TSX Ends Higher On Upbeat Data, Bernanke - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Thursday, tracking rising global equity markets led mainly by financial and energy stocks, as investor sentiments rose on the U.S. Federal Reserve Chairman Ben Bernanke's remarks before the Senate Banking Committee in Washington on the central bank's accommodative monetary policy. Investors also weighed some upbeat macroeconomic data out of the U.S. with some better than expected initial job claims data, while Canada recorded some impressive wholesale sales growth since beginning 2011.

On the concluding day of his testimony, Bernanke said it was too early to predict if the central bank will begin tapering its asset purchase program at its September meeting. The Fed Chairman had earlier stated there was no set time line before the central bank to slow down its quantitative easing program.

The S&P/TSX Composite Index closed Thursday at 12,628.85, up 60.08 points or 0.48 percent. The index touched an intraday high of 12,680.23 and a low of 12,568.34.

The Global Gold Index gained 0.05 percent, with gold futures for August delivery up $6.70 or 0.5 percent to close at $1,284.20 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 0.67 percent, while Goldcorp Inc. (G.TO) dropped 1.01 percent. Barrick Gold Corp. (ABX.TO) ended flat at $16.34, while Kinross Gold Corp. (K.TO) shed 1.36 percent.

The Capped Materials Index shed 0.35 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 0.15 percent.

The Diversified Metals & Mining Index moved up 0.10 percent, with First Quantum Minerals Ltd. (FM.TO) up 2.29 percent and Teck Resources Limited (TCK.B.TO) down 0.67 percent. Lundin Mining Corp. (LUN.TO) dropped 0.72 percent, while Osisko Mining Corp. (OSK.TO) plunged 6.40 percent.

The Energy Index gained 0.76 percent, with U.S. crude oil futures for August delivery jumping $1.56 or 1.5 percent to close at $108.04 a barrel Thursday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) shed 0.25 percent, while Enbridge Inc. (ENB.TO) slipped 0.09 percent. Talisman Energy Inc. (TLM.TO) shed 0.42 percent, while Encana Corp. (ECA.TO) added 1.29 percent. Canadian Natural Resources Limited (CNQ.TO) gathered 1.65 percent.

The Financial Index added 1.34 percent with Manulife Financial Corp. (MFC.TO) up 1.50 percent and Bank of Montreal (BMO.TO) up 1.10 percent. Royal Bank of Canada (RY.TO) moved up 1.54 percent, while Toronto-Dominion Bank gained 1.53 percent. Bank of Nova Scotia (BNS.TO) added 1.40 percent.

The Information Technology Index slipped 0.03 percent, with BlackBerry Limited (BB.TO) dropping 2.28 percent.

The Capped Industrials Index ended flat, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 1.20 percent.

Transition Therapeutics Inc. (TTH.TO) jumped 36.22 percent to C$4.25 after the company announced that the FDA granted 'fast track designation' to its drug candidate for the treatment of neuropsychiatric symptoms in Alzheimer's disease.

Forest product company West Fraser Timber (WFT.TO) rose 4.63 percent after reporting improved second-quarter profit of C$109 million or C$2.23 per share compared to C$24 million or C$0.57 per share in the same period last year. Analysts expected the company to earn C$1.67 per share for the quarter.

Entertainment company Cineplex Inc. (CGX.TO) added 0.58 percent after announcing its offer to purchase EK3 Technologies Inc., a London based in-store digital merchandising provider, for about $40 million.

In economic news, Statistics Canada said the wholesale sales recorded its largest rate of growth in the month of May since the beginning of 2011, rising 2.3 percent to $50.3 billion. The increase was largely due to higher sales in the agricultural supplies industry and the food industry. In volume terms, wholesale sales were up 2.4 percent.

In economic news from the U.S., the Labor Department said initial jobless claim fell to 334,000 in the week ended July 13, a decrease of 24,000 from the previous week's revised figure of 358,000. Economists had been expecting jobless claims to dip to 345,000 from the 360,000 originally reported for the previous week.

With leading U.S. economic indicators turning in a mixed performance in June, the Conference Board released a report on Thursday showing that its leading economic index came in unchanged for the month. The Conference Board said its leading economic index was flat in June after edging up by 0.2 percent in May and jumping by 0.8 percent in April. Economists expected the index to rise by 0.3 percent.

Philadelphia-area manufacturers reported increased business activity in July, a report from the Federal Reserve Bank of Philadelphia showed Thursday, with the index of regional manufacturing activity reaching a two-year high. The Philly Fed's diffusion index of current activity surged up to 19.8 in July from 12.5 in June, with a positive reading indicating an increase in regional manufacturing activity. Economists expected the index to drop to a reading of 9.0. This is the highest level the index has reached since jumping to 36.1 in March 2011.

Elsewhere, eurozone current account surplus decreased in May from the previous month, due mainly to higher deficit in current transfers and a decline in revenues, the European Central Bank said. The seasonally adjusted current account surplus dropped to 19.6 billion euros in May from an upwardly revised 23.8 billion euros in April. In March, the balance was a surplus of 23.1 billion euros.

U.K. retail sales volume, both excluding and including auto fuel, grew 0.2 percent each month-on-month in June, data from the Office for National Statistics showed. Economists had forecast sales including auto fuel to grow 0.3 percent following a 2.1 percent rise in May. Sales, excluding auto fuel grew in line with economists' expectations, after expanding 2.1 percent a month ago.

Meanwhile, the Federal Reserve Chairman Ben Bernanke concluding his testimony before lawmakers in Washington, said central bank intends to maintain its highly accommodative policy for the foreseeable future. Speaking to the Senate Banking Committee, Bernanke said inflation remains in check, allowing the Fed to keep unprecedented support measures in place until the unemployment rate significantly improves.

"It is way too early to make judgment on whether the Fed will slow down asset purchases at its September meeting," Bernanke said. Market experts have targeted the September meeting for a possible tapering back of the quantitative easing plan.