TSX Ends Lower On Soft Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Wednesday, after some disappointing economic data with U.S. retail sales for July rising less than expected and China's industrial production also growing at a slower pace in July.

The tense situation in Ukraine and the Middle East, along with some disappointing corporate earnings also weighed on markets. However, losses were limited after the U.S. and European markets trended higher.

Investors also monitored the developments of the Russian convoy of 260 trucks carrying humanitarian aid headed for Ukraine, which is likely to be denied entry by the Ukrainian government.

The developments in Gaza were also in focus, even as the three-day truce in the Strip comes to an end in a few hours.

The S&P/TSX Composite Index closed Wednesday at 15,262.73, down 11.50 points or 0.08 percent. The index scaled a intraday high of 15,309.87 and a low of 15,242.86.

On Tuesday, the index closed higher driven largely by strength in gold and material shares, after energy shares took a hit with crude prices under pressure.

Crude oil ended higher on bargain hunting even as the official crude supply data from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected.

The Energy Index dropped 0.26 percent, with U.S. crude oil futures for September delivery gaining $0.22 or 0.2 percent to close at $97.59 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dipped 0.70 percent, Enbridge Inc. (ENB.TO) gained 0.75 percent, Suncor Energy Inc. (SU.TO) dropped 0.73 percent, Talisman Energy (TLM.TO) shed 1.01 percent, Encana Corp. (ECA.TO) surrendered 0.47 percent, and Cenovus Energy Inc. (CVE.TO) dropped 0.36 percent.

The Healthcare Index jumped 1.56 percent with Valeant Pharmaceuticals Inc. (VRX) up 0.82 percent, Catamaran Corp. (CCT.TO) up 0.80 percent, and Extendicare Inc. (EXE.TO) up 2.90 percent.

The Financial Index slipped 0.04 percent Toronto-Dominion Bank down 0.07 percent, National Bank of Canada (NA.TO) down 0.21 percent, and Bank of Nova Scotia (BNS.TO) up 0.28 percent.

Canadian Imperial Bank Of Commerce (CM.TO) added 1.00 percent, Royal Bank of Canada (RY.TO) gained 0.14 percent, and Bank of Montreal (BMO.TO) dropped 0.09 percent.

Gold futures ended higher after some disappointing U.S. retail sales data for July with China's industrial production also growing at a slower pace in July.

Global Gold Index inched up 0.04 percent, with gold futures for December delivery gaining $3.90 or 0.3 percent to close at $1,314.50 an ounce on the Nymex Wednesday.

Among gold stocks, B2Gold Corp. (BTO.TO) added 0.99 percent, Yamana Gold Inc. (YRI.TO) shed 1.44 percent, Barrick Gold Corp. (ABX.TO) dropped 0.55 percent, Goldcorp Inc. (G.TO) was up 1.56 percent, Kinross Gold Corporation (K.TO) gathered 1.37 percent, Franco-Nevada Corp. (FNV.TO) edged up 0.24 percent, and Detour Gold Corp. (DGC.TO) gained 1.22 percent.

The Capped Materials Index fell 0.23 percent on the back of declining gold mining stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.90 percent.

The Diversified Metals & Mining Index dropped 0.61 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.93 percent, Lundin Mining Corp. (LUN.TO) down 0.71 percent, and Teck Resources Limited (TCK.B.TO) down 0.28 percent.

The Capped Industrials Index shed 0.58 percent, with Bombardier Inc. (BBD.B.TO) down 0.26 percent and Air Canada (AC.B.TO) down 2.94 percent.

The Capped Telecommunications Index dropped 0.21 percent, with Rogers Communications Inc. (RCI.B.TO) shedding 0.23 percent, Manitoba Telecom Services Inc. (MBT.TO) fell 0.03 percent, and BCE Inc. (BCE.TO) up 0.23 percent.

The Information Technology Index added 0.35 percent, with BlackBerry Limited (BB.TO) down 0.68 percent and Avigilon Corp. (AVO.TO) dived 3.13 percent.

The Capped Utilities Index moved up 0.02 percent with Fortis Inc. (FTS.IR.TO) down 1.20 percent.

In the energy sector, Crescent Point Energy Corp. (CPG.TO) shed 0.99 percent after reporting second-quarter net income of C$98.59 million or C$0.24 per share, up from C$72.33 million or C$0.19 per share, last year.

CAE, Inc. (CAE.TO) dropped 1.73 percent after the company reported lower than expected net earnings of C$41.6 million or C$0.16 per share for the first quarter, compared to C$45.4 million or C$0.18 per share in the prior-year quarter.

Onex Corp. (OCX.TO) declined 0.88 percent after reporting second-quarter consolidated net earnings of $39 million, as against a net loss of $718 million in the second quarter of 2013. Results for the quarter include earnings from discontinued operations of $447 million compared to a loss of $93 million in 2013.

Metro Inc. (MRU.TO) fell 2.51 percent after the lukewarm results, with third-quarter net earnings of C$144.5 million, flat with prior year. Net earnings per share from continuing operations was C$1.63 compared to C$1.49 last year.

First Majestic Silver Corp.'s (FR.TO) shares dived 5.20 percent, despite lifting second-quarter net earnings to $7.6 million or $0.06 per basic share, up from $0.2 million and break even per basic share in the same quarter last year.

Hyduke Energy Services Inc. (HYD.TO) ended flat after reporting second-quarter net loss of $1.49 million or $0.061 per share, higher than a net loss of $1.15 million or $0.047 per share in the same quarter last year. The stock is declining more than 5 percent.

In economic news from the U.S., a report from the Commerce Department showed retail sales were virtually unchanged in July, after edging up by 0.2 percent in June. Economists expected another 0.2 percent increase in sales. Excluding a modest drop in auto sales, retail sales inched up by 0.1 percent in July compared to a 0.4 percent increase in the previous month.

A report from the U.S. Commerce Department showed business inventories to have increased 0.4 percent in June, following a 0.5 percent increase in May, in line with economists' estimates.

The Bank of England has downgraded its wage growth estimate and said that any interest rate hike will be only gradual. With inflation likely to remain close to the 2 percent target, interest rate may well stay at historically low levels for sometime.

In Asia, Chinese industrial production in July grew at a slower pace of 9 percent from a year ago. Retail sales too saw a slower growth, rising 12.2 percent in July, after increasing by 12.4 percent in the preceding month.