TSX Ends Higher On Upbeat U.S. Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Friday, after a slew of upbeat economic news from the U.S. with investors largely ignoring some modest economic growth data from the eurozone.

In some upbeat data out of the U.S., retail sales in October rebounded more than anticipated, having reported a modest drop in sales in the previous month.

A Commerce Department report showed U.S. business inventories to have increased in line with economist estimates in September, with business inventories also rising in line with economist estimates in September.

A Labor Department report on Friday showed a notable decrease in U.S. import prices in October, with fuel prices dropping sharply. Meanwhile, consumer sentiment in the U.S. improved much more than anticipated in November, a report from Thomson Reuters and the University of Michigan showed Friday.

The eurozone economy grew at a faster-than-expected pace in the third quarter, with economic some modest recovery seen in Germany and France, while Italian economy contracted once again.

The benchmark S&P/TSX Composite Index closed Friday at 14,843.10, up 64.33 points or 0.44 percent. The index scaled a intraday high of 14,843.10 and a low of 14,748.10.

On Thursday, the index snapped a six-day gain to end lower after some weak jobless claims data from the U.S. and the steep fall in crude oil prices weighed on markets, even as China came out with some sluggish data.

Crude oil rebounded to end sharply higher after having surrendering nearly four percent yesterday, amid hopes the Organization of the Petroleum Exporting Countries will cut its production to help pull back prices.

U.S. crude oil inventories dropped 1.7 million barrels in the week ended November 7, which was well below analysts expectation of a 0.5 million barrels decline. Meanwhile, data from the American Petroleum Institute showed U.S. crude inventories to have declined by 1.5 million barrels in the week ended November 7.

The Energy Index gained 1.17 percent, with U.S. crude oil futures for December delivery jumping $1.61 or 2.2 percent to close at $75.82 a barrel on the Nymex Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.97 percent, Talisman Energy Inc. (TLM.TO) gained 1.42 percent, Canadian Oil Sands Limited (COS.TO) moved up 2.12 percent, Cenovus Energy Inc. (CVE.TO) gained 2.48 percent, Encana Corp. (ECA.TO) gathered 2.38 percent, and Pacific Rubiales Energy Corp. (PRE.TO) fell 1.53 percent.

Canadian Natural Resources Limited (CNQ.TO) fell 0.05 percent, while Enbridge, Inc. (ENB.TO) slipped 0.95 percent.

Gold futures ended sharply higher after the dollar turned lower against a basket of major currencies, notwithstanding some upbeat data from the U.S. with investors mulling over the possibility of U.S. interest rate hikes happening sooner than later.

The Global Gold Index jumped 5.59 percent, with gold for December delivery surging $24.10 or 2.1 percent to settle at $1,185.60 an ounce on the New York Mercantile Exchange Friday.

In the gold space, Kinross Gold Corp. (K.TO) jumped 7.32 percent, Goldcorp Inc. (G.TO) added 5.21 percent, Barrick Gold Corp. (ABX.TO) gained 5.49 percent, Yamana Gold Inc. (YRI.TO) gathered 5.81 percent, and Eldorado Gold Corp. (ELD.TO) surged 7.02 percent. Detour Gold Corp. (DGC.TO) soared 8.56 percent.

IAMGOLD Corp. (IMG.TO) soared 21.32 percent after announcing cost cutting measures, even as the gold miner reported some weak results yesterday.

The Capped Materials Index jumped 2.97 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.13 percent.

The Healthcare Index gained 0.24 percent, with Catamaran Corp. (CCT.TO) shedding 0.42 percent, Valeant Pharmaceuticals Inc. (VRX.TO) up 0.88 percent, and Extendicare Inc. (EXE.TO) also adding 0.29 percent.

The heavyweight Financial Index dipped 0.03 percent, as Bank of Nova Scotia (BNS.TO) gained 0.33 percent, Toronto-Dominion Bank (TD.TO) inched up 0.02 percent, Canadian Imperial Bank of Commerce (CM.TO) dropped 0.13 percent, and Bank of Montreal (BMO.TO) fell 0.10 percent. National Bank of Canada (NA.TO) gained 0.20 percent, while Royal Bank of Canada (RY.TO) added 0.07 percent.

The Diversified Metals & Mining Index gained 2.23 percent, as First Quantum Minerals Ltd. (FM.TO) moved up 2.77 percent, Lundin Mining Corporation (LUN.TO) added 3.27 percent, Teck Resources Limited (TCK.B.TO) gathered 2.26 percent, and Sherritt International Corp. (S.TO) added 1.48 percent.

The Capped Industrials Index shed 0.33 percent, with Bombardier Inc. (BBD.B.TO) down 0.49 percent and Air Canada (AC) up 1.91 percent.

The Information Technology Index fell 0.98 percent with smartphone maker BlackBerry Limited (BB.TO) plunging 8.01 percent, Open Text Corporation (OTC.TO) up 0.84 percent, Constellation Software Inc. (CSU.TO) dropped 0.34 percent, and CGI Group Inc. (GIB.A.TO) shares gaining 0.74 percent.

The Telecom Index gained 0.35 percent with Rogers Communications Inc. (RCI.B.TO) down 0.05 percent, TELUS Corp. (T.TO) up 1.02 percent, and BCE Inc. (BCE.TO) up 0.27 percent.

The Consumer Discretionary Index added 0.06 percent, with Tim Hortons Inc. (THI.TO) down 0.12 percent.

The Consumer Staples Index moved up 1.33 percent, with Saputo Inc. (SAP.TO) up 1.10 percent, and Metro Inc. (MRU.TO) up 1.60 percent.

In economic news from the U.S., a report from the Commerce Department showed retail sales in October to have rebounded more than anticipated, partly attributed to a jump in sales by non-store retailers. U.S. retail sales rose 0.3 percent in October, offsetting the 0.3 percent drop seen in September. Economists expected sales to edge up by 0.2 percent.

Separately, a Commerce Department report showed U.S. business inventories to have increased in line with economist estimates in September, with inventories rising 0.3 percent in after inching up by a downwardly revised 0.1 percent in August. Economists expected inventories to climb by 0.3 percent compared to the 0.2 percent uptick originally reported for the previous month. Manufacturing inventories edged up by 0.2 percent, while retail and wholesale inventories both rose by 0.3 percent.

Consumer sentiment in the U.S. has improved much more than anticipated in November, a report from Thomson Reuters and the University of Michigan showed Friday. A preliminary reading on the consumer sentiment index for November came in at 89.4 compared to the final October reading of 86.9. Economists expected the index to show a more modest increase to 87.5. The consumer sentiment index scaled its highest level since July 2007.

Meanwhile, a Labor Department report on Friday showed a notable decrease in U.S. import prices in October, with fuel prices dropping sharply. The import price index tumbled 1.3 percent in October after falling by a revised 0.6 percent in September. Economists expected import prices to drop by 1.5 percent compared to the 0.5 percent decrease originally reported for the previous month.

The eurozone economy grew at a faster-than-expected pace in the third quarter, helped by economic recovery in Germany and France, while Italy contracted again. Gross domestic product grew a seasonally adjusted 0.2 percent from the second quarter, flash estimates from Eurostat showed Friday. Economists forecast the growth rate to remain unchanged at 0.1 percent.

Among major economies in the eurozone, Germany and France dodged recession, while Italy shrank again taking the economy back into recession.