Canadian Stocks Rally Into Positive Territory -- Canadian Commentary

(RTTNews) - After a weak start, Canadian stocks are edging higher Thursday morning, supported by upbeat results from Canadian Pacific Railway and some fairly encouraging U.S. economic data.

The early weakness was due to a disappointing report on U.S. housing starts and worries about the impact of fresh sanctions imposed on Russia by the U.S. and European Union.

The benchmark S&P/TSX Composite Index is up 21.82 points or 0.14 percent at 15,248.16, after rising to a new all-time high of 15,261.46, surpassing its previous best of 15,256.36, recorded on July 3.

On Wednesday, the index ended up 145.02 points or 0.96 percent at 15,226.34, a new closing high, as investors reacted positively to Bank of Canada's interest rate decision and an upbeat Chinese GDP data.

S&P/TSX Capped Financial Index is lower by 0.33 percent, with all the six major banks down in negative territory, losing 0.2 to 0.5 percent.

Two other key members of the index, Manulife Financial Corporation (MFC.TO) and Sun Life Financial Inc. (SLF.TO) are also weak, declining 0.8 percent and 0.6 percent, respectively.

The Capped Consumer Discretionary index is down 0.3 percent. Magna International Inc. (MG.TO) and Linamar Corporation (LNR.TO) are losing over 0.5 percent.

The Capped Industrial Index is rising 1.4 percent, lifted by Canadian Pacific Railway Ltd. (CP: TO), up 4 percent following a 47 percent increase in profit for the second quarter from last year.

Canadian National Railway Company (CNR.TO), Bombardier Inc. (BBD.B.TO), Finning International Inc. (FTT.TO) and WestJet Airlines Ltd. (WJA.TO) are up 0.5 to 1.0 percent.

Information Technology Index is declining 0.5 percent, with BlackBerry (BB.TO) and Avigilon Corporation (AVO.TO) losing 2.3 percent and 1.1 percent, respectively.

In the energy sector, Canadian Oil Sands Limited (COS.TO) and Husky Energy Inc. (HSE.TO) are advancing 0.8 percent and 0.7 percent, respectively. ARC Resources (ARX.TO) is down 0.6 percent.

Among gold stocks, Agnico Eagle Mines Limited (AEM.TO) is rising nearly 3 percent. Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Silver Wheaton Corp. (SLW.TO) and Franco-Nevada Corporation (FNV.TO) are moving up 0.8 to 1.5 percent.

Colabor Group Inc. (GCL.TO) shares are down over 3 percent after reporting second-quarter net earnings of C$1.63 million or C$0.06 per basic share, compared to C$2.39 million or C$0.09 per basic share, a year ago.

Valeant Pharmaceuticals International Inc. (VRX.TO) has announced that its subsidiary, Bausch + Lomb has received 510(k) clearance from the U.S. Food and Drug Administration for the VICTUS Femtosecond Laser Platform for laser-assisted lens fragmentation during cataract surgery. Valeant Pharmaceuticals is up 0.7 percent.

West Fraser Timber Co. Ltd. (TSX.TO) shares are down more than 3 percent. The company said Wednesday that it posted net income of $74 million or 87 cents per share in the June quarter, compared with $109 million or $1.27 per share in the corresponding quarter last year.

In commodities, crude oil prices are higher, amid renewed worries about supplies following a drop in U.S. crude stockpiles and reports of fresh violence in Iraq and Ukraine.

Crude oil futures for August are up $1.26 or 1.25 percent at $102.47 a barrel.

Natural gas for August is down $0.078 or 1.87 percent at $4.041 per million btu.

Gold futures for August are up $4.70 or 0.36 percent at $1,304.50 an ounce.

Silver for September is up $0.073 or 0.35 percent at $20.848 an ounce. Meanwhile, copper is up $0.004 or 0.13 percent at $3.219 per pound.

In economic news from the U.S., a report from the Labor Department showed initial jobless claims to have declined by 3,000 to a seasonally adjusted 302,000 in the week ended July 12. Economists expected jobless claims to increase to 310,000 in the week.

Data from the Commerce Department showed new residential construction in the U.S. to have unexpectedly dropped in June, falling 9.3 percent, to a nine-month low of 893,000 from the revised May estimate of 985,000. Economists had expected housing starts to climb to 1.020 million in the month.

Building permits fell 4.2 percent to an annual rate of 963,000 in June from the revised May rate of 1.005 million.

Meanwhile, the Philadelphia Federal Reserve's Business Outlook Survey indicated a continued expansion in the region's manufacturing sector in July, with the index of activity in the sector jumping to 23.9 in July, its highest level in over three years.