TSX Ends Lower As Commodity Prices Slip -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a five-day gain to end lower on Tuesday, as commodity prices declined sharply with some heavy selling in the mining sector. The drop came amid a slew of upbeat economic data from the U.S. and strong earnings report from Scotiabank.

Energy stocks ended notably lower, hurt by weak crude oil prices, while gold stocks declined tracking lower bullion prices.

The S&P/TSX Composite Index closed Tuesday at 14,658.02, down 57.67 points or 0.39 percent. The index scaled an intraday high of 14,725.42 and a low of 14,634.94.

The Financial Index gained 0.36 percent with Bank of Nova Scotia (BNS.TO) gaing 1.13 percent after reporting a second-quarter profit that rose 14.0 percent to C$1.8 billion from C$1.58 billion in the year-ago quarter. Net income attributable to common shareholders grew year-over-year to C$1.7 billion from C$1.47 billion last year.

Toronto-Dominion Bank (TD.TO) up 0.60 percent and Royal Bank of Canada (RY.TO) up 0.09 percent.

Among other major banks, the Bank of Montreal (BMO.TO) added 0.72 percent, and the Canadian Imperial Bank of Commerce (CM.TO) shed 0.17 percent. National Bank of Canada (NA.TO) added 0.60 percent.

The Capped Healthcare Index gained 0.05 percent with Catamaran Corp. (CCT.TO) down 0.61 percent and Extendicare Inc. (EXE.TO) up 2.23 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 1.79 percent after Allergan Inc. (AGN) in an investor presentation raised concerns over the sustainability of Valeant Pharmaceuticals' business model.

Crude oil ended lower on easing concerns over Ukraine, following pro-European candidate Petro Poroshenko's victory in the country's presidential elections during the weekend.

The Energy Index shed 0.84 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $0.24 or 0.2 percent to close at $104.11 a barrel Tuesday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) fell 1.16 percent, while Canadian Oil Sands Limited (COS.TO) dropped 1.01 percent. Husky Energy Inc. (HSE.TO) slipped 0.95 percent, and Canadian Natural Resources Ltd. (CNQ.TO) dropped 1.28 percent.

Baytex Energy Corp. (BTE.TO) surrendered 0.74 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 0.35 percent.

Gold futures ended lower after a slew of upbeat economic data out of the U.S., as well as on developments in Ukraine and a strengthening dollar.

The Global Gold Index plummeted 3.92 percent, with gold futures for June delivery plunging $26.20 or 2.0 percent to close at $1,265.50 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 3.19 percent, Osisko Mining Corp. (OSK.TO) slipped 2.61 percent, Barrick Gold Corp. (ABX.TO) dived 4.0 percent, and Agnico Eagle Mines Limited (AEM.TO) down 5.26 percent.

The Capped Materials Index plunged 2.25 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) dropping 0.98 percent.

The Diversified Metals & Mining Index shed 0.49 percent, with Lundin Mining Corp. (LUN.TO) up 0.17 percent, First Quantum Minerals Ltd. (FM.TO) up 0.02 percent, and Teck Resources Limited (TCK.B.TO) down 0.86 percent.

The Information Technology Index gained 0.46 percent, with BlackBerry Limited (BB.TO) down 0.75 percent, Constellation Software Inc (CSU.TO) up 3.11 percent, and Celestica Inc. (CLS.TO) up 1.59 percent. Avigilon Corp. (AVO.TO) dropped 2.18 percent.

The Capped Industrials Index moved up 0.16 percent, with Bombardier Inc. (BBD.B.TO) gaining 1.07 percent and Air Canada (AC.B) up 0.96 percent.

In corporate news, Lightstream Resources Ltd. (LTS.TO) shares are up 3.66 percent after the company agreed to sell a non-core asset for C$98 million.

In economic news, the data from the U.S. Commerce Department showed durable goods orders rose 0.8 percent in April, from an upwardly revised 3.6 percent rise in March, boosted by a notable increase in demand for military hardware. Excluding defense, new orders fell 0.8% in April. Excluding an increase in orders for transportation equipment, durable goods orders edged up by a modest 0.1 percent in April.

A report from Standard & Poor's showed home prices in major U.S. metropolitan areas rose by a more than expected 1.2 percent in March, following a 0.8 percent increase in February. Economists expected the index to rise by about 0.7 percent. On a non-seasonally adjusted basis, the index climbed 0.9 percent in March after coming in unchanged in the previous month.

A report from the Conference Board said U.S. consumer confidence improved in line with estimates, rising to 83.0 in May, from a downwardly revised 81.7 in April. Economists had been expecting the index to edge up to 83.0 from the 82.3 originally reported for the previous month.

The U.S. services sector expanded at its fastest in May since March 2012 even as employment growth increased, Markit Economics report showed Tuesday. The flash services purchasing managers index for May came in at 58.4, compared to the final reading of 55.0 in April. The index was expected to increase to 55.4 in May.

Meanwhile, home prices trended higher for the eleventh consecutive quarter, a Federal Housing Finance Agency report showed Tuesday. The Federal Housing Finance Agency House Price Index for the first quarter of 2014 rose 1.3 percent. Compared with last year, house prices rose 6.6 percent from the first quarter of 2013 to the first quarter of 2014, the agency said. FHFA's seasonally adjusted monthly index for March was up 0.7 percent from February.