Canadian Stocks Break Out Of Recent Funk -- Canadian Commentary

(RTTNews) - Canadian stocks are higher Wednesday morning, tracking positive cues from the U.S. and European markets.

Investors are also reacting positively to a slew of Canadian earnings and merger news. However, the mood is a bit cautious with the minutes of the U.S. Federal Reserve's April meeting due this afternoon.

Energy stocks are up, tracking higher crude oil prices. Financial and healthcare stocks are the other notable gainers, while gold stocks are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is up 73.10 points or 0.50 percent at 14,598.29.

On Tuesday, the index closed up 10.45 points or 0.07 percent 14,525.19.

Sears Canada Inc. (SCC.TO) is down 5.4 percent on reporting a first-quarter net loss of C$75.2 million or C$0.74 per share, compared to a net loss of $31.2 million or C$0.31 per share, last year. Adjusted EBITDA was a loss of C$58.1 million compared to a loss of C$9.8 million, last year.

Baytex Energy Corp. (BTE.TO) shares are modestly lower. The company has announced that the shareholders of Australia's Aurora Oil & Gas Limited (AEF.TO) have approved the agreement for Aurora to be acquired by Baytex. Through its subsidiary Baytex Energy Australia Pty Ltd., Baytex will buy Aurora shares for a total price of C$2.8 billion. Meanwhile, Aurora Oil & Gas Limited is up more than 4.5 percent.

Rio Alto Mining Ltd (RIO.TO) has announced that said it would buy Sulliden Gold Corp Ltd (SUE.TO) for about C$300 million to creates a leading mid-tier gold producer with a strong portfolio of assets in Peru. Rio Alto Mining shares are plunging over 13 percent, while Sulliden Gold Corp Ltd stock is up as much as 33 percent.

Orezone Gold Corp. (ORE.TO) said it has appointed Tim Miller as Chief Operating Officer to oversee and complete its ongoing feasibility work for its 100% owned Bombore Gold Project in Burkina Faso. The stock is unchanged from its previous closing price.

Energy stocks Encana Corporation (ECA.TO) and Talisman Energy Inc. (TLM.TO) are up 1.8 percent and 1.4 percent, respectively. Crescent Point Energy Corp. (CPG.TO) and Imperial Oil Limited (IMO.TO) are moving up 0.5 to 1 percent.

Among gold stocks, Barrick Gold Corporation (ABX.TO) is losing over 4 percent, Agnico Eagle Mines Limited (AEM.TO) is declining 3.3 percent, Goldcorp Inc. (G.TO) is down 2.3 percent, Silver Wheaton Corp. (SLW.TO) is down 2.6 percent and Franco-Nevada Corporation (FNV.TO) is lower by 1.6 percent.

Meanwhile, First Quantum Minerals Ltd. (FM.TO) and Yamana Gold Inc. (YRI.TO) are up 4 percent and 3.5 percent, respectively.

Among big six banks, Royal Bank of Canada (RY.TO) and Bank of Nova Scotia (BNS.TO) are moving up 0.8 percent and 0.7 percent, respectively. Toronto-Dominion Bank (TD.TO) and Bank of Montreal (BMO.TO) are modestly lower, while Canadian Imperial Bank Of Commerce (CM.TO) and National Bank of Canada (NA.TO) are little changed.

In the industrial space, CAE Inc. (CAE.TO), Canadian Pacific Railway Limited (CP.TO), Progressive Waste Solutions Ltd. (BIN.TO) and Stantec Inc. (STN.TO) are up 1 to 2.3 percent. Meanwhile, Bombardier Inc. (BBD.B.TO), Finning International Inc. (FTT.TO) and MacDonald, Dettwiler and Associates Ltd. (MDA.TO) are down sharply, losing 2 to 3 percent.

Technology stocks CGI Group Inc. (GIB.A.TO), Constellation Software Inc. (CSU.TO), BlackBerry Limited (BB.TO) and Descartes Systems Group Inc. (DSG.TO) are lower by 1 to 2 percent. Meanwhile, DH Corporation (DH.TO) and Avigilon Corporation (AVO.TO) are up 1.3 percent and 2.3 percent, respectively.

Among healthcare stocks, Extendicare Inc. (EXE.TO) is moving up by over 5 percent, Catamaran Corporation (CCT.TO) is rising 2.3 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) is advancing 2 percent.

In commodities, crude oil prices are higher, with the data from the U.S. Energy Information Administration showed U.S. crude stockpiles to have dropped by a larger than expected 7.2 million barrels to 391.3 million barrels in the week ended May 16.

Crude oil futures for July delivery are up $1.07 or 1.06 percent at $103.40 a barrel, near a four-week high of $103.43 a barrel, it touched this morning.

Natural gas for July is down $0.017 or 0.36 percent at $4.536 per million btu.

Gold futures for June are down $3.90 or 0.30 percent at $1,290.70 an ounce.

Silver for July is up $0.019 or 0.10 percent at $19.418 an ounce.3.112 -0.034 (-1.07%)

Meanwhile, copper is down $0.034 or 1.07 percent at $3.112 per pound, after declining to $3.099 per pound, its weakest level in eleven weeks.

In the currency market, the Canadian loonie is trading at 1.0930 against the U.S. dollar, down 0.22 percent from previous close.

The U.S. Federal Reserve will release the minutes of its April monetary policy meeting at 2 pm ET.

Before that, investors are likely to react to speeches from New York Federal Reserve Bank President William Dudley and NY Fed economists on regional job gains and economic conditions.

At 11:30 am ET, Federal Reserve Chair Janet Yellen will deliver the commencement address to NYU at Yankee Stadium.

Additionally, Kansas City Federal Reserve Bank Esther George will speak on the U.S. economy and banking in Washington at 12:50 pm ET, and Minneapolis Federal Reserve Bank President Narayana Kocherlakota is due to speak in Minneapolis, Minnesota at 1:30 pm ET.