TSX Rebounds To End Higher On U.S. Data -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded to snap out of a five-day loss to end higher on Friday, lifted by some upbeat economic news with the U.S. gross domestic product rising more than previously estimated in the second quarter. The main index moved higher also on some bargain hunting, with a narrower second quarter loss by technology major BlackBerry aiding sentiment.

In some upbeat data, a U.S. Commerce Department report on Friday showed economic activity in the country to have grown faster than previously estimated in the second quarter of 2014, with the upwardly revised growth matching economist estimates.

Nonetheless, some weak data on eurozone and German consumer sentiment and geopolitical worries amid reports of fresh airstrikes in Syria by the U.S. and its allies are limiting gains.

The S&P/TSX Composite Index closed Friday at 15,026.77, up 133.20 points or 0.89 percent. The index scaled a intraday high of 15,055.82 and a low of 14,821.71.

On Thursday, the index plummeted to end lower for a fifth straight session on heavy selling in resource and financial stocks, amid uncertainty over the global economy with geopolitical concerns over the ongoing unrest in Syria.

Crude oil surged to end higher after some upbeat GDP data from the U.S. amid concerns over supply disruptions from the Middle East with the U.S. and allies continuing airstrikes against IS militants in Iraq and Syria.

The Energy Index jumped 1.48 percent, with U.S. crude oil futures for November delivery gaining $1.01 or 1.1 percent to close at $93.54 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) gained 2.00 percent, Suncor Energy Inc. (SU.TO) added 0.99 percent, Encana Corp. (ECA.TO) moved up 1.46 percent, Talisman Energy Inc. (TLM.TO) inched up 0.30 percent, and Canadian Natural Resources Limited (CNQ.TO) gathered 2.59 percent.

Enbridge Inc. (ENB.TO) gained 1.36 percent, while TransCanada Corp. (TRP.TO) added 0.48 percent.

The Financial Index gained 0.81 percent, with Toronto-Dominion Bank (TD.TO) up 0.98 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.62 percent, Royal Bank of Canada (RY.TO) up 0.83 percent, Bank of Nova Scotia (BNS.TO) up 0.64 percent, and Bank of Montreal (BMO.TO) added 0.87 percent.

National Bank of Canada (NA.TO) added 0.53 percent, while Manulife Financial Corp. (MFC.TO) gained 1.26 percent.

Gold futures ended lower with the dollar strengthening on some upbeat gross domestic product reported by the U.S. with its second quarter numbers rising more than previously estimated.

The Global Gold Index shed 0.87 percent, with gold for December delivery dropped $6.50 or 0.5 percent to settle at $1,215.40 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) slipped 0.53 percent, Yamana Gold Inc. (YRI.TO) dropped 2.11 percent, B2Gold Corp. (BTO.TO) shed 3.39 percent, Eldorado Gold Corp. (ELD.TO) fell 1.15 percent, and Goldcorp Inc. (G.TO) surrendered 0.61 percent.

The Capped Materials Index edged down 0.05 percent on declining gold stocks, although Potash Corp. of Saskatchewan Inc. (POT.TO) gained 0.54 percent.

The Diversified Metals & Mining Index jumped 1.42 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.71 percent, Lundin Mining Corp. (LUN.TO) down 0.35 percent, Teck Resources Limited (TCK.B.TO) up 0.61 percent, and Sherritt International Corp. (S.TO) surrendering 3.75 percent.

The Capped Industrial Index added 1.44 percent, with Bombardier Inc. (BBD.B.TO) adding 3.42 percent. The plane maker said a wholly owned affiliate of Macquarie AirFinance has reached a firm purchase agreement for 40 CS300 jetliners and has taken options on an additional 10 CS300 aircraft.

The Information Technology Index surged 2.00 percent, with smartphone maker BlackBerry Limited (BB.TO) soaring 5.15 percent after after reporting a loss that narrowed from a year ago. BlackBerry posted a net loss of $207 million or $0.39 per share in the second quarter, down from a net loss of $965 million or $1.84 per share in the same quarter last year.

Among other tech stocks, Constellation Software Inc. (CSU.TO) added 2.24 percent and Avigilon Corp. (AVO.TO) moved up 1.41 percent,

The Healthcare Index gained 1.31 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 1.87 percent. Extendicare Inc. (EXE.TO) added 1.11 percent and Catamaran Corporation (CCT.TO) gained 0.83 percent.

The Telecom Index added 0.80 percent with Rogers Communications Inc. (RCI.B.TO) adding 1.40 percent and BCE Inc. (BCE.TO) up 0.99 percent.

The Consumer Discretionary Staples moved up 0.21 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) ending flat, Maple Leaf Foods Inc. (MFI.TO) up 0.75 percent, and Magna International Inc. (MG.TO) up 0.35 percent.

On the economic front, a report from the Commerce Department showed economic activity in the U.S. grew faster than previously estimated in the second quarter of 2014, with the upwardly revised growth matching economist estimates. U.S. GDP in the second quarter rose 4.6 percent compared to the previously reported 4.2 percent growth. This was in line with economists' consensus estimate, and reflects a significant turnaround from the 2.1 percent contraction seen in the first quarter.

According to a report from Thomson Reuters and the University of Michigan, consumer sentiment index for September came in at 84.6, unchanged from the preliminary estimate and above the final August reading of 82.5.

The leading index for Eurozone declined in August, following an increase in July, a Conference Board survey showed Friday. The leading index fell 0.6 percent month-over-month in August, after the 0.3 percent increase in July. The index has remained unchanged in June.

A leading index for China's economy slowed in August but continued to expand, the Conference Board revealed on Friday with a 0.7 percent gain. That follows the 1.2 percent increase in July and the 1.3 percent gain in June.

German consumer sentiment is set to deteriorate in October on continued tensions regarding the geopolitical situation, a survey by market research group GfK revealed Friday. The forward-looking consumer confidence index dropped to 8.3 in October from 8.6 in September. It was forecast to drop marginally to 8.5.