TSX Ends Higher As Energy, Industrial Stocks Gain -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Friday, led by energy, raw material, and industrial sectors, on some upbeat Canadian home sales data, despite some soft economic data from the U.S. with consumer sentiment dropping more than expected.

Markets in the United States ended largely in positive territory, with the S&P 500 crawling to a fresh record high despite some disappointing economic data.

Industrial production in the U.S. declined in April, reflecting a drop in mining and utilities output, a Federal Reserve report showed Friday. A University of Michigan report on Friday showed a substantial drop in U.S. consumer sentiment in May, reflecting decreases in the assessment of current conditions and the economic outlook.

Meanwhile, business conditions for New York manufacturers improved slightly in May, a Federal Reserve Bank of New York report said Friday, although less than expected.

The majority of the European markets ended on a positive note Friday, after ECB President Mario Draghi stated that the stimulus efforts would remain in place until inflation picks up and companies and consumers gain confidence.

The benchmark S&P/TSX Composite Index closed Friday at 15,101.53, up 73.41 points or 0.49 percent. The index scaled an intraday high of 15,104.69 and a low of 14,990.72.

On Thursday, the index closed up 47.40 points or 0.32 percent, at 15,028.12. The index scaled an intraday high of 15,036.82 and a low of 14,983.97.

The Diversified Metals & Mining Index gained 0.44 percent, as First Quantum Minerals Ltd. (FM.TO) moved up 1.08 percent, Teck Resources Limited (TCK.B.TO) fell 0.78 percent, Lundin Mining Corp. (LUN.TO) added 0.16 percent, and Sherritt International Corp. (S.TO) shed 1.44 percent.

Gold futures moved up to end slightly higher on some soft economic data from the U.S. with the dollar continuing to trend lower.

The Gold Index dipped 0.05 percent, after gold for June delivery added $0.10 to settle at $1,225.30 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) shed 0.72 percent, Barrick Gold Corp. (ABX.TO) dipped 0.06 percent, and Yamana Gold Inc. (YRI.TO) gathered 0.21 percent.

Eldorado Gold Corp. (ELD.TO) shed 0.65 percent, while IAMGOLD Corp. (IMG.TO) lost 0.71 percent.

B2Gold (BTO.TO) dropped 1.46 percent, after reporting breakeven results for the first quarter, compared to the loss of $0.04 per share last year.

Agnico Eagle Mines Limited (AEM.TO) slipped 1.13 percent, after agreeing to subscribe for 62.50 million common shares of Belo Sun Mining Corp. (BSX.TO) in a non-brokered private placement at a price of C$0.24 per Belo Sun Share for total consideration of C$15 million.

The Capped Materials Index gained 0.46 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 2.32 percent and Agrium Inc. (AGU.TO) up 0.40 percent.

U.S. crude oil pared much of the losses but still ended lower on supply glut worries with U.S. crude stockpiles still at 80-year highs, even as the dollar weakened. Some soft economic data from the U.S. also weighed on oil prices.

The Energy Index added 0.66 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, dropping $0.19 or 0.3 percent, to settle at $59.69 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.05 percent, while Crescent Point Energy Corp. (CPG.TO) dropped 0.34 percent. Cenovus Energy Inc. (CVE.TO) gained 1.12 percent, Canadian Natural Resources Limited (CNQ.TO) moved up 0.48 percent, and Canadian Oil Sands Limited (COS.TO) gathered 2.61 percent.

Pacific Rubiales Energy Corp. (PRE.TO) advanced 0.67 percent, while Legacy Oil + Gas (LEG.TO) moved up 1.09 percent.

The heavyweight Financial Index shed 0.18 percent, as Bank of Nova Scotia (BNS.TO) dipped 0.03 percent, Toronto-Dominion Bank (TD.TO) dropped 0.25 percent, and Royal Bank of Canada (RY.TO) surrendered 0.18 percent. Canadian Imperial Bank of Commerce (CM.TO) added 0.06 percent.

National Bank of Canada (NA.TO) added 0.04 percent, while Bank of Montreal (BMO.TO) moved up 0.09 percent.

The Capped Health Care Index dipped 0.04 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) gained 1.00 percent, Concordia Healthcare Corp. (CXR.TO) dived 3.87 percent, and Catamaran Corp. (CCT.TO) moved up 0.19 percent.

The Capped Industrials Index added 0.98 percent, as Finning International Inc. (FTT.TO) gathered 0.51 percent, Air Canada (AC.TO) added 1.04 percent, Canadian Pacific Railway Limited (CP.TO) gained 0.84 percent, and Canadian National Railway (CNR.TO) moved up 1.89 percent.

Bombardier Inc. (BBD-A.TO) ended flat at $2.68 per share.

The Information Technology Index moved up 0.89 percent, as Descartes Systems Group Inc. (DSG.TO) fell 0.22 percent, and Sierra Wireless, Inc. (SW.TO) shed 1.27 percent. BlackBerry Inc. (BB.TO) added 0.32 percent.

The Capped Telecommunication Index added 0.54 percent, as Rogers Communications Inc. (RCI.B.TO) moved up 0.37 percent, TELUS Corp. (T.TO) inched up 0.05 percent, and BCE Inc. (BCE.TO) gathered 0.54 percent.

DirectCash Payments Inc. (DCI.TO) plunged 7.01 percent, after its first-quarter net loss widened to C$2.91 million from C$1.69 million in the prior year.

Absolute Software Corp. (ABT.TO) lost 1.82 percent, after reporting first quarter earnings of $1.82 per share, compared to $0.03 per share in the prior year period.

Aimia (AIM.TO) gained 2.08 percent, after posting a first quarter profit of C$0.10 per share.

Webtech Wireless (WEW.TO) surged 23.04 percent, after a Brazilian court ruled in favor of the company.

On the economic front, Canadian existing home sales climbed by 2.3 percent in April, according to a report this morning from the Canadian Real Estate Association.

On the economic front, industrial production in the U.S. fell 0.3 percent in April, matching the upwardly revised decrease in March. Economists expected production to remain unchanged compared to the 0.6 percent drop originally reported for the previous month.

Reflecting decreases in the assessment of current conditions and the economic outlook, a University of Michigan report on Friday showed U.S. consumer sentiment index in May to have tumbled to 88.6 from 95.9 in April, while economists had expected the index to edge down to 95.8.

Business conditions for New York manufacturers improved slightly in May, with the New York Fed's general business conditions index climbing to a positive 3.1 from a negative 1.2 in April. A positive reading indicate growth in regional manufacturing activity. However, economists expected the index to show a somewhat more significant improvement to a reading of positive 5.0.

Elsewhere, U.K. construction output recovered strongly in March, data from the Office for National Statistics showed Friday. Construction output grew 3.9 percent in March from February when it fell 0.3 percent. Economists had forecast a 4 percent growth for March.

Germany's manufacturing employment increased in March, data from Destatis showed Friday. The number of people worked in manufacturing units advanced 1.2 percent or 63,000 from the prior year.