TSX Ends Higher Ahead Of U.S. Fed Meet Outcome - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, led by financial and energy stocks ahead of the U.S. Federal Reserve's policy meet outcome that is widely expected to keep its quantitative easing program unchanged. Investors largely ignored some soft macroeconomic data from the U.S., with consumer confidence in the country tumbling.

With the Fed widely expected to maintain its asset purchase program at the current pace, investors focused on indications regarding future tapering.

In some soft economic data from the U.S., a Conference Board report indicated a substantial deterioration in consumer confidence in October, with the government shutdown weighing on expectations. Separately, a Commerce Department report showed unexpected drop in retail sales due mainly to sharply lower auto sales.

Meanwhile, a Labor Department report indicated a decrease in producer prices in September, with a notable drop in food prices offsetting an increase in energy prices. However, U.S. business inventories rose in line with estimates in August.

The S&P/TSX Composite Index closed Tuesday at 13,440.61, up 68.77 points or 0.51 percent. The index touched an intraday high of 13,443.30 and a low of 13,371.84.

The Diversified Metals & Mining Index shed 0.94 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.57 percent, Osisko Mining Corp. (OSK.TO) down 2.95 percent, and Lundin Mining Corp. (LUN.TO) dropping 1.46 percent. Teck Resources (TCK_B.TO) slipped 0.20 percent.

The Capped Materials Index lost 1.47 percent mostly on gold stocks, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging down 0.06 percent.

The Global Gold Index dived 2.67 percent, with gold futures for December delivery, the most actively traded contract, dropping $6.70 or 0.5 percent to close at $1,345.50 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) plunged 4.04 percent, while Barrick Gold Corp. (ABX.TO) lost 2.08 percent. Kinross Gold Corp. (K.TO) shed 2.17 percent, while Eldorado Gold Corp. (ELD.TO) dropped 3.60 percent.

The Energy Index gained 0.92 percent, although U.S. crude oil futures for December delivery, the most actively traded contract, shed $0.48 or 0.5 percent to close at $98.20 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) added 1.44 percent, while Imperial Oil Limited (IMO.TO) gained 0.48 percent. Canadian Natural Resources Limited (CNQ.TO) gathered 2.81 percent, while Encana Corp. (ECA.TO) slipped 0.21 percent. Talisman Energy Inc. (TLM.TO) gained 2.63 percent

The Financial Index moved up 1.04 percent with Bank of Montreal (BMO.TO) up 1.14 percent, while Manulife Financial Corp. (MFC.TO) gained 1.83 percent. The Bank of Nova Scotia (BNS.TO) gained 1.07 percent, while Toronto-Dominion Bank (TD.TO) improved 1.02 percent. National Bank of Canada (NA.TO) moved up 0.60 percent, while Royal Bank of Canada (RY.TO) gathered 0.65 percent. Canadian Imperial Bank Of Commerce (CM.TO) gained 1.19 percent.

The Information Technology Index slipped 0.21 percent, although smartphone maker BlackBerry Limited (BB.TO) adding 2.57 percent.

The Capped Industrials Index gained 1.20 percent, with Air Canada (AC.B.TO) up 3.19 percent and Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 1.14 percent.

Business data provider Thomson Reuters Corp. (TRI.TO) reported a third-quarter profit that slipped to $271 million or $0.33 per share, from $441 million or $0.53 per share in the same quarter last year. Underlying operating profit for the quarter increased to $548 million from $534 million last year. Adjusted earnings per share were $0.48, flat with last year, ahead of analysts estimates of $0.44 per share.

In economic news from the U.S., a Conference Board report on Tuesday showed U.S. consumer confidence deteriorated in October, largely due to the government shutdown. The consumer confidence index tumbled to 71.2 in October from an upwardly revised 80.2 in September. Economists expected the index to fall to 75.0 from the 79.7 originally reported for the previous month. The index was its lowest level since April.

U.S. retail sales unexpectedly saw a modest drop in September, with auto sales showing a significant decrease, a Commerce Department report showed Tuesday. Retail sales for September edged down by 0.1 percent following a 0.2 percent increase in August. Economists expected retail sales to come in unchanged. The unexpected drop was largely due to a 2.2 percent decrease in motor vehicle and parts dealer sales, which followed a 0.7 percent increase in the previous month.

Business inventories in the U.S. rose in line with estimates in August, a report from the Commerce Department showed Tuesday. Business inventories rose by 0.3 percent in August following a 0.4 percent increase in July. The increase was in line with expectations.

With a notable drop in food prices offsetting an increase in energy prices, producer prices in the U.S. unexpectedly dropped in September, a report from the Labor Department indicated Tuesday. Producer price index edged down by 0.1 percent in September following a 0.3 percent increase in August. Economists expected prices to increase by about 0.2 percent in September.