TSX Ends Higher On Gold Energy Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks moved up for an eighth straight session to end higher on Tuesday, driven by rising bullion prices with energy and material stocks after some upbeat U.S. wholesale sales and inventories data. The uptick was somewhat tempered by an acceleration in China's inflation.

Wholesale inventories in the U.S. increased much more than expected in April, partly due to some continued growth in inventories of non-durable goods. Meanwhile, China's inflation accelerated more than expected to a level last seen in January on higher food prices, while producer prices declined at a slower pace for the second month in May.

The S&P/TSX Composite Index closed Friday at 14,904.38, up 33.17 points or 0.22 percent. The index scaled an intraday high of 14,909.31 and a low of 14,858.95. The index is at its highest since June 19, 2008.

On Monday, the main index ended higher, its best level since 2008, when it hit record highs above 15,000.

The index was led by gold stocks, tracking higher bullion prices with energy stocks are turning in a mixed performance.

Crude oil is higher ahead of Wednesday's OPEC meeting in Vienna, with investors looking ahead to the American Petroleum Institute's weekly oil report due later in the day and the official inventory data from EIA on Wednesday.

The Energy Index added 0.30 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dipping $0.06 to close at $104.35 a barrel Tuesday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) gained 0.71 percent, while Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.13 percent. Talisman Energy Inc. (TLM.TO) slipped 0.63 percent, while Suncor Energy Inc. (SU.TO) gained 0.60 percent.

The Financial Index edged up 0.02 percent with Royal Bank of Canada (RY.TO) edging down 0.01 percent, Bank of Montreal (BMO.TO) adding 0.59 percent, Toronto-Dominion Bank slipped 0.45 percent, Bank of Nova Scotia gathered 0.17 percent, and the Canadian Imperial Bank of Commerce (CM.TO) edging down 0.01 percent.

The Capped Healthcare Index dropped 0.25 percent with Catamaran Corp. (CCT.TO) slipping 0.52 percent and Extendicare Inc. (EXE.TO) gained 0.54 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 0.91 percent after Allergan Inc.'s (AGN) board said a sweetened takeover bid from Valeant and Pershing Square was inadequate.

The Global Gold Index jumped 2.21 percent, with gold futures for August delivery moved up $6.20 or 0.5 percent to close at $1,260.10 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 2.72 percent, Osisko Mining Corp. (OSK.TO) gained 1.46 percent, and Barrick Gold Corp. (ABX.TO) was up 1.72 percent.

The Capped Materials Index gained 1.67 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 1.57 percent.

The Diversified Metals & Mining Index added 0.46 percent, with Lundin Mining Corp. (LUN.TO) down 0.70 percent, First Quantum Minerals Ltd. (FM.TO) down 0.01 percent, and Teck Resources Limited (TCK.B.TO) up 0.68 percent.

The Information Technology Index dropped 0.27 percent, with BlackBerry Limited (BB.TO) down 0.81 percent, and Celestica Inc. (CLS.TO) up 0.92 percent.

The Capped Industrials Index added 0.14 percent, with Bombardier Inc. (BBD.B.TO) adding 1.58 percent and Air Canada (AC.B) surging 4.96 percent.

Seabridge Gold Inc. (SEA.TO) jumped 8.59 percent after announcing the commencement of exploration drilling at its KSM Project in Northwestern British Columbia, Canada.

On the economic front, Chinese inflation rose to a 5-month high of 2.5 percent in May, but still below the government's target of 3.5 percent. Inflation was pushed up largely by rising food inflation with food prices rising 4.1 percent, while non-food prices gained only 1.7 percent in May.

In economic news from the U.S., a report from the Labor Department showed wholesale inventories to have increased by a more than expected 1.1 percent in April, matching the increase seen in the previous month. Economists expected inventories to increase by about 0.5 percent.

Additionally, the Commerce Department said wholesale sales increased by 1.3 percent in April after jumping by 1.6 percent in March.

In Europe, U.K. industrial production expanded notably in April, a sign the sector has started the second quarter on a strong footing. Industrial output gained 0.4 percent in April from March, when it grew by a revised 0.1 percent, the Office for National Statistics said Tuesday. This was the third consecutive rise and matched economists' expectations.