TSX Ends Higher On Ukraine Developments -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher Wednesday, after investors weighed the testimony of the U.S. Federal Reserve Chief Janet Yellen at the Joint Economic Committee and Russian President Vladimir Putin's statement that he would seek a peaceful resolution to the Ukraine crisis.

Putin claimed on Wednesday that all Russian troops deployed along the border with Ukraine have been withdrawn. US officials, however, said they have not noticed any such troop pullout from the Russia-Ukraine border.

Putin also urged pro-Russian separatists in southeastern Ukraine to postpone a May 11 referendum on autonomy, stressing that it was essential for starting a national dialogue aimed at ending the crisis. The separatists have reportedly responded by saying that they would consider his request on Thursday.

Canadian stocks fluctuated between gains and losses Wednesday, with investors reacting to a slew of earnings and economic data.

The S&P/TSX Composite Index closed Wednesday at 14,656.40, up 44.11 points or 0.30 percent. The index scaled an intraday high of 14,662.28 and a low of 14,572.13.

On Tuesday, the index ended lower with focus on Ukraine after several fighters were reportedly killed in skirmishes around some major eastern cities.

Crude oil ended sharply higher after an official weekly oil report from the U.S. Energy Information Administration showed an unexpected drop in U.S. crude oil stockpiles.

The Energy Index gained 0.66 percent, with U.S. crude oil futures for June delivery surging $1.27 or 1.3 percent to close at $100.77 a barrel Wednesday on the Nymex.

Encana Corp. (ECA.TO) shares jumped 4.6 percent after Freeport-McMoRan Copper & Gold Inc. (FCX) said its subsidiary Freeport-McMoRan Oil & Gas, has entered into a definitive agreement to sell its Eagle Ford Shale assets for $3.1 billion to a subsidiary of Encana.

Among other energy stocks, Husky Energy Inc. (HSE.TO) gained 1.86 percent, Canadian Natural Resources Ltd. (CNQ.TO) added 0.54 percent, and Suncor Energy Inc. (SU.TO) slipped 0.58 percent.

Canadian Oil Sands Limited (COS.TO) added 0.75 percent.

Talisman Energy Inc. (TLM.TO) surged 8.0 percent, despite reporting a net loss of $1.01 billion or $0.98 per share for the fourth quarter, compared to net income of $376 million or $0.31 per share in the year ago quarter.

The Capped Healthcare Index moved up 0.84 percent as Catamaran Corp. (CCT.TO) dropped 0.02 percent, and Valeant Pharmaceuticals International, Inc. (VRX.TO) edged down 0.01 percent.

Gold slipped sharply as investors focused on news of fresh talks between Russia and Ukraine to resolve the deadly conflict in eastern Ukraine.

The Global Gold Index dropped 1.87 percent, with gold futures for June delivery plummeting $19.70 or 1.5 percent to close at $1,288.90 an ounce Wednesday on the Nymex.

Yamana Gold Inc. (YRI.TO) dropped 1.12 percent, Kinross Gold Corp. (K.TO) slipped 1.80 percent, and Osisko Mining Corp. (OSK.TO) dipped 0.62 percent. Barrick Gold Corp. (ABX.TO) slipped 0.79 percent, while Agnico Eagle Mines Limited (AEM.TO) shed 0.96 percent.

The Capped Materials Index fell 1.11 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.03 percent.

The Financial Index added 0.39 percent with the Toronto-Dominion Bank (TD.TO) up 0.40 percent, Royal Bank of Canada (RY.TO) up 0.15 percent, and The Bank of Nova Scotia (BNS) up 0.18 percent. Bank of Montreal (BMO.TO) gained 0.09 percent, while National Bank of Canada (NA.TO) added 0.75 percent.

The Diversified Metals & Mining Index declined 1.33 percent, with Lundin Mining Corp. (LUN.TO) down 1.27 percent, First Quantum Minerals Ltd. (FM.TO) down 1.21 percent, and Teck Resources Limited (TCK.B.TO) down 1.34 percent.

The Information Technology Index dived 1.46 percent, with BlackBerry Limited (BB.TO) down 4.91 percent.

Among other tech stocks, Constellation Software Inc (CSU.TO) gained 1.31 percent, while Celestica Inc. (CLS.TO) slipped 0.88 percent.

Avigilon Corp. (AVO.TO) plummeted 16.46 percent, after the company on Tuesday named Mr Wan Jung as the interim chief financial officer after Bradely Bardua stepped down on health grounds.

The Capped Industrials Index gathered 0.84 percent, with Bombardier Inc. (BBD.B.TO) up 1.70 percent and Air Canada (AC.B) down 0.48 percent.

In corporate news, Sun Life Financial Inc. (SLF.TO) gained 0.27 percent after reporting first-quarter net income of C$400 million or C$0.65 per share, down from C$513 million or C$0.85 per share in the same period last year.

Gran Tierra Energy Inc. (GTE.TO) gained 2.09 percent after reporting a first-quarter profit that declined to $45.13 million from $57.91 million in the prior year. Earnings per share fell to $0.16 from $0.20.

HSBC Bank Canada (HSB.PR.E.TO) shares edged up 0.12 percent after reporting a first quarter profit of C$169 million, down from C$186 million a year ago. The bank's basic earnings per share declined to C$0.32, from C$0.34 for the same period last year.

Torstar Corp. (TS.B.TO) moved up 0.39 percent after reporting first quarter net income that grew to C$7.1 million, or C$0.09 per share, from C$4.2 million, or C$0.05 per share, last year.

Enbridge, Inc. (ENB.TO) shares gained 0.60 percent after the company posted first-quarter earnings of C$390 million or C$0.47 per share, compared to last year's C$250 million or C$0.31 per share.

Intact Financial Corp. (IFC.TO) gained 2.51 percent after reporting first quarter net income of C$160 million, down from C$174 million for the same period last year.

Tim Hortons Inc. (THI.TO) dropped 1.32 percent, after reporting a 5.5 percent rise in first-quarter net income attributable to the company to C$90.9 million, from C$86.2 million last year.

On the economic front, the data from Statistics Canada showed building permits were down 3 percent at $6 billion in March that followed an 11.3 percent fall in February. The value of permits in the non-residential sector fell 8.8 percent to $2.3 billion in March, the lowest level since January 2013. The value of permits in residential sector rose 1.0 per cent to $3.7 billion, following a 20.8 percent decrease in February.

In economic news from the U.S., the Labor Department said productivity dropped at an annual rate of 1.7 percent in the first quarter amid disruptions caused at U.S. workplaces by harsh winter weather. The consensus estimate called for a 1.2 percent quarter-over-quarter drop in productivity. The report showed unit labor costs to have jumped by 4.2 percent in the first quarter, the biggest increase in five quarters. Unit labor costs were expected to rise 2.8 percent.

In her testimony to the Joint Economic Committee in Washington, the Federal Reserve Chief Janet Yellen said that high a degree of monetary accommodation remains warranted due to slackness in labor markets and the continuation of inflation below the Fed's 2 percent objective.

Meanwhile, China's service sector growth eased from the prior month and remained weak in April, whereas manufacturing activity contracted for the fourth month, driving overall private sector activity further into negative zone. The headline HSBC services Purchasing Managers' Index dropped to 51.4 in April from 51.9 in March, results of a survey by Markit Economics showed Wednesday.

German factory orders declined 2.8 percent month-on-month in March, reversing the revised 0.9 percent rise posted in February, Destatis reported. Economists had forecast a 0.3 percent rise for March.