TSX Ends Higher On Commoditiy Prices -- Canadian Commentary

(RTTNews) - Canadian stocks made gains for a third straight session to end at a one-month high on Friday, amid some mixed jobs reports from Canada and the U.S., supported by strong commodity prices. Investors were already buoyed by the strong assurances made by the European Central Bank on the eurozone economy yesterday.

Markets were in an upbeat mood amid mixed jobs reports from Canada and the U.S.

Canada's unemployment rate unexpectedly dropped to a six-year low in October with increased hiring by retailers and financial entities. According to Statistics Canada, unemployment rate in Canada dropped to 6.5 percent in October, from 6.8 percent in the preceding month. Employment rate was up at 61.6 percent from 61.5 percent in the previous month.

Meanwhile, data from the U.S. Labor Department showed non-farm payroll employment to have risen by 214,000 jobs in October following an upwardly revised increase of 256,000 jobs in September. Economists expected employment to climb by about 235,000 jobs, compared to the addition of 248,000 jobs originally reported for the previous month.

Unemployment rate in the U.S. hit its lowest level since July 2008, dropping down to 5.8 percent in October from 5.9 percent a month earlier.

The uptick in Canadian shares were driven by energy and mining stocks that rallied on a strong rebound in commodity prices.

The benchmark S&P/TSX Composite Index closed Thursday at 14,690.83, up 127.45 points or 0.88 percent. The index scaled a intraday high of 14,712.05 and a low of 14,561.33.

On Thursday, the index ended up 15.12 points or 0.10 percent at 14,563.38, after the European Central Bank indicated further stimulus in the form of asset-backed securities purchase to prop up the eurozone economy if necessary.

Crude prices ended higher as the dollar trended lower after some soft jobs data from the U.S. showed the economy to have created fewer jobs in October than expected, even as unemployment rate declined. Crude prices also reacted sharply to some unconfirmed reports of Russian troops having entered eastern Ukraine in strength.

The Energy Index jumped 2.72 percent, with U.S. crude oil futures for December delivery adding $0.74 or 0.9 percent to close at $78.65 a barrel on the Nymex Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 1.79 percent, Talisman Energy Inc. (TLM.TO) up 4.63 percent, Encana Corp. (ECA.TO) gained 2.09 percent, Cenovus Energy Inc. (CVE.TO) moved up 2.03 percent, and Pacific Rubiales Energy Corp. (PRE.TO) shed 1.40 percent.

Canadian Natural Resources Limited (CNQ.TO) gained 2.84 percent, while Enbridge, Inc. (ENB.TO) moved up 0.85 percent.

Athabasca Oil Corp. (ATH.TO) soared 10.97 percent after narrowing its net loss for the third quarter to $19.9 million, from $30.5 million in the year ago quarter.

Bankers Petroleum Ltd. (BNK.TO) jumped 7.64 percent after reporting third quarter net income of $25.59 million or $0.10 per share, from $19.51 million or $0.08 per share in the year ago quarter.

Gold futures ended sharply higher with the dollar trending lower and on bargain hunting, after some soft jobs data from the U.S. showed the economy to have created fewer jobs in October than expected, despite a decline in unemployment rate.

The Global Gold Index jumped 7.28 percent, with gold for December delivery surging $27.20 or 2.4 percent to settle at $1,169.80 an ounce on the New York Mercantile Exchange Friday.

Kinross Gold Corp. (K.TO) climbed 11.81 percent after reporting a third quarter net loss of $4.3 million, compared to net earnings of $46.9 million in the year ago period. However, adjusted earnings rose to six cents a share.

Among gold stocks, Goldcorp Inc. (G.TO) jumped 4.38 percent, Barrick Gold Corp. (ABX.TO) climbed 6.32 percent, Agnico Eagle Mines Limited (AEM.TO) gathered 5.38 percent, Yamana Gold Inc. (YRI.TO) soared 10.92 percent, Eldorado Gold Corp. (ELD.TO) surged 6.33 percent, and IAMGOLD Corp. (IMG.TO) soared 12.76 percent.

The Capped Materials Index surged 4.69 percent on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.77 percent.

The Healthcare Index plummeted 7.09 percent, with Catamaran Corp. (CCT.TO) down 1.62 percent, and Valeant Pharmaceuticals Inc. (VRX.TO) shedding 2.95 percent.

Extendicare Inc. (EXE.TO) plunged 17.39 percent, after revealing a definitive share purchase agreement to sell substantially all of the company's U.S. business to a group of investors led by Formation Capital, LLC for US$870 million or C$992 million.

The heavyweight Financial Index moved up 0.14 percent, as Bank of Nova Scotia (BNS.TO) gained 0.39 percent, Toronto-Dominion Bank (TD.TO) shed 0.13 percent, Canadian Imperial Bank of Commerce (CM.TO) dipped 0.31 percent, and Bank of Montreal (BMO.TO) dropped 0.32 percent. National Bank of Canada (NA.TO) gained 0.26 percent, and Royal Bank of Canada (RY.TO) down 0.05 percent.

The Diversified Metals & Mining Index soared 6.58 percent, as First Quantum Minerals Ltd. (FM.TO) up 7.41 percent and Teck Resources Limited (TCK.B.TO) surged 8.24 percent.

The Capped Industrials Index edged down 0.09 percent, with Bombardier Inc. (BBD.B.TO) up 2.36 percent.

The Information Technology Index slipped 0.16 percent with smartphone maker BlackBerry Limited (BB.TO) adding 1.62 percent and Constellation Software Inc. (CSU.TO) down 1.66 percent. Avigilon Corp. (AVO.TO) fell 1.46 percent.

The Telecom Index dropped 0.24 percent with Rogers Communications Inc. (RCI.B.TO) shedding 1.01 percent, TELUS Corp. (T.TO) up 0.27 percent, and BCE Inc. (BCE.TO) gained 0.14 percent.

The Consumer Discretionary Index declined 0.91 percent, with Tim Hortons Inc. (THI.TO) up 0.91 percent.

Fortis Inc. (FTS.TO) gained 0.86 percent, after reporting posted third-quarter net earnings of C$14 million or C$0.06 per share, compared to C$48 million or C$0.23 per share in the prior year period.

Cardiome Pharma Corp. (COM.TO) dropped 1.09 percentage reported a net loss of $4.4 million or $0.26 per common share for the third quarter, compared to a net loss of $3.6 million or $0.29 per common share in the year ago quarter.

GMP Capital Inc. (GMP.TO) added 0.32 percent reporting net income of $6.1 million or $0.05 per share for the third quarter, against net loss of $0.5 million or $0.01 per share in third quarter 2013.

Emera Inc. (EMA.TO) dropped 0.77 percent after reporting third-quarter net income of C$28.2 million or C$0.20 per basic share, compared to C$28.8 million or C$0.22 per basic share, prior year.

In economic news, employment in Canada improved by 43,100 in October, with the unemployment rate dropping to 6.5 percent from 6.8 percent, a report from Statistics Canada showed. Analysts expected unemployment to rise to 6.9 percent with 5,000 job losses.

In economic news from the U.S., a report from the Labor Department on Friday showed weaker than expected U.S. job growth in October, with unemployment rate still dropping to a new six-year low. The non-farm payroll employment rose by 214,000 jobs in October compared to economist estimates for an increase of about 235,000 jobs.

From the eurozone, industrial production in both Germany and France rebounded in September, although the pace of recovery continued to remain weak.

Industrial production in Germany expanded 1.4 percent in September from a 3.1 percent drop in August, Destatis reported Friday. Economists had forecast a 2 percent rise for September.

France's overall industrial production remained flat month-over-month in September, in contrast to economists' expectations for a 0.2 percent drop and a 0.2 percent fall posted in August.

A leading index for Japan increased at a faster rate in September, results of a survey by the Conference Board showed Friday. The Conference Board's leading economic index, a measure of future economic conditions, increased 0.3 percent month-over-month in September, faster than the 0.1 percent rise in August. In July, the index had decreased 0.9 percent.