TSX Ends Slightly Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad higher for a fourth straight session on Friday, with investors cautious after a big jump in Canadian inflation. Nonetheless, some encouraging, better than expected new home sales data from the U.S. helped the index remain in positive territory.

Worries over Ukraine and a weak reading on German business confidence also weighed on the market to a lesser extent. Some sluggish commodity prices also contributed to the lackluster market.

Data from Statistics Canada showed Canadian inflation hit the 2 percent mark in April, for the first time since 2012, from 1.5 percent in the previous month. However, core inflation, which is closely watched by the central bank, remained at 1.4 percent in April.

The S&P/TSX Composite Index closed Friday at 14,708.10, up 5.81 points or 0.04 percent. The index scaled an intraday high of 14,713.69 and a low of 14,684.80.

On Thursday, the main index closed higher for a third successive session, due mainly on some positive global cues and some encouraging Canadian earnings news.

The Financial Index dipped 0.01 percent with the Toronto-Dominion Bank (TD.TO) up 0.26 percent and Royal Bank of Canada (RY.TO) down 0.29 percent.

Among other major banks, the Bank of Nova Scotia (BNS.TO) inched up 0.01 percent, and Bank of Montreal (BMO.TO) down 0.03 percent, and the Canadian Imperial Bank of Commerce (CM.TO) gained 0.42 percent. National Bank of Canada (NA.TO) added 0.43 percent.

The Capped Healthcare Index gained 0.50 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 1.76 percent, Catamaran Corp. (CCT.TO) down 0.64 percent, and Extendicare Inc. (EXE.TO) up 0.42 percent.

Crude oil ended higher on some bright prospects of strong demand for oil after some upbeat new home sales data from the U.S..

Nevertheless, the Energy Index gained 0.11 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, adding $0.61 or 0.6 percent to close at $104.35 a barrel Friday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) fell 0.88 percent, while Canadian Oil Sands Limited (COS.TO) also dropped 0.48 percent. Husky Energy Inc. (HSE.TO) gained 0.24 percent, and Canadian Natural Resources Ltd. (CNQ.TO) added 0.68 percent.

Baytex Energy Corp. (BTE.TO) gained 0.55 percent, while Pacific Rubiales Energy Corp. (PRE.TO) also added 0.50 percent.

Gold futures ended lower after some better than expected new home sales data from the U.S., with little support from the greenback which trended higher.

The Global Gold Index shed 0.84 percent, with gold futures for June delivery dropping $3.30 or 0.3 percent to close at $1,291.70 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 0.73 percent, Osisko Mining Corp. (OSK.TO) slipped 0.12 percent, Barrick Gold Corp. (ABX.TO) down 0.72 percent, and Agnico Eagle Mines Limited (AEM.TO) down 1.13 percent.

The Capped Materials Index dropped 0.29 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.10 percent.

The Diversified Metals & Mining Index added 0.39 percent, with Lundin Mining Corp. (LUN.TO) down 0.17 percent, First Quantum Minerals Ltd. (FM.TO) down 0.47 percent, and Teck Resources Limited (TCK.B.TO) up 1.85 percent.

The Information Technology Index gained 0.44 percent, with BlackBerry Limited (BB.TO) down 0.63 percent, Constellation Software Inc (CSU.TO) down 0.31 percent, and Celestica Inc. (CLS.TO) up 0.24 percent. Avigilon Corp. (AVO.TO) dropped 0.50 percent.

The Capped Industrials Index moved up 0.11 percent, although Bombardier Inc. (BBD.B.TO) dropped 2.09 percent and Air Canada (AC.B) gained 1.84 percent.

In economic news from the U.S., a report from the U.S. Commerce Department showed that new home sales jumped by a more than expected 6.4 percent to a seasonally adjusted annual rate of 433,000 in April, from the revised March rate of 407,000. Economists expected new home sales to climb to a rate of 420,000. The revised rate for March represents a substantial upward revision from the 384,000 originally reported, although it still represents a six-month low.

Confidence among German firms deteriorated more-than-expected to a five-month low in May, signaling growth may ease in the second quarter. Germany's economic growth rebounded in the first quarter as initially estimated, driven mostly by domestic demand, a report from Destatis showed Friday. The business confidence index fell to 110.4 in May from 111.2 in April, a monthly survey by Ifo Institute showed Friday. The score was forecast to drop to 110.9.