TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Friday, tracking rising global equity markets with almost all sectors in in the green, after some positive economic data from the U.S.

With strength in U.S. markets helping drive markets higher, Canadian stocks saw strength in mining, healthcare and industrial sectors.

The majority of the European markets were closed for the May Day holiday Friday. Markets in the United States closed on the higher side following yesterday's sell-off. The losses seen over the past few sessions have pulled the Nasdaq and the S&P 500 down well off the record closing highs set last Friday.

Economic activity in the U.S. manufacturing sector continued to expand in April, although the index of activity in the sector unexpectedly held steady. Consumer sentiment in the U.S. also saw a modest improvement in April, albeit a shade lesser than expected.

Nonetheless, U.S. construction spending in March showed an unexpected decline, partly reflecting a sharp pullback in spending on residential construction.

The benchmark S&P/TSX Composite Index closed Friday at 15,339.77, up 115.25 points or 0.75 percent. The index scaled an intraday high of 15,362.88 and a low of 15,208.43.

On Thursday, the index closed down 122.82 points or 0.80 percent, at 15,224.52. The index scaled an intraday high of 15,324.20 and a low of 15,192.46.

The Diversified Metals & Mining Index surged 4.08 percent, with Lundin Mining (LUN.TO) jumping 5.00 percent, Sherritt International Corp. (S.TO) soared 6.40 percent, and Teck Resources Limited (TCK.B.TO) gained 3.44 percent.

First Quantum Minerals Ltd. (FM.TO) surged 5.63 percent, after reporting a first quarter loss of $0.14 per share, compared to the profit of $0.21 per share last year.

Gold futures ended lower on some mostly upbeat data from the U.S., even as investors continued to mull over the Federal Reserve's open-ended statement on interest rates leaving traders to speculate on when tightening will begin.

The Gold Index gained 1.07 percent, with gold for June delivery dropping $7.90 or 0.7 percent to settle at $1,174.50 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) inched up 0.09 percent, Barrick Gold Corp. (ABX.TO) added 1.40 percent, Kinross Gold Corp (K.TO) gathered 2.05 percent, and Yamana Gold Inc. (YRI.TO) moved up 0.43 percent.

Eldorado Gold Corp. (ELD.TO) gained 2.33 percent, after reporting a first quarter adjusted profit of $0.03 per share.

Agnico Eagle Mines (AEM.TO) surged 5.67 percent, after reporting first quarter adjusted earnings of $0.15 per share.

The Capped Materials Index jumped 1.84 percent, mostly on rising gold stocks, with Agrium Inc. (AGU.TO) up 1.50 percent and Potash Corp. of Saskatchewan Inc. (POT.TO) moving up 0.38 percent.

Franco-Nevada Corp. (FNV.TO) gained 3.62 percent, while Silver Wheaton (SLW.TO) added 3.03 percent.

Crude oil lower as the dollar strengthened, notwithstanding some positive global economic data. Crude ticked lower on reports of crude shipments from Iraq scaling a record high, with the output from Organization of the Petroleum Countries at its highest since late 2012.

The Energy Index inched up 0.03 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, dropping $0.48 or 0.8 percent, to settle at $59.15 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) shed 0.33 percent, while Crescent Point Energy Corp. (CPG.TO) fell 1.04 percent.

Pacific Rubiales Energy Corp. (PRE.TO) surged 7.11 percent, Canadian Natural Resources Limited (CNQ.TO) dipped 0.35 percent, and Cenovus Energy Inc. (CVE.TO) added 1.76 percent.

Encana Corp. (ECA.TO) fell 0.53 percent, after it sold its Moneta Divide assets to Aethon Energy Management and RedBird Capital Partners.

Canadian Oil Sands Limited (COS.TO) gained 0.53 percent, after reporting a first quarter loss of $0.38 per share, compared to the profit of $0.35 per share last year.

The heavyweight Financial Index added 0.19 percent, with all major banks settling lower. Bank of Nova Scotia (BNS.TO) added 0.44 percent, while Toronto-Dominion Bank (TD.TO) gained 0.50 percent. Royal Bank of Canada (RY.TO) added 0.37 percent, while Canadian Imperial Bank of Commerce (CM.TO) moved up 0.14 percent.

National Bank of Canada (NA.TO) added 0.39 percent, while Bank of Montreal (BMO.TO) gathered 0.37 percent.

The Capped Health Care Index gained 2.05 percent as Concordia Healthcare Corp. (CXR.TO) gathered 3.18 percent, Catamaran Corp. (CCT.TO) gained 0.87 percent, and Extendicare Inc. (EXE.TO) moved up 1.14 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) jumped 3.65 percent.

The Capped Industrials Index added 1.68 percent, as Air Canada gained 2.60 percent, Finning International Inc. (FTT.TO) moved up 2.51 percent, and Bombardier Inc. (BBD.B.TO) shed 0.41 percent.

Canadian Pacific Railway Limited (CP.TO) gathered 2.65 percent, while Canadian National Railway Company (CNR.TO) added 2.81 percent.

The Information Technology Index moved up 0.83 percent, as BlackBerry Limited (BB.TO) gained 2.04 percent, Descartes Systems Group Inc. (DSG.TO) added 1.05 percent, and Sierra Wireless, Inc. (SW.TO) moved up 3.54 percent.

The Capped Telecommunication Index moved up 0.37 percent, as BCE Inc. (BCE.TO) gained 1.30 percent, Rogers Communications Inc. (RCI.B.TO) fell 0.16 percent and TELUS Corp. (T.TO) improved 0.50 percent.

Norbord (NBD.TO) rose 3.04 percent, after reporting a first quarter loss of $0.11 per share, compared to the profit of $0.13 per share in the prior year.

Aecon Group (ARE.TO) gained 2.67 percent, after being awarded a $109 million contract by North West Redwater Partnership.

On the economic front, economic activity in the U.S. manufacturing sector continued to expand in April, a report from the Institute for Supply Management showed Friday, although the index of activity in the sector unexpectedly held steady.

The ISM said its purchasing managers index came in at 51.5 in April, unchanged from the previous month. While a reading above 50 indicates continued growth in the manufacturing sector, economists had expected the index to edge up to 52.0.

Consumer sentiment in the U.S. saw a modest improvement in April, a report from the University of Michigan said Friday. The consumer sentiment index for April came in at 95.9, unrevised from the mid-month reading and up from 93.0 in March. Economists expected the index to be upwardly revised to 96.0.

Partly reflecting a sharp pullback in spending on residential construction, a Commerce Department report showed an unexpected decrease in U.S. construction spending in March. Construction spending fell by 0.6 percent to annual rate of $966.6 billion in March from the revised February estimate of $972.9 billion. Economists expected construction spending to increase by about 0.5 percent.

The manufacturing sector in China continued to barely expand in April, data from the National Bureau of Statistics showed on Friday with a manufacturing PMI score of 50.1. That beat expectations for 50.0, and was unchanged from the March reading.

The manufacturing sector in Japan slipped into contraction for the first time in nine months, the latest survey from Markit Economics showed Friday with a revised manufacturing PMI reading of 49.9. This is up from last month's preliminary April reading of 47.7, although it is down from 50.3 in March.

British manufacturing activity unexpectedly eased sharply to a seven-month low in April amid weaker demand, while central bank data showed that consumer creditgrew strongly, suggesting that the fragile economic recovery was largely being led by consumption.

Poor figures for the factory sector coupled with weaker-than-expected first quarter U.K. GDP may prove a severe blow to the Conservatives just days ahead of the May 7 election. The seasonally adjusted Markit/CIPS Purchasing Managers' Index fell to 51.9 in April from March's 54, which was revised from 54.4. Economists had expected the index to rise to 54.6.

U.K. mortgage approvals unexpectedly declined in March, after rising in the previous three months, data from the Bank of England showed Friday. The number of loan approvals for home purchase fell to 61,341 from a six-month high of 61,523 in February. Economists had expected an increase to 62,500.