TSX Rally Again Fizzles Near Record Highs -- Canadian Commentary

(RTTNews) - Canadian stocks are giving up some early gains Wednesday, with investors treading cautiously, looking ahead to the outcome of the U.S. Federal Reserve's two-day monetary policy meeting that concludes later in the day.

Worries about the violence in Iraq and likely disruptions in oil supply and caution ahead of Federal Reserve's rate decision appear to be dragging stock prices down from higher levels.

The benchmark S&P/TSX Composite Index is up 13.65 points or 0.09 percent at 15,069.54, after rising to 15,098.54, its best level since June 18, 2008, and not far away from an all-time intra-day high of 15,154.77 on June 6, 2008.

On Tuesday, the index closed up 15.46 points or 0.10 percent at 15,055.89.

BlackBerry Ltd. (BB.TO) is up more than 4 percent after the company confirmed a deal with Amazon.com to gain access to the latter's Appstore for mobile devices.

CGI Group Inc. (GIB.A.TO) and Descartes Systems Group Inc. (DSG.TO) are the other prominent gainers in the technology space.

FLYHT Aerospace Solutions Ltd. (FLY.V.TO) Wednesday announced that the company and Sierra Nevada Corp. have signed a settlement agreement to renew sales activities and fully settle all outstanding claims between the two parties. The stock is up 1.3 percent.

Chartwell Retirement Residences (CSH.UN.TO) has announced that it has entered into a definitive agreement to sell four U.S. properties comprised of 827 suites located in Alabama, Michigan, Oklahoma and Tennessee for $136.1 million. The stock is up 0.5 percent.

Golden Minerals Co. (AUM.TO) shares are up 4 percent after the company announced that it plans to restart mining at its Velardena Properties located in Durango state, Mexico in July 2014.

Oando Energy Resources Inc. (OER.TO) announced that it received the consent of the Honourable Minister of Petroleum Resources of Nigeria for the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips for a total cash consideration of $1.65 Billion subject to customary adjustments. The shares are not traded yet.

Energy Fuels Inc.(EFR.TO) shares are down more than 1 percent. The company announced the creation of a joint venture that will focus on the development or sale of the company's Copper King gold and copper project in Wyoming. Energy Fuels said it will own 50% of the new venture and the rest will be held by a private investor group.

Gold stocks Silver Wheaton Corp. (SLW.TO), Franco-Nevada Corporation (FNV.TO), Yamana Gold Inc. (YRI.TO), Barrick Gold Corporation (ABX.TO), Agnico Eagle Mines Limited (AEM.TO), Goldcorp Inc. (G.TO) and B2Gold Corp. (BTO.TO) are moving up 1.5 to 3.2 percent.

Diversified metals stocks Teck Resources (TCK.TO), Hudbay Minerals (HBM.TO) and Capstone Mining Corporation (CS.TO) are advancing 1.5 to 2.3 percent.

In the energy sector, Canadian Natural Resources (CNQ.TO), Imperial Oil (IMO.TO) and Talisman Energy (TLM.TO) are advancing 0.8 to 1 percent, while ARC Resources (ARX.TO) is modestly higher.

Healthcare stocks Catamaran Corporation (CTT.TO) and Valeant Pharmaceuticals Inc. (VRX.TO) are down 1.3 percent and 0.5 percent, respectively.

Among big six banks, Toronto-Dominion Bank (TD.TO) is modestly higher and National Bank of Canada (NA.TO) is declining 0.3 percent, while the rest are little changed from their previous closing levels.

In commodities, crude oil futures retreated into negative territory after data from the U.S. Energy Information Administration showed crude oil stockpiles in the U.S. to have decreased by less than expected 579,000 barrels in the week ended June 13.

Crude oil futures for August are down $0.41 or 0.39 percent at $105.46 a barrel.

Natural gas for July is down $0.021 or 0.46 percent at $4.688 per million btu.

Gold futures for August are down $0.90 or 0.07 percent at $1,271.10 an ounce.

Silver for July is up $0.043 or 0.22 percent at $19.775 an ounce. Meanwhile, copper is up $0.005 or 0.17 percent at $3.056 per pound.

In economic news from the U.S., current account deficit rose more than expected to $111.2 billion in the first quarter. Economists expected a deficit of $99.8 billion for the quarter, compared to a deficit of $81.1 billion in the fourth quarter.

Following the conclusion of the 2-day FOMC meeting, the Fed is scheduled to announce its monetary policy decision at 2 pm ET. The central bank is widely expected to hold interest rates unchanged, while it is expected to continue trimming the size of its asset purchase program by another $10 billion.

Also at 2 pm ET, the Fed will release updated forecasts for the economy.