TSX Ends Higher On Positive Data - Canadian Commentary

(RTTNews) - Canadian stocks rallied to end at a near 2-1/2-year high Thursday, driven mostly by mining and energy stocks with almost all major sub-indices in positive territory after a slew of positive U.S. economic data kept investors interested with initial jobless benefit claims and inflation data in line with analyst estimates.

In economic news from the U.S., first-time claims for unemployment benefits showed a modest decline last week, dropping to a six-week low. As well, U.S. consumer prices rose in line with economists' estimates in December, with energy prices showing a notable rebound as gasoline prices jumped.

While Asian stocks turned in a mixed performance, most European stocks ended in the red notwithstanding the World Bank's update and improved growth projections for the world economy. The World Bank on Wednesday raised its growth projections for the global economy indicating the easing of fiscal consolidation measures in high-income countries has boosted growth prospects.

The S&P/TSX Composite Index closed Thursday at 13,831.58, up 59.00 points or 0.43 percent. The index scaled an intraday high of 13,831.58 and a low of 13,741.74.

Crude oil ended lower on demand growth concerns after an OPEC report showed output in December to have declined, with Iran expected to resume export of its crude after a deal to lift sanctions with six world powers.

The Energy Index gathered 0.73 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, dropping $0.21 or 0.2 percent to close at $93.96 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) ended flat at $35.89 a share, while Suncor Energy Inc. (SU.TO) added 0.51percent. Talisman Energy Inc. (TLM.TO) gained 0.41 percent, while Encana Corp. (ECA.TO) added 1.26 percent. Pacific Rubiales Energy Corp. (PRE.TO) gained 2.18 percent.

The Information Technology Index added 0.44 percent, with smartphone maker BlackBerry Limited (BB.TO) edging up 0.11 percent.

The Diversified Metals & Mining Index surged 4.37 percent, with Teck Resources Limited (TCK.B.TO) soaring 4.36 percent and First Quantum Minerals Ltd. (FM.TO) up 4.59 percent. Lundin Mining Corp. (LUN.TO) gained 3.87 percent.

The Capped Materials Index gained 0.99 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) slipping 0.99 percent.

Gold futures settled higher with investors turning to the precious metal after global equity markets trended lower on some soft inflation and initial unemployment benefit claims data from the U.S.

The Global Gold Index added 0.99 percent, with gold futures for February delivery, the most actively traded contract, gaining $1.90 or 0.2 percent to close at $1,240.20 an ounce Thursday on the Nymex.

Among gold stocks, Goldcorp Inc. (G.TO) gained 0.41 percent, while Barrick Gold Corp. (ABX.TO) added 0.71 percent. Yamana Gold Inc. (YRI.TO) moved up 0.69 percent, while Alamos Gold Inc. (AGI.TO) plummeted 17.20 percent.

The Financial Index edged up 0.18 percent with Bank of Montreal (BMO.TO) up 0.72 percent and Royal Bank of Canada (RY.TO) up 0.42 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.19 percent, while Toronto-Dominion Bank (TD.TO) gathered 0.22 percent.

The only sector to close lower was the Capped Industrials Index, which shed 0.98 percent with Bombardier Inc. (BBD.A.TO, BBD.B.TO) plunging 7.74 percent after the aircraft maker postponed the launch of its CSeries jetliner for a fourth time indicating more test flights requirement for the plane.

In economic news, first-time claims for U.S. unemployment benefits declined in the week ended January 11, falling to their lowest level in over a month, a report from the Labor Department showed Thursday. Initial jobless claims edged down to 326,000, a decrease of 2,000 from the previous week's revised figure of 328,000. Economists expected jobless claims to dip to 328,000 from the 330,000 originally reported for the previous week. Initial jobless claims have thus fallen to its lowest level since hitting 305,000 in the week ended November 30.

U.S. consumer prices rose in line with economists' estimates in December, with energy prices showing a notable rebound, the Labor Department said in a report on Thursday. The consumer price index rose 0.3 percent in December after coming in unchanged in November. The price growth, which matched the expectations of economists, reflected the biggest monthly increase since June. The increase was partly due to a 2.1 percent rebound in energy prices after gasoline prices jumped 3.1 percent, which followed decreases in November and October of 1.0 percent and 1.7 percent, respectively.

Manufacturing growth in the Philadelphia-area continued in January, with the index of regional manufacturing activity rising by more than expected, a report from the Federal Reserve Bank of Philadelphia showed Thursday. The Philly Fed diffusion index of current activity rose to 9.4 in January from a revised 6.4 in December, with a positive reading indicating an increase in regional manufacturing activity. Economists expected the index to climb to 8.7. A break-up shows the shipments index edged up to 12.1 in January from 11.9 in December, while the new orders index fell to 5.1 from 12.9.

A report from the National Association of Home Builders on Thursday showed homebuilder confidence in January pulled back modestly, after reporting a significant improvement in in the previous month. The NAHB/Wells Fargo Housing Market Index edged down to 56 in January from a downwardly revised 57 in December. Economists expected the index to come in unchanged compared to the 58 originally reported for the previous month. Despite the unexpected pullback, the housing market index remains above the reading of 54 recorded in November.

The Chicago business barometer came in higher than previously estimated in December as a result of the annual seasonal adjustment recalculation, according to a report from MNI Indicators on Thursday. The Chicago business barometer for December came in at 60.8 compared to the previously reported 59.1. A reading above 50 indicates growth in Chicago-area business activity. The barometer was revised lower in the first quarter but was upwardly revised in both the third and fourth quarters, pointing to an even stronger second half than initially estimated.