TSX Ends Lower On Soft U.S. Data -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end a tad lower on Friday, on some soft economic data from the U.S. However, the loss was limited with rising commodity prices providing a boost to the mining, gold and energy sectors.

Most European markets ended positively at the end of the trading week. Investors continue to mull over a large number of financial reports from the region, as well as a slew of U.S. economic reports.

Meanwhile, German lawmakers are expected to approve a four-month extension of Greece's bailout in a parliament vote later today.

Markets in the United States came under pressure with most major averages ending in the red following the release of some disappointing economic data.

The fourth quarter U.S. gross domestic product was revised downward, but still slightly above estimates. Economic growth slowed more than previously estimated in the final three months of 2014, according to a revised report released by the Commerce Department on Friday.

The report said U.S. gross domestic product increased by a downwardly revised 2.2 percent in the fourth quarter compared to the previously reported 2.6 percent growth. The growth represents a notable slowdown from the 5.0 percent jump seen in the third quarter. Despite the downward revision, the pace of GDP growth during the fourth quarter still came in slightly above economist estimates for a 2.1 percent increase.

The Chicago PMI data unexpectedly contracted and dropped below 50. However, consumer sentiment was upwardly revised and pending home sales index climbed.

The benchmark S&P/TSX Composite Index closed Friday at 15,234.34, down 6.82 points or 0.04 percent. The index scaled an intraday high of 15,333.61 and a low of 15,234.34.

On Thursday, the index closed up 12.59 points or 0.08 percent, at 15,241.16, after some strong earnings reports from Canadian Imperial Bank of Commerce and Toronto-Dominion helped the heavyweight financial sector jump.

The heavyweight Financial Index gained 0.37 percent, as Bank of Montreal (BMO.TO) moved up 0.06 percent, Bank of Nova Scotia (BNS.TO) added 0.36 percent, and Royal Bank of Canada (RY.TO) rose 0.31 percent. National Bank of Canada (NA.TO) slipped 0.21 percent, and Canadian Imperial Bank of Commerce (CM.TO) gathered 0.46 percent.

Toronto-Dominion Bank (TD.TO) gained 0.61 percent.

Crude oil climbed after the dollar weakened against a basket of some major currencies and a mixed bag of economic reports with the final U.S. GDP report coming in better than expected . Crude oil futures shed 1.1 percent for the week.

Saudi Arabia and the big oil producers in the OPEC cartel refuse to call an emergency meeting to deal with the recent collapse in oil prices. A top Saudi official said this week he expects global oil demand to rise by year's end.

The Energy Index dropped 0.59 percent with U.S. crude oil futures for April delivery, climbing $1.59 or 3.3 percent to settle at $49.76 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) fell 1.58 percent, Canadian Oil Sands (COS.TO) gained 2.56 percent, and Penn West Petroleum Ltd. (PWT.TO) gathered 2.03 percent.

Canadian Natural Resources Limited (CNQ.TO) declined 1.57 percent, while Crescent Point Energy Corp. (CPG.TO) fell 0.45 percent. Cenovus Energy Inc. (CVE.TO) shed 0.87 percent, while Talisman Energy (TLM.TO) gained 0.41 percent. Encana Corp. (ECA.TO) slipped 0.55 percent.

Gold futures ended ended higher after the dollar trended lower against some major currencies and on some mixed economic data from the U.S., notwithstanding a better-than-expected U.S. economic growth report raising speculation of an interest rate hike from the Federal Reserve mid-year. Gold futures shed 5 percent in February, after having gained 8 percent in January.

The Gold Index added 1.07 percent, with gold for April delivery gaining $3.00 or 0.3 percent to settle at $1,213.10 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Yamana Gold (YRI.TO) gained 0.76 percent and Goldcorp (G.TO) moved up 1.10 percent. IAMGOLD (IMG.TO) gathered 2.69 percent and Barrick Gold (ABX.TO) added 1.82 percent. Eldorado Gold (ELD.TO) jumped 4.19 percent, while Kinross Gold Corp (K.TO) added 1.73 percent.

The Capped Materials Index gained 0.98 percent on higher gold prices, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.58 percent and Agrium Inc. (AGU.TO) rising 0.85 percent.

The Diversified Metals & Mining Index moved up 1.70 percent, as First Quantum Minerals Ltd. (FM.TO) added 0.38 percent and Teck Resources (TCK-B.TO) jumped 3.03 percent.

Sherritt International Corp. (S.TO) gained 1.62 percent, HudBay Minerals (HBM.TO) gathered 4.21 percent, Finning International Inc. (FTT.TO) shed 0.04 percent, and Lundin Mining Corp. (LUN.TO) added 1.87 percent.

The Health Care Index shed 1.27 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 2.28 percent and Catamaran Corp. (CCT.TO) down 3.03 percent.

The Capped Industrials Index dropped 0.50 percent, with Bombardier Inc. (BBD.B.TO) surging 15.84 percent after closing a C$1.1 billion public offering of equity. Air Canada (AC.TO) dropped 1.36 percent.

The Information Technology Index dived 2.07 percent, with BlackBerry Limited (BB.TO) gaining 3.06 percent, Sierra Wireless (SW.TO) shedding 3.75 percent, Constellation Software (CSU.TO) declining 3.44 percent, and Descartes Systems Group Inc. (DSG.TO) surrendering 1.61 percent.

The Capped Telecommunication Index shed 0.31 percent, with BCE slipping 0.13 percent, TELUS Corp. (T.TO) dropping 0.22 percent, Manitoba Telecom Services Inc. (MBT.TO) gaining 0.69 percent, and Rogers Communications Inc. (RCI.B.TO) falling 1.03 percent.

Enerflex (EFX.TO) slipped 0.25 percent, after reporting a fourth-quarter profit of $0.33 a share, compared to $0.14 last year.

Aimia (AIM.TO) plunged 10.45 percent, after reporting fourth quarter earnings of C$0.09 a share, compared to a loss of C$0.74 a share last year.

Theratechnologies (TH.TO) soared 24.79 percent after concluding an agreement with AOP Orphan Pharmaceuticals for the distribution and commercialization of EGRIFTA in several European countries.

On the economic front, consumer sentiment in the U.S. deteriorated less than previously estimated in February, a University of Michigan report said Friday. The final reading on the consumer sentiment index for February came in at 95.4 compared to the preliminary reading of 93.6. This is well above economists' estimates of 94.0 but below the eleven-year high of 98.1 set in January.

Pending home sales in the U.S. rebounded in January, a report from the National Association of Realtors showed Friday, reflecting improved buyer demand. NAR said its pending home sales index climbed 1.7 percent to 104.2 in January after falling 1.5 percent to an upwardly revised 102.5 in December.

Business activity in the Chicago area unexpectedly contracted in February to its lowest level since July of 2009 and the first contraction since April of 2013, a report from MNI Indicators showed Friday. The MNI Chicago business barometer tumbled to 45.8 in February from 59.4 in January, with a reading below 50 indicating a contraction in regional business activity. Economists expected the barometer to decline to a reading of about 58.7.

Germany's consumer prices in February rose unexpectedly from a year ago, after declining for the first time in more than five years in the previous month, preliminary data from Destatis revealed Friday. The consumer price index rose 0.1 percent year-on-year following 0.4 percent fall in January. Economists had forecast a 0.3 percent decline. The January decrease was the first since September 2009.

Germany's import prices declined at a slower-than-expected pace in January, yet logged its worst fall in more than five years, figures from Destatis showed Friday. The import price index fell 4.4 percent year-on-year at the start of the year, faster than December's 3.7 percent decline. Economists had forecast a 4.6 percent fall for the month.

Consumer confidence in the United Kingdom held fast in February, the latest survey from research firm GfK showed on Friday with an index score of +1. That was unchanged from the January reading, although it was shy of expectations for +2.

U.K. house prices grew at the slowest pace in nine months in January, the Land Registry reported Friday. House prices grew 6.7 percent year-on-year in January, the same rate of growth as seen in December. The 6.7 percent increase was the weakest growth since last April, when prices gained 6.4 percent.

France's consumer spending grew for the third straight month in January, defying expectations for a decline, figures from the statistical office INSEE showed Friday. Consumer spending rose 0.6 percent from December, when it grew 1.6 percent, which was revised from 1.5 percent. Economists had predicted a 0.3 percent decline.

Meanwhile, France's producer prices declined at the start of the year, INSEE said Friday. The producer price index for the French market fell 3.3 percent year-on-year in January. On a monthly basis, producer prices dropped 0.9 percent in January, the same rate of decrease as in the previous month.