Financials Withstand Downgrades -- Canadian Commentary

(RTTNews) - Canadian stocks nudged higher Tuesday, even as a ratings agency warned on lenders exposure to a potential housing bubble.

Macquarie downgraded a slew of lenders including CIBC, Genworth MI and Home Capital Group due to concerns the domestic housing market has overextended itself.

Still, financials were fractionally higher today, helping offset significant weakness in the energy sector.

The S&P/TSX Composite Index was up 37.33 points, or 0.24 percent, to 15,426.28, inching back near 20-month highs.

Valeant (VRX.TO) led gains in the health care sphere, as the troubled pharma fetched a good price for some of its businesses.

Valeant sold its "CeraVe," "AcneFree," and "AMBI" skincare brands to L'Oreal SA for $1.3 billion in cash. The company also announced a $820.0 million deal to sell Dendreon Pharmaceuticals to Sanpower Group Co.

Saks Fifth Ave owner Hudson's Bay (HBC.TO) slashed guidance for a second time, blaming a tough retail environment. Shares tumbled 12 percent.

Gildan (GIL.TO) has won the auction for American Apparel with an $88 million bid. Shares rose 1.5 percent.

A Lake Superior Native American tribe wants Enbridge (ENB.TO) to remove its pipeline from tribal lands in northern Wisconsin. Shares slipped 1.4 percent.