TSX Ends Higher As Commodities Trend Lower -- Canadian Commentary

(RTTNews) - Canadian stocks ended slightly higher on Thursday, even as global equity markets moved up amid some mixed economic data out of the U.S. following the U.S. Federal Reserve's move to maintain interest rates while slashing its monthly asset purchase program. The main index was pegged down with lower commodity prices dragging down mining and energy stocks.

In economic news from the U.S., first-time claims for U.S. unemployment benefits fell much more than anticipated in the week ended September 13, with claims pulling back near the fourteen-year low set in July.

A Federal Reserve Bank of Philadelphia survey showed continued growth in regional manufacturing activity in September, although the index of activity in the sector dropped from its relatively high reading in August.

Housing starts in the U.S. showed a more than expected drop in August, with new construction of multi-family homes indicating a substantial pullback, a Commerce Department report said.

On Wednesday, the Federal Reserve reduced its monthly asset purchases to $15 billion, while indicating the program will likely end in October. The Fed maintained its pledge to keep interest rates at near-zero for a "considerable time" after its bond-buying stimulus program ends.

Although policymakers refrained from offering a more specific time-line for the first interest rate hike, there were hints in the Fed statement that tightening may be less gradual once underway. The Fed projects a significant drop in unemployment to below 5 percent by 2017, and said they expect annual inflation to run closer to target levels of around 2 percent.

The S&P/TSX Composite Index closed Thursday at 15,465.54, up 6.66 points or 0.04 percent. The index scaled a intraday high of 15,477.02 and a low of 15,422.47.

On Wednesday, the index closed down 51.66 points or 0.33 percent at 15,458.88, after scaling a intraday high of 15,520.40 and a low of 15,428.34.

Crude oil plunged to end sharply lower on renewed fears of a supply glut following yesterday's weekly official oil report from the Energy Information Administration with crude stockpiles in the U.S. having increased more than expected.

The Energy Index dived 0.69 percent, with U.S. crude oil futures for October delivery plunging $1.35 or 1.5 percent to close at $93.07 a barrel Thursday on the Nymex.

Among energy stocks, Husky Energy (HSE.TO) shed 0.96 percent, Cenovus Energy Inc. (CVE.TO) dropped 3.34 percent, Enbridge Inc. (ENB.TO) added 1.79 percent, Suncor Energy Inc. (SU.TO) inched up 0.02 percent, Encana Corp. (ECA.TO) dropped 1.37 percent, and Canadian Natural Resources Limited (CNQ.TO) dipped 0.51 percent.

The Financial Index gained 0.50 percent, with Toronto-Dominion Bank (TD.TO) up 0.37 percent, Canadian Imperial Bank of Commerce (CM.TO) added 0.13 percent, Royal Bank of Canada (RY.TO) added 0.79 percent, Bank of Nova Scotia (BNS.TO) slipped 0.04 percent, and Bank of Montreal (BMO.TO) up 0.65 percent.

Manulife Financial Corp. (MFC.TO) gained 1.54 percent, while Sun Life Financial Inc. (SLF.TO) added 0.79 percent.

Gold futures ended lower with markets continuing to speculate that U.S. rate hikes will be at a faster pace once the Federal Reserve begins its monetary tightening, and as well on some mixed economic data from the U.S.

Global Gold Index dropped 1.90 percent, with gold for December delivery shedding $9.00 percent or 0.7 percent to settle at $1,226.90 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 2.60 percent, Yamana Gold Inc. (YRI.TO) shed 1.79 percent, and B2Gold Corp. (BTO.TO) fell 1.29 percent. Eldorado Gold Corp. (ELD.TO) dropped 3.99 percent, while Barrick Gold Corp. (ABX.TO) surrendered 2.07 percent.

The Capped Materials Index dropped 1.49 percent mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.74 percent.

The Diversified Metals & Mining Index fell 1.33 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.23 percent, Lundin Mining Corp. (LUN.TO) down 1.03 percent, and Teck Resources Limited (TCK.B.TO) dipped 1.61 percent.

The Capped Industrial Index edged up 0.05 percent, with Bombardier Inc. (BBD.B.TO) down 1.90 percent and Air Canada (AC.B.TO) surging 4.52 percent.

The Information Technology Index fell 0.33 percent, with BlackBerry Limited (BB.TO) down 2.73 percent.

The Consumer Staples Index slipped 0.22 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) down 1.08 percent.

The Healthcare Index dropped 0.40 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 1.50 percent, Extendicare Inc. (EXE.TO) up 0.47 percent and Catamaran Corp. (CCT.TO) down 0.31 percent.

The Telecom Index added 0.32 percent with Rogers Communications Inc. (RCI.B.TO) inching up 0.05 percent and TELUS Corp. (T.TO) gaining 0.72 percent.

In corporate news, Penn West Petroleum Ltd. (PWT.TO) surged 7.76 percent after reporting a second quarter net profit of C$143 million or C$0.29 per share, compared with a loss of C$53 million or C$0.11 per share last year. On an adjusted basis, the company earned C$0.60 per share.

Parkland Fuel Corp (PKI.TO) soared 14.75 percent after revealing an agreement to acquire Pioneer Energy for C$378 million, subject to the satisfaction of closing conditions and adjustments. The deal price includes $259 million in cash, $119 million in common shares of Parkland, and the assumption of standard operating liabilities.

In economic news from the U.S., data from the Labor Department showed initial jobless claims to have tumbled more than expected to 280,000 in the week ended September 13, falling 36,000 from the previous week's revised level of 316,000. Economists expected jobless claims to edge down to 305,000 from the 315,000 originally reported for the previous week.

A report from the Commerce Department said that U.S. housing starts declined by a much more than expected 14.4 percent to a seasonally adjusted rate of 956,000 in August, from the revised July estimate of 1.1117 million.

Meanwhile, a report released by the Federal Reserve Bank of Philadelphia indicated continued growth in regional manufacturing activity in September, although the bank said the index of activity in the sector declined to 22.5, from a three-year high of 28.0 in August.

From Europe, U.K. retail sales volume including auto fuel in August increased 0.4 percent in August as sale of high powered vacuum cleaners and furniture, offset decline in food store demand. The growth was in line with expectations.

U.K. industrial orders declined more than expected a -4 percent in September from +11 percent in August as export demand dropped to a 21-month low, a survey by the Confederation of British Industry showed Thursday.