TSX Rises As U.S. Economic Growth Picks Up -- Canadian Commentary

(RTTNews) - Canadian stocks are moving higher Tuesday morning, reacting positively to upbeat GDP data from either side of the border.

According to data released by Statistics Canada, GDP was up by a seasonally adjusted 0.3 percent in November, beating forecasts for a 0.1 percent increase.

U.S. GDP growth was revised up to 5 percent in the third quarter, the quickest pace in eleven years, against forecasts for 4.4 percent growth.

Investors are largely shrugging off a report showing an unexpected drop in U.S. durable goods orders in November.

Energy stocks are up, tracking higher crude oil prices.

The benchmark S&P/TSX Composite Index is up 129.69 points or 0.90 percent at 14,562.07.

On Monday, the index ended down 35.88 points or 0.25 percent at 14,432.38, after scaling an intraday high of 14,547.02 and a low of 13,395.44.

The Diversified Metals & Mining Index is up 3.3 percent. Teck Resources Limited (TCK.B.TO), First Quantum Minerals Ltd. (FM.TO) and HudBay Minerals Inc. (HBM.TO) are up 3 to 5.5 percent.

Lundin Mining Corporation (LUN.TO), Nevsun Resources Ltd. (NSU.TO) and Major Drilling Group International Inc. (MDI.TO) are moving up 1 to 2 percent, while Sherritt International Corporation (S.TO) is declining over 3 percent.

The Capped Materials Index is up 2 percent. Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Silver Wheaton Corp. (SLW.TO) and Agnico Eagle Mines (AEM.TO) are advancing 1.5 to 3 percent.

The Energy Index is up 1.7 percent. Encana Corp. (ECA.TO) is up nearly 2 percent. Encana said it will sell some of its natural gas gathering and compression infrastructure in northeast B.C.'s Montney formation to Veresen Midstream LP for $412 million. Versen Midstream is a JV between Veresen Inc. (VSN.TO) and investment firm Kohlberg Kravis Roberts & Co. L.P. Veresen Inc. shares are rising nearly 11 percent.

Northern Blizzard Resources Inc. (NBZ.TO) shares are up 5.3 percent after the company said it has reduced its capital program for 2015 by 40 percent to C$130 million in response to the significant decline in crude oil prices.

Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO) and ARC Resources (ARX.TO) are up 1 to 2.5 percent.

The Financial Index is up 0.5 percent. Among the big six banks, Canadian Imperial Bank of Commerce (CM.TO) is declining 0.6 percent, while the rest are up in positive territory, gaining 0.5 to 1.2 percent.

The Consumer Staples Index is up 0.75 percent. Cott Corporation (BCB.TO), Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies Limited (L.TO) and Metro Inc. (MRU.TO) are moving up 0.7 to 1.3 percent.

The Healthcare Index is down 1.6 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) is declining over 3 percent, Extendicare Inc. (EXE.TO) is down nearly 1 percent and Catamaran Corporation (CCT.TO) is down 0.4 percent.

The Industrials Index is up 0.7 percent. SNC-Lavalin Group Inc. (SNC.TO) is moving up 1.3 percent, Bombardier Inc. (BBD.TO) is up 1.2 percent and CAE Inc (CAE.TO) is advancing 1.8 percent, while MacDonald, Dettwiler and Associates (MDA.TO) is rising 2.7 percent. Canadian National Railway (CNR.TO) and Bombardier (BBD.B.TO) are up with modest gains.

In commodities, crude oil futures for February delivery are up $0.91 or 1.65 percent at $56.17 a barrel, ahead of weekly supply data.

Natural gas for January is up $0.005 or 0.16 percent at $3.149 per million btu.

Gold futures for February are down $1.70 or 0.16 percent at $1,1,78.10 an ounce.

Silver for March is up $0.094 or 0.60 percent at $15.782 an ounce. Meanwhile, copper is down $0.007 or 0.23 percent at $2.866 per pound.

According to a report from the U.S. Labor Department, new orders for U.S. manufactured durable goods unexpectedly decreased in November, falling by 0.7 percent, against an increase of 0.3 percent in the preceding month. Economists had expected orders to surge up by 0.3 percent. Excluding orders of transportation equipment, durable goods orders fell by 0.4 percent in November, after edging down by 0.1 percent in October.

A report from Thomson Reuters and the University of Michigan said the consumer sentiment index for December was downwardly revised to 93.6 from the mid-month reading of 93.8. Economists had expected the index to be downwardly revised to 93.0.

Meanwhile, the International Monetary Fund economists expect global GDP to grow by 0.3 to 0.7 percent in 2015, thanks to lower oil prices.