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

(RTTNews) - Canadian stocks surged to end higher Tuesday, on some upbeat GDP data from either side of the border with energy shares forging ahead on higher oil prices.

According to data released by Statistics Canada, Canada's gross domestic product was up by a seasonally adjusted 0.3 percent in November, beating forecasts for a 0.1 percent increase.

U.S. GDP growth was revised up to 5 percent in the third quarter, the quickest pace in eleven years, against forecast for 4.4 percent growth.

Investors largely shrugged off some soft U.S. durable goods and new single-family houses sales data from the U.S.

A report from the Labor Department showed new orders for U.S. manufactured durable goods unexpectedly decreased in November, while another report Commerce Department report showed sales of new single-family houses in the U.S. to have unexpectedly declined in November.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,594.03, up 161.65 points or 1.12 percent. The index scaled an intraday high of 14,597.59 and a low of 14,471.02.

On Monday, the index closed at 14,432.38, down 35.88 points or 0.25 percent, dragged down by weak crude oil prices and profit taking, amid uncertainty about near term outlook for the market after last week's splendid gains.

Crude oil jumped to end sharply higher after the U.S. economy grew more than expected in the third quarter, notwithstanding a strong dollar.

The Energy Index jumped 1.88 percent, with U.S. crude oil futures for February delivery soaring $1.86 or 3.4 percent to close at $57.12 on the Nymex Tuesday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gained 1.97 percent, Suncor Energy Inc. (SU.TO) added 2.49 percent, and Inter Pipeline Ltd. (IPL.TO) gained 3.97 percent.

Pacific Rubiales Energy Corp. (PRE.TO) jumped 6.12 percent, Talisman Energy Inc. (TLM.TO) inched up 0.11 percent, and Cenovus Energy Inc. (CVE.TO) advanced 1.20 percent.

Encana Corp. (ECA.TO) added 1.84 percent, after announcing plans to sell some of its natural gas gathering and compression infrastructure in northeast B.C.'s Montney formation to Veresen Midstream LP for $412 million. Veresen Midstream is a JV between Veresen Inc. (VSN.TO) and investment firm Kohlberg Kravis Roberts & Co. L.P. Veresen Inc. shares soared 14.66 percent.

Northern Blizzard Resources Inc. (NBZ.TO) gained 4.60 percent after revealing a reduction in its capital program for 2015 by 40 percent to C$130 million in response to the significant decline in crude oil prices.

Gold futures ended lower after some upbeat economic news from the U.S. with its economy growing more than expected in the third quarter, and dollar strengthening against a basket of major currencies.

The Global Gold Index dropped 1.07 percent, with gold for February delivery slipping $1.80 or about 0.2 percent to settle at $1,178.00 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 1.63 percent, Agnico Eagle Mines Limited (AEM.TO) fell 0.59 percent, Goldcorp Inc. (G.TO) dropped 1.19 percent, Eldorado Gold Corp. (ELD.TO) shed 1.47 percent, Barrick Gold Corp. (ABX.TO) shed 1.75 percent, and Franco-Nevada Corp. (FNV.TO) edged down 0.07 percent.

The Capped Materials Index moved up 0.13 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.31 percent.

The heavyweight Financial Index gained 1.16 percent, as National Bank of Canada (NA.TO) added 2.22 percent, Toronto-Dominion Bank (TD.TO) advanced 1.32 percent, and Bank of Nova Scotia (BNS.TO) gathered 1.08 percent.

Royal Bank of Canada (RY.TO) added 0.97 percent, while Bank of Montreal (BMO.TO) gained 1.01 percent. Canadian Imperial Bank of Commerce (CM.TO) fell 0.05 percent.

The Healthcare Index shed 0.44 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 2.49 percent, Catamaran Corp. (CCT.TO) gained 2.30 percent, and Extendicare Inc. (EXE.TO) down 1.06 percent.

The Diversified Metals & Mining Index added 2.80 percent, as Teck Resources Limited (TCK.B.TO) gained 4.15 percent, First Quantum Minerals Ltd. (FM.TO) advanced 4.01 percent, and Finning International Inc. (FTT.TO) up 1.50 percent. HudBay Minerals Inc. (HBM.TO) added 3.62 percent, and Lundin Mining Corp. (LUN.TO) moved up 3.29 percent.

The Capped Industrials Index gained 1.52 percent, with Bombardier Inc. (BBD.B.TO) up 1.28 percent.

The Information Technology Index gathered 1.17 percent, with BlackBerry Ltd. (BB.TO) adding 1.21 percent.

The Consumer Staples Index moved up 1.74 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) up 1.47 percent and Cott Corp. (BCB.TO) up 3.07 percent. Loblaw Companies Limited (L.TO) gathered 1.65 percent, while Metro Inc. (MRU.TO) added 1.55 percent.

On the economic front, the Canadian economy grew 0.3 percent in October after a 0.4 percent gain in September, attributed partly to some significant growth in manufacturing, a Statistics Canada report said Tuesday. This compares to analysts expectations of a 0.1 percent growth.

In economic news from the U.S., a Commerce Department report said a final reading on third quarter U.S. GDP showed the economy to have grown 5.0 percent compared to the previously estimated 3.9 percent growth. Economists expected the pace of GDP growth to be upwardly revised to 4.3 percent.

A report from the Labor Department showed new orders for U.S. manufactured durable goods in November dropped 0.7 percent, against an increase of 0.3 percent in the preceding month. Economists expected orders to surge up by 0.3 percent. Excluding orders of transportation equipment, durable goods orders fell by 0.4 percent in November, after edging down by 0.1 percent in October.

A report from Thomson Reuters and the University of Michigan said the consumer sentiment index for December was revised downward to 93.6 from the mid-month reading of 93.8. Economists expected the index to be revised downward to 93.0.

Sales of new single-family houses in the U.S. unexpectedly tumbled 1.6 percent in November to a seasonally adjusted annual rate of 438,000 from the revised October rate of 445,000. Economists expected new home sales to inch up to an annual rate of 460,000 in November from the 458,000 originally reported for the previous month.

Personal income in the U.S. increased 0.4 percent in November following an upwardly revised 0.3 percent increase in October. Economists expected personal income to climb by 0.5 percent compared to the 0.2 percent growth originally reported for the previous month.

Personal spending in the U.S. climbed 0.6 percent in November against economists' expectation of a 0.5 percent increase.

Meanwhile, the International Monetary Fund economists expect global GDP to grow by 0.3 to 0.7 percent in 2015, thanks to lower oil prices.