TSX Ends Higher On Fed Stand, Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a sixth straight session on Tuesday, tracking rising global equity markets, driven by rising gold stocks as demand for the precious metal improved with China back in the market after a long New Year holiday break. Investor sentiments trended higher after U.S. Federal Reserve Chairman Janet Yellen indicated continued accommodative monetary policy until the jobs situation improves.

In her first public remarks since taking over the top job at the Fed, Yellen told Congress that she plans to continue with the highly accommodative policies forged under Ben Bernanke. The Fed Chief said it would take a "significant deterioration" in the economic outlook or a risk of deflation to delay its slow exit from bond-buying. The Federal Reserve is currently pumping in $65 billion a month into markets, down from $85 billion in early December.

The S&P/TSX Composite Index closed Tuesday at 13,880.99, up 86.81 points or 0.63 percent. The index scaled an intraday high of 13,926.00 and a low of 13,794.36.

Gold futures moved up for a fifth straight day, to end at a near three-month high, pushing the $1,300 an ounce mark.

The Global Gold Index jumped 3.08 percent, with gold futures for April delivery, the most actively traded contract, jumping $15.10 or 1.2 percent to close at $1,289.80 an ounce Tuesday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) jumped 11.79 percent, while Kinross Gold Corp. (K.TO) gained 4.80 percent. Argonaut Gold Inc. (AR.TO) soared 8.72 percent, while Goldcorp. Inc. (G.TO) added 2.29 percent.

Barrick Gold Corp. (ABX.TO) moved up 0.98percent, while Yamana Gold Inc. (YRI.TO) jumped 4.92 percent. IAMGOLD Corp. (IMG) added 4.49 percent.

The Capped Materials Index gained 1.75 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.49 percent.

U.S. crude oil snapped a five-day gain to end lower after Federal Reserve Chairman Janet Yellen's testimony before the House Financial Services Committee, although energy shares managed modest gains.

The Energy Index gained 0.34 percent, with U.S. crude oil futures for March delivery, the most actively traded contract, slipping $0.12 or 0.1 percent to close at $99.94 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) moved up 0.75 percent, while Encana Corp. (ECA.TO) dropped 0.05 percent. Athabasca Oil Corporation (ATH.TO) slipped 3.41 percent, while Suncor Energy Inc. (SU.TO) shed 0.33 percent.

The heavyweight Financial Index gathered 0.40 percent with Royal Bank of Canada (RY.TO) up 0.20 percent and the Bank of Nova Scotia (BNS.TO) up 0.42 percent. Bank of Montreal (BMO.TO) added 0.27 percent, and Toronto-Dominion Bank (TD.TO) dropped 0.16 percent. Manulife Financial Corp. (MFC.TO) gained 2.30 percent.

The Diversified Metals & Mining Index gained 0.96 percent, with Lundin Mining Corp. (LUN.TO) up 3.50 percent, and First Quantum Minerals (FM.TO) slipped 0.15 percent. Teck Resources Limited (TCK.B.TO) gained 1.20 percent.

The Information Technology Index added 1.14 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 1.37 percent, after its BBM head left the company.

The Capped Industrials Index moved up 0.47 percent, with Bombardier Inc. (BBD.B.TO) dropping 0.95 percent and Air Canada (AC.B.TO) up 0.64 percent.

Longview Oil Corp (LNV.TO) gained 3.56 percent after having received an unsolicited takeover offer from an unidentified public oil and gas company.

Cineplex Inc. (CGX.TO) dropped 1.49 percent after reporting $20.2 million of net income or $0.32 per share, well below estimates of $0.48 per share.

Aviation training company CAE Inc. (CAE, CAE.TO) added 3.53 per share after reporting a third-quarter profit of C$46.1 million or C$0.18 per share, up from C$37.5 million or C$0.14 per share last year.

In economic news, wholesale inventories in the U.S. rose 0.3 percent in December after rising by 0.5 percent in November. Economists expected an increase of 0.5 percent. The modest growth reflects a 1.3 percent increase in durable goods inventories, due partly to a 5.3 percent jump in inventories of computer equipment.

The National Federation of Independent Business's small business optimism index in the U.S. crept higher in January. A gauge of retailer sentiment, the index rose to 94.1 from 93.9 the previous month.

Meanwhile, the Confederation of British Industry expressed concerns about political uncertainty as the nation enters a lengthy election campaign. The business lobby projects 2.6 percent growth this year, up from its November forecast of 2.4 percent, which reflects a stronger-than-expected economic performance at the tail end of 2013.

For 2015, the Confederation estimates 2.5 percent expansion, slightly down from 2.6 percent forecast in November, which are broadly in line with estimates of a wide range of forecasters. Quarter-on-quarter, gross domestic product growth is expected at 0.6 percent this year, and quarterly growth rates of around 0.6 percent to 0.7 percent in 2015.