TSX Rallies To End Moderately Higher -- Canadian Commentary

(RTTNews) - Canadian stocks extended gains for a second straight session to end higher Tuesday, on some mixed economic data from the U.S., even as the escalating tensions in eastern Ukraine limited gains. Investors continued to be cautious, looking ahead to more earnings and economic data due later this week.

Despite concerns about the unrest in Ukraine, weak commodity prices and a mixed batch of economic data from the U.S. and Europe, the market reacted to some upbeat earnings reports from the U.S.

With crude oil prices bouncing back from the day's lows, energy stocks edged higher. Industrial, information technology and healthcare stocks were among the other notable gainers. Financial and telecom stocks also moved up. Gold and mining stocks ended lower, tracking declining bullion prices.

The S&P/TSX Composite Index closed Tuesday at 14,303.92, up 19.49 points or 0.14 percent. The index scaled an intraday high of 14,355.47 and a low of 14,224.85.

Crude oil ended lower on news Libyan ports would soon start shipments, with concerns over some soft global macroeconomic data. Nevertheless, losses were limited as Ukraine continued to slide toward a larger crisis. Investors also await the release of the official weekly inventories data on Wednesday, which is largely expected to show an uptick in supplies.

The Energy Index gained 0.15 percent, with U.S. crude oil futures for May delivery, shedding $0.30 or 0.3 percent to close at $103.75 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.33 percent, while Husky Energy Inc. (HSE.TO) gained 0.40 percent. Canadian Natural Resources Ltd. (CNQ.TO) gained 1.06 percent, while Crescent Point Energy Corp. (CPG.TO) shed 0.25 percent. Meanwhile, Talisman Energy Inc. (TLM.TO) added 1.33 percent.

Encana Corp. (ECA.TO) dropped 1.01 percent, after having filed a preliminary prospectus for an initial public offering of its oil and gas royalty business in Western Canada. As part of a broader restructuring, Encana had pledged to spin off this oil and gas royalty business in Western Canada by the middle of this calendar year.

The Global Gold Index dropped 2.14 percent, with gold futures for June delivery, plunging $27.20 or 2.0 percent to close at $1,300.30 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) dropped 1.10 percent, while Barrick Gold Corp. (ABX.TO) shed 1.26 percent. Goldcorp Inc. (G.TO) surrendered 2.18 percent, while Osisko Mining Corp. (OSK.TO) dropped 2.62 percent.

The Capped Materials Index fell 0.73 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 3.26 percent.

The heavyweight Financial Index gained 0.18 percent with the Toronto-Dominion Bank (TD.TO) up 0.10 percent, Bank of Montreal (BMO.TO) up 0.28 percent, and National Bank of Canada (NA.TO) flat at $44.99 a share. Bank of Nova Scotia (BNS.TO) added 0.42 percent, while Manulife Financial Corp. (MFC.TO) gained 0.45 percent.

The Diversified Metals & Mining Index surrendered 1.31 percent, with Teck Resources Limited (TCK.B.TO) down 2.28 percent, Lundin Mining Corp. (LUN.TO) down 0.56 percent, First Quantum Minerals Ltd. (FM.TO) down 0.29 percent, and Sherritt International Corp. (S.TO) up 0.64 percent.

The Information Technology Index gained 0.58 percent, with BlackBerry Limited (BB.TO) adding 1.66 percent after revealing an unspecified investment in the California-based health care IT start up, NantHealth.

The Capped Industrials Index added 0.16 percent, with Bombardier Inc. (BBD.B.TO) shed 0.49 percent and Air Canada (AC.B) moving up 3.36 percent. Canadian National Railway Company (CNR.TO) gained 0.71 percent, while Canadian Pacific Railway Limited (CP.TO) added 0.37 percent.

Healthcare stocks Catamaran Corporation (CCT.TO) andValeant Pharmaceuticals International, Inc. (VRX.TO) gained 2.27 percent and 2.88 percent, respectively.

Lumenpulse Inc. (LMP.TO) ended flat at $18.35 a share, making their debut. The stock opened sharply higher but gave up gains subsequently.

In corporate news, Gibson Energy Inc. (GEI.TO) slipped 0.86 percent after the company on Monday said it has entered into a letter of intent to acquire Cal-Gas Inc., a retail propane company with operations across Canada.

Onex Corp. (OCX.TO) is up 0.59 percent. According to reports, Onex Corp. in consortium with Cineplex Inc. (CGX.TO) is the leading contender to buy the restaurant chain Dave & Buster's Inc. Shares of Cineplex Inc. are down 0.66 percent.

Sirius XM Canada Holdings Inc. (XSR.TO) dived 6.0 percent after reporting an 8.3 percent rise in net income to $4.4 million for the second quarter of fiscal 2014, up from $4.1 in the previous corresponding quarter.

Cash Store Financial Services Inc. (CSF.TO)has announced that it has filed for creditor protection.

On the economic front, Canadian home sales rose 4.9 percent in March, as compared to the same month last year, according to a report from the Canadian Real Estate Association. However, sales continued to hover below the 10-year average. Home sales were up 1.0 percent, month-on-month, but still remained below the peak recorded in August 2013.

In economic news from the U.S., the Labor Department said consumer prices in the U.S. rose by a slightly more than expected 0.2 percent in March, after inching up by 0.1 percent in each of the previous two months. Economists had been expecting another 0.1 percent increase.

The core consumer price index, which excludes food and energy prices, also rose by 0.2 percent in March after ticking up by 0.1 percent for three straight months. Core prices had been expected to inch up by 0.1 percent once again.

Business activity for New York manufacturers was roughly flat in April, the Federal Reserve Bank of New York said in a report on Tuesday, with the index of regional manufacturing activity showing an unexpected 1.3 percent decrease, from a reading of 5.6 in the previous month. Economists expected the index to climb to 8.0.

According to data released by the National Association of Home Builders, homebuilder confidence in the U.S. has seen a modest improvement, with the NAHB/Wells Fargo Housing Market Index edging up to 47 in April, from a downwardly revised 46 in March. Economists expected the index to climb to a reading of 49 from the 47 originally reported for the previous month.

Meanwhile, Federal Reserve Chair Janet Yellen said at an Atlanta Fed banking conference that the Federal Reserve is actively considering new rules to address risks in short-term wholesale funding markets.

U.K. house prices increased at its fastest pace in nearly four years in February, with its house price index rising 9.1 percent annually in February, following a 6.8 percent gain in January. Inflation was the highest since June 2010 and follows the moderate house price increases experienced since April 2012 and is driven in large part by increases in London.

Investor sentiment in Germany weakened for a fourth straight month in April as the effect of the Ukraine crisis continued to weigh, results of a key survey showed Tuesday. The economic expectations index for Germany dropped to 43.2 from 46.6 in March, the Mannheim-based Centre for European Economic Research said. It was the lowest since August last year. The score was worse than the 45 forecast by economists, but much above its long-term average of 24.6.