TSX Ends Lower On Weak Data -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a six-day gain to end lower on Thursday, after some weak jobless claims data from the U.S. and the steep fall in crude oil prices weighed on markets. Some sluggish industrial production data from China again renewed worries over economic recovery in the second largest economy in the world.

Some disappointing data out of the U.S. showed initial claims for unemployment benefits rising more than anticipated to a six-week high in the week ended November 8.

In some more tepid economic data, China's industrial production and retail sales growth slowed unexpectedly in October, while fixed investment grew less-than-expected, data from the National Bureau of Statistics showed Thursday.

The benchmark S&P/TSX Composite Index closed Thursday at 14,778.77, down 77.43 points or 0.52 percent. The index scaled a intraday high of 14,890.82 and a low of 14,739.79.

On Wednesday, the index closed higher led by strong buying in gold and mining stocks, even as investors tracked corporate earnings for some direction with all major sectors of the main index ending in positive territory.

Crude oil plummeted to close at a three-year low on increasing concerns of a supply glut despite a more than expected decline in U.S. stockpiles last week as indicated by the U.S. Energy Information Administration's inventory report.

U.S. crude oil inventories dropped by 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 dived 2.90 percent, with U.S. crude oil futures for December delivery plummeting $2.97 or 3.8 percent to close at $74.21 a barrel on the Nymex Thursday.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 1.66 percent, Talisman Energy Inc. (TLM.TO) shed 2.47 percent, Canadian Oil Sands Limited (COS.TO) fell 2.13 percent, Cenovus Energy Inc. (CVE.TO) dived 4.10 percent, Encana Corp. (ECA.TO) dropped 4.13 percent, and Pacific Rubiales Energy Corp. (PRE.TO) shed 3.55 percent.

Canadian Natural Resources Limited (CNQ.TO) fell 2.96 percent, while Enbridge, Inc. (ENB.TO) slipped 0.42 percent.

Gold futures ended higher after the dollar turned lower on some disappointing economic data from the U.S. with initial claims for unemployment benefits rising more than expected last week, even as speculation about U.S. interest rate hikes happening sooner than expected persisted.

The Global Gold Index fell 1.24 percent, with gold for December delivery gaining $2.40 or 0.2 percent to settle at $1,161.50 an ounce on the New York Mercantile Exchange Thursday.

In the gold space, Kinross Gold Corp. (K.TO) added 2.87 percent, Goldcorp Inc. (G.TO) shed 1.75 percent, Barrick Gold Corp. (ABX.TO) fell 1.13 percent, Yamana Gold Inc. (YRI.TO) dropped 3.50 percent, and Eldorado Gold Corp. (ELD.TO) gathered 0.46 percent. Detour Gold Corporation (DGC.TO) fell 0.35 percent.

IAMGOLD Corp. (IMG.TO) plunged 9.22 percent on weak results, reporting a third-quarter net loss of $72.5 million or $0.19 per share, compared to last year's net income of $25.3 million or $0.07 per share last year.

Silver Wheaton Corp. (SLW.TO) gained 0.79 percent, notwithstanding a plunge in its third-quarter net earnings to $4.5 million or $0.01 per share, from $77.06 million or $0.22 per share, last year.

The Capped Materials Index dropped 1.00 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.52 percent.

The Healthcare Index gained 1.28 percent, with Catamaran Corp. (CCT.TO) up 0.09 percent, Valeant Pharmaceuticals Inc. (VRX.TO) up 0.79 percent, and Extendicare Inc. (EXE.TO) adding 3.45 percent.

The heavyweight Financial Index moved up 0.25 percent, as Bank of Nova Scotia (BNS.TO) gained 0.44 percent, Toronto-Dominion Bank (TD.TO) added 0.09 percent, Canadian Imperial Bank of Commerce (CM.TO) moved up 0.73 percent, and Bank of Montreal (BMO.TO) added 0.65 percent. National Bank of Canada (NA.TO) gained 0.42 percent, while Royal Bank of Canada (RY.TO) shed 0.07 percent.

Manulife Financial Corp. (MFC.TO) dropped 0.23 percent, after reporting third-quarter net income of C$1.1 billion or C$0.57 per share, up from last year's C$1.0 billion or C$0.54 per share.

The Diversified Metals & Mining Index dropped 1.22 percent, as First Quantum Minerals Ltd. (FM.TO) fell 1.97 percent, Teck Resources Limited (TCK.B.TO) shed 3.23 percent, and Sherritt International Corp. (S.TO) added 1.88 percent.

The Capped Industrials Index shed 0.60 percent, with Bombardier Inc. (BBD.B.TO) down 0.49 percent and Air Canada (AC) up 2.95 percent.

The Information Technology Index added 2.05 percent with smartphone maker BlackBerry Limited (BB.TO) jumping 7.68 percent, Constellation Software Inc. (CSU.TO) gained 1.01 percent, while Avigilon Corp. (AVO.TO) dropped 1.72 percent.

Open Text Corporation (OTC.TO) dropped 0.47 percent, while DH Corp. (DH.TO) shed 0.42 percent.

CGI Group Inc. (GIB.A.TO) shares gained 2.76 percent after the company reported fourth-quarter net earnings of C$213.7 million or C$0.67 per share, compared to C$141.0 million or C$0.44 per share in the prior year period.

The Telecom Index gained 0.76 percent with Rogers Communications Inc. (RCI.B.TO) up 0.84 percent, TELUS Corp. (T.TO) up 1.15 percent, and BCE Inc. (BCE.TO) up 0.92 percent.

The Consumer Discretionary Index fell 0.12 percent, with Tim Hortons Inc. (THI.TO) down 0.09 percent.

The Consumer Staples Index moved up 0.68 percent, as Saputo Inc. (SAP.TO) gained 1.13 percent, and Metro Inc. (MRU.TO) added 0.65 percent.

On the economic front, data from Statistics Canada's new housing price index rose by less than forecast 0.1 percent in September, after rising 0.3 percent in the preceding month.

In economic news, first-time claims for U.S. unemployment benefits for the week ended November 8, climbed to 290,000, an increase of 12,000 from the previous week's unrevised level of 278,000. Economists expected claims to move up to 280,000. Jobless claims was at its highest level since hitting 295,000 in the week ended September 20.

China's industrial production and retail sales growth slowed unexpectedly in October, while fixed investment grew less-than-expected, data from the National Bureau of Statistics showed Thursday. Industrial production rose 7.7 percent year-over-year in October following the 8 percent growth in September. Economists expected production to rise at the stable rate of 8 percent.

Fixed asset investment grew at its slowest pace since 2001, rising 15.9 percent in the January-October period.

In news from the eurozone, results of the latest survey of Professional Forecasters published in the ECB's monthly bulletin showed that the inflation outlook for next year was slashed to 1 percent from 1.2 percent seen earlier. The projection for this year was lowered to 0.5 percent from 0.7 percent. The growth forecast for next year has been reduced to 1.2 percent from 1.5 percent earlier, and the outlook for this year has been cut to 0.8 percent from 1 percent.