Canadian Stocks Are Falling After Long Holiday Weekend -- Canadian Commentary

(RTTNews) - The Canadian stock market is pulling back in early trade Tuesday, after returning to action following a 4-day weekend for the Christmas and Boxing Day holidays. Gold and mining stocks are among the weakest performers this morning, despite modest gains in commodity prices. The healthcare sector is also under pressure after Valeant's CEO has taken a medical leave due to illness.

Markets in Europe are climbing Tuesday, following Monday's weak performance. The FTSE has returned to action following the Boxing Day holiday. Investor sentiment has received a boost today from the rebound in crude oil prices and the gains in China, which was under pressure yesterday.

Markets in the United States are also gaining ground in early trade, as they attempt to rebound from Monday's modest decline. Many traders are likely to remain on the sidelines, however, with the upcoming New Year's Day holiday keeping trading activity relatively subdued.

Home prices in major U.S. metropolitan areas rose by more than expected in the month of October, according to a report released by Standard & Poor's on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index climbed 0.8 percent in October after rising by a revised 0.5 percent in September.

Economists had expected the index to rise by 0.6 percent, which would have matched the increase originally reported for the previous month.

After reporting a moderate decrease in consumer confidence in the previous month, the Conference Board released a report on Tuesday showing that its U.S. consumer confidence index rose by more than expected in the month of December.

The Conference Board said its consumer confidence index climbed to 96.5 in December from an upwardly revised 92.6 in November. Economists had expected the consumer confidence index to rise to 93.5 from the 90.4 originally reported for the previous month.

The benchmark S&P/TSX Composite Index is down 94.71 points or 0.71 percent at 13,215.09.

On Thursday, the index closed up 24.89 points or 0.19 percent, at 13,309.82. The index scaled an intraday high of 13,344.18 and a low of 13,280.28.

The Gold Index is falling 3.08 percent. Gold prices are flat Tuesday morning, poised to finish 2015 near their lowest level since 2009.

Barrick Gold (ABX.TO) is declining 3.50 percent and Eldorado Gold (ELD.TO) is falling 4.69 percent. Royal Gold (RGL.TO) is losing 2.61 percent and IAMGOLD (IMG.TO) is surrendering 3.40 percent. Yamana Gold (YRI.TO) is lower by 3.64 percent and Kinross Gold (K.TO) is weakening by 4.43 percent. Goldcorp (G.TO) is decreasing 3.82 percent and B2Gold (BTO.TO) is down 2.68 percent.

The Capped Materials Index is also down 2.27 percent. Franco-Nevada (FNV.TO) is falling 3.30 percent and Agnico Eagle Mines (AEM.TO) is down 1.62 percent. Silver Wheaton (SLW.TO) is weakening by 3.63 percent and Agrium (AGU.TO) is losing 1.85 percent. Potash Corp. of Saskatchewan (POT.TO) is decreasing 1.28 percent

The Diversified Metal and Mining Index is declining 2.51 percent. First Quantum Minerals (FM.TO) is falling 5.51 percent and HudBay Minerals (HBM.TO) is losing 3.32 percent. Lundin Mining (LUN.TO) is decreasing 3.44 percent and Capstone Mining (CS.TO) is surrendering 4.26 percent.

The Capped Health Care Index is dropping 2.56 percent. Valeant Pharmaceuticals International (VRX.TO) is sinking 11.32 percent. The company announced yesterday that its Chairman and CEO Michael Pearson will be on a medical leave of absence. Valeant confirmed last week that Pearson had recently been hospitalized and was being treated for a severe case of pneumonia.

The Energy Index is decreasing 0.67 percent. Crude oil futures are recovering Tuesday morning in quiet trade, following yesterday's weak performance.

Cenovus Energy (CVE.TO) is declining 1.11 percent and Suncor Energy (SU.TO) is down 0.65 percent. Husky Energy (HSE.TO) is weakening by 0.81 percent and Enbridge (ENB.TO) is losing 0.19 percent.

Canadian Oil Sands (COS.TO) is falling 1.98 percent. The company has sent a letter to its shareholders, urging them to reject the takeover offer from Suncor Energy. The company referred to Suncor's bid as " undervalued and opportunistic."

The Capped Information Technology Index is up 0.68 percent. BlackBerry (BB.TO) is climbing 1.27 percent and Descartes Systems Group (DSG.TO) is rising 0.61 percent. Constellation Software (CSU.TO) is higher by 0.40 percent.

The Capped Telecommunication Services Index is gaining 0.44 percent. Manitoba Telecom Services (MBT.TO) is rising 1.03 percent and BCE (BCE.TO) is increasing 0.41 percent.

The Capped Industrials Index is higher by 0.17 percent. CAE (CAE.TO) is rising 0.39 percent and AutoCanada (ACQ.TO) is gaining 0.47 percent. Canadian Pacific Railway (CP.TO) is increasing 1.46 percent.

Bombardier (BBD-A.TO) is losing 1.38 percent. The company announced that Ethiopian Airlines has bought two additional Q400 turboprop airliners that will bring Ethiopian Airlines' Q400 aircraft fleet to a total of 19 aircraft. The transaction is valued at approximately $63 million.

The heavyweight Financial Index is rising 0.08 percent. Royal Bank of Canada (RY.TO) is increasing 0.16 percent and National Bank of Canada (NA.TO) is gaining 0.27 percent. Toronto-Dominion Bank (TD.TO) is up 0.09 percent and Bank of Montreal (BMO.TO) is higher by 0.62 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.03 percent.

Wi-Lan (WIN.TO) is rising 0.54 percent, after it entered into a multi-year license agreement with Kyocera Corp.

On the economic front, Germany's core and extra budgets of overall public budget showed a financial surplus of EUR 3.9 billion in the first three quarters of 2015, Destatis reported Tuesday. In the same period of last year, the overall public budget showed a cash deficit of EUR 20.8 billion.

Italy's consumer confidence weakened for the first time in five months in December, but less-than-expected, figures from the statistical office Istat showed Tuesday. The consumer confidence index dropped to 117.6 in December from 118.4 in the previous month. Economists had expected the index to fall to 117.0.

In commodities, crude oil futures for January delivery are up $0.84 or 2.28 percent at $37.65 a barrel.

Natural gas for January is up 0.132 or 5.92 percent at $2.36 per million btu.

Gold futures for February are up $1.50 or 0.14 percent at $1,069.80 an ounce.

Silver for March is up $0.126 or 0.91 percent at $14.01 an ounce.