.5.

The MNI Indicators' Chicago Business Barometer ticked up to 59.8 in February from 59.6 in January, with a reading above 50 indicating growth in Chicago-area business activity. Economists expected the barometer to drop to a reading of 56.4.

A report from the National Association of Realtors on Friday showed pending home sales index in the U.S. inched up 0.1 percent to 95.0 in January after falling 5.8 percent to a revised 94.9 in December. Economists expected pending sales at 2.3 percent. Despite the modest increase, pending home sales index is well below the reading of 104.4 in January 2013.

German retail sales were up a calendar and seasonally adjusted 2.5 percent in January, representing the biggest increase since February 2007, data from Destatis showed Friday. Economists expected a 1 percent increase for January compared to the 2.1 percent drop in December, which was upwardly revised from the 2.5 percent decline estimated initially.

Eurozone inflation remained unchanged in February, lowering the pressure on the central bank to take action at the policy meeting next week to overcome fears of deflation. Unemployment in the region held steady at an elevated level in January, despite economic recovery taking hold, official data revealed Friday.