TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Thursday, led mostly by some encouraging manufacturing data from China and the U.S., with strong earnings reports from TD Bank and Royal Bank of Canada.

Investors also weighed some mixed economic data from the U.S. with initial claims for unemployment benefits in the climbing more than expected last week, and as well on the minutes of the Federal Reserve's April meeting.

The minutes from the U.S. Federal Reserve's April policy meet indicated a gradual withdrawal of the stimulus program, but showed little clarity as to when the Fed would raise its benchmark interest rate.

The S&P/TSX Composite Index closed Thursday at 14,702.29, up 52.43 points or 0.36 percent. The index scaled an intraday high of 14,742.48 and a low of 14,649.86.

On Wednesday, the index ended higher tracking some positive global cues and on some earnings and merger news.

The Financial Index added 1.11 percent with the Toronto-Dominion Bank (TD.TO) surging 2.60 percent and Royal Bank of Canada (RY.TO) up 1.57 percent, after both banks reports some encouraging earnings reports.

The Toronto-Dominion Bank said its second-quarter net income rose to C$1.988 billion from C$1.717 billion in the same quarter last year. Earnings per share were C$1.04, compared to C$0.89 in the year-ago quarter. Adjusted earnings improved to C$1.09 per share from C$0.95 per share, beating expectations of C$1.02 per share.

Royal Bank of Canada reported a second quarter profit of C$2.201 billion, up C$292 million or 15% from the prior year. Earnings improved to C$1.47 per share from C$1.25 per share in the year ago quarter.

Among other major banks, the Bank of Nova Scotia (BNS.TO) added 0.53 percent, and Bank of Montreal (BMO.TO) jumped 1.38 percent, and the Canadian Imperial Bank of Commerce (CM.TO) gained 1.04 percent. National Bank of Canada (NA.TO) added 0.87 percent.

The Capped Healthcare Index gained 0.65 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 0.44 percent, Catamaran Corp. (CCT.TO) up 0.81 percent, and Extendicare Inc. (EXE.TO) up 0.71 percent.

Crude oil ended lower after some mixed economic data from the U.S. with initial claims for unemployment benefits climbing more than expected last week.

Nevertheless, the Energy Index gained 0.12 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $0.33 or 0.3 percent to close at $103.74 a barrel Thursday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) dropped 1.49 percent, while Canadian Oil Sands Limited (COS.TO) added 1.06 percent. Husky Energy Inc. (HSE.TO) gained 0.99 percent, and Canadian Natural Resources Ltd. (CNQ.TO) added 0.23 percent.

Baytex Energy Corp. (BTE.TO) gained 0.20 percent, while Pacific Rubiales Energy Corp. (PRE.TO) also added 1.78 percent.

Gold futures ended higher after India, the world's second biggest consumer, lifted some of the restrictions on import of the precious metal, with additional support on some fierce fighting in eastern Ukraine.

The Global Gold Index shed 0.21 percent, with gold futures for June delivery gaining $6.90 or 0.5 percent to close at $1,295.00 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 0.36 percent, Osisko Mining Corp. (OSK.TO) slipped 0.25 percent, Barrick Gold Corp. (ABX.TO) down 1.26 percent, and Agnico Eagle Mines Limited (AEM.TO) up 0.31 percent.

The Capped Materials Index dropped 0.17 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 2.20 percent.

The Diversified Metals & Mining Index added 1.30 percent, with Lundin Mining Corp. (LUN.TO) up 1.56 percent, First Quantum Minerals Ltd. (FM.TO) up 1.09 percent, and Teck Resources Limited (TCK.B.TO) up 0.77 percent.

The Information Technology Index dipped 0.19 percent, with BlackBerry Limited (BB.TO) down 0.88 percent, Constellation Software Inc (CSU.TO) up 0.63 percent, and Celestica Inc. (CLS.TO) up 0.64 percent.

Avigilon Corp. (AVO.TO) added 1.93 percent.

The Capped Industrials Index moved up 0.29 percent, although Bombardier Inc. (BBD.B.TO) dropped 1.29 percent and Air Canada (AC.B) gained 3.30 percent. CAE Inc. (CAE.TO) gained 0.67 percent, while Canadian Pacific Railway Limited (CP.TO) added 0.55 percent.

ATS Automation Tooling Systems Inc. (ATA.TO) added 1.37 percent after reporting earnings of 13 cents per share from continuing operations in the fourth quarter, compared to 10 cents per share in the fourth quarter a year ago.

Computer Modelling Group Ltd. (CMG.TO) shares are down 1.45 percent after reporting earnings that rose to $0.71 per share for 2013-14, compared to $0.66 per share last year.

On the economic front, core retail sales in Canada, excluding automobile sales, were down 0.1 percent in March, compared to a revised 0.9 percent increase in February.

In economic news from the U.S., the data from the Labor Department showed initial jobless claims to have climbed to a more than expected 326,000 in the week ended May 17. Economists expected claims to increase to 310,000 from 297,000 in the previous week.

The data released by the National Association of Realtors showed existing home sales in the U.S., rose 1.3 percent to a seasonally adjusted annual rate of 4.65 million in April, from 4.59 million in March. That was slightly lower than an expected climb to 4.69 million.

The Conference Board's index of leading U.S. economic indicators was up for the third consecutive month, rising by 0.4 percent in April following an upwardly revised 1.0 percent increase in March.

Meanwhile, according to the flash purchasing managers index released by Markit, U.S. manufacturing activity improved to a 3-month high in May, with the manufacturing PMI rising to 56.2 compared to the 55.4 in April. The consensus estimate called for an increase to 55.9.