TSX Ends Higher On Upbeat Data - Canadian Commentary

(RTTNews) - Canadian stocks moved up for a third straight session Thursday, to end at a three-month high, led by resource and financial stocks. Contributing to the uptick was BlackBerry leading the information tech index higher on news reports of a possible sale of the company. A slew of upbeat economic data out of the U.S. was enough catalyst for the main index to soar, notwithstanding investor concerns over the possibility of military action against Syria, led by the U.S.

U.S. President Barack Obama continued to make efforts at mobilizing international support for his proposed military strike against Syria at the ongoing G20 summit meeting underway at St. Petersburg in Russia. Meanwhile, the Senate Foreign Relations Committee approved a resolution favoring Obama's proposal for a military strike against Syria.

In some encouraging economic news, the ADP said private sector employment in the U.S. increased, while first-time claims for U.S. unemployment benefits fell more than expected last week. U.S. labor productivity recorded a bigger than expected upward revision in the second quarter, while activity in the U.S. service sector unexpectedly expanded at a faster rate in August, with the index at a record high.

Meanwhile, most European shares ended higher after the European Central Bank and the Bank of England maintained their respective interest rates.

The S&P/TSX Composite Index closed Thursday at 12,845.06, up 87.25 points or 0.68 percent. The index touched an intraday high of 12,851.74 and a low of 12,757.81.

The Information Technology Index added 1.63 percent, with BlackBerry Limited (BB.TO) adding 2.84 percent after the Wall Street Journal citing people familiar with the matter, said the smartphone maker hopes a fast auction which could end up with the sale of the company as soon as November.

The Diversified Metals & Mining Index moved up 0.61 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.23 percent, Osisko Mining Corp. (OSK.TO) down 4.27 percent, and Teck Resources Limited (TCK.B.TO) up 0.22 percent. Lundin Mining Corp. (LUN.TO) gathered 0.43 percent.

The Capped Materials Index dipped 1.63 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 0.64 percent.

The Global Gold Index dived 3.18 percent, with gold futures for December delivery dropping $17.00 or 1.2 percent to close at $1,373.00 an ounce Thursday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 2.21 percent, while Yamana Gold Inc. (YRI.TO) fell 3.98 percent. Kinross Gold Corp. (K.TO) lost 2.39 percent, while B2Gold Corp. (BTO.TO) plunged 5.23 percent. Goldcorp Inc. (G.TO) dropped 3.24 percent, with IAMGOLD Corp. (IMG.TO) surrendering 3.91 percent.

Latest data from the Energy Information Administration showed U.S. crude oil inventories dropped 1.80 million barrels and gasoline stocks shed a similar 1.80 million barrels in the week ended August 30. Analysts expected crude oil inventories to ease 0.20 million barrels and gasoline stocks to shed 0.60 million barrels last week.

The Energy Index added 1.26 percent, with U.S. crude oil futures for October delivery gained $1.14 or 1.1 percent to close at $108.37 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) moved up 0.12 percent, Talisman Energy Inc. (TLM.TO) added 4.37 percent, and Suncor Energy Inc.(SU.TO) gained 1.20 percent.

The Financial Index added 1.37 percent with Royal Bank of Canada (RY.TO) gaining 1.65 percent and Bank of Montreal (BMO.TO) up 1.14 percent. Manulife Financial Corp. (MFC.TO) added 1.59 percent, while National Bank of Canada (NA.TO) gathered 0.69 percent. Asset management company Senvest Capital Inc. (SEC.TO) jumped 6.25 percent.

The Capped Industrials Index gained 1.29 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) surging 5.51 percent.

Louisiana-Pacific Corp. (LPX) announced that it would acquire Ainsworth Lumber Co. Ltd. (ANS.TO) for about $ 1billion, which equates to C$3.76 per Ainsworth common share. Ainsworth shares jumped over 33.33 percent.

Wood-based panels Norbord Inc. (NBD.TO) jumped 10.79 percent on analysts' buy recommendations.

In economic news from the U.S., the ADP said private sector employment increased by 176,000 jobs in August compared to a downwardly revised increase of 198,000 jobs in July. Economists had been expecting the private sector to add about 180,000 jobs compared to the addition of 200,000 jobs originally reported for the previous month.

Meanwhile, a report from the U.S. Labor Department revealed that initial jobless claims dropped to 323,000 in the weekended August 31, a decrease of 9,000 from the previous week's revised figure of 332,000. Economists had been expecting initial jobless claims to edge down to 330,000 from the 331,000 originally reported for the previous week.

Separately, the U.S. Commerce Department said factory orders fell by 2.4 percent in July following a revised 1.6 percent increase in June. Economists had expected orders to decrease by about 3.4 percent compared to the 1.5 percent increase originally reported for the previous month.

With activity in the U.S. service sector unexpectedly expanding at a faster rate in August, the Institute for Supply Management's report on Thursday showed the index of activity in the sector at a record high. The ISM non-manufacturing index climbed to 58.6 in August from 56.0 in July, with a reading above 50 indicating growth in the service sector. Economists expected the non-manufacturing index to dip to a reading of 55.0. The index was at the highest since its inception in January 2008.

Meanwhile, the U.S. Labor Department said productivity increased by a revised 2.3 percent in the second quarter compared to the previously reported 0.9 percent growth. Economists expected productivity to increase by about 1.8 percent.

From the eurozone, new orders in the German manufacturing sector decreased in July after recording strong growth in the previous month, preliminary estimates released by the Federal Ministry of Economics and Technology showed. New orders received by goods producers dropped a seasonally adjusted 2.7 percent sequentially in July, reversing the revised 5 percent increase recorded in June. Economists had forecast a slower decrease of 1 percent for July, following the previous month's originally reported 3.6 percent gain.

The European Central Bank on Thursday left its interest rates unchanged for the fourth successive month in September.

Elsewhere, the Bank of England retained the asset purchase facility at GBP 375 billion and interest rate at a record low 0.50 percent.