TSX Ends Lower As Financial, Gold Stocks Drop - Canadian Commentary

(RTTNews) - Canadian stocks ended a tad lower for a fifth straight session Tuesday, driven by declining financial,telecom, and gold mining stocks, even as energy and industrial shares climbed. Nevertheless, investors continued to mull over prospects of a global slowdown after some weak economic data from China and the eurozone yesterday.

The markets had little to cheer about, although the RBC Canadian Manufacturing Purchasing Managers' index, a measure of manufacturing business conditions, came in at a seasonally adjusted 55.3 in November, with new export orders rising to 54.5 from 51.3 in October.

In some mixed global economic data, U.S. construction spending rose more than anticipated in October, even as eurozone producer prices dropped at its fastest in 18 months during October.

Meanwhile, investors look ahead to Bank of Canada's interest rate announcement due tomorrow, while awaiting some crucial U.S. economic data, including the monthly non-farm payrolls report later this week, amid speculations of an early rate hike by the U.S. Federal Reserve.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,620.07, down 5.25 points or 0.04 percent. The index scaled a intraday high of 14,707.65 and a low of 14,570.67.

On Tuesday, the index ended lower on continued global growth concerns after some soft economic data from China and the eurozone.

The heavyweight Financial Index shed 0.71 percent, as Bank of Montreal (BMO.TO) dropped 2.25 percent after reporting a profit of C$1.07 billion for the fourth quarter, which is down C$4 million from the prior-year quarter. Quarterly earnings dropped to CS$1.56 per share from C$1.60 per share a year earlier.

Among other financial stocks, Royal Bank of Canada (RY.TO) dropped 1.64 percent, Toronto-Dominion Bank (TD.TO) shed 0.60 percent, Bank of Nova Scotia (BNS.TO) dived 0.65 percent, and National Bank of Canada (NA.TO) lost 0.94 percent. However, Canadian Imperial Bank of Commerce (CM.TO) gained 0.26 percent

Crude oil plummeted over three percent lower, ahead of the official U.S. inventories data with the dollar trending higher, even as concerns over a supply glut persisted.

The Energy Index gained 0.36 percent, although U.S. crude oil futures for January delivery plummeted $2.12 or 3.1 percent to close at $66.88 a barrel on the Nymex Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.33 percent, Talisman Energy Inc. (TLM.TO) gained 3.11 percent, Canadian Oil Sands Limited (COS.TO) dived 2.90 percent, Encana Corp. (ECA:TSX) shed 0.28 percent, and Cenovus Energy Inc. (CVE.TO) advanced 3.67 percent.

Canadian Natural Resources Limited (CNQ.TO) gained 2.00 percent, while Enbridge, Inc. (ENB.TO) moved up 1.17 percent.

Gold futures sharply lower on Tuesday, after having surged over three percent yesterday, as the dollar trended higher against a select band of currencies.

The Global Gold Index shed 2.79 percent, with gold for February delivery dropping $18.70 or 1.5 percent to settle at $1,199.40 an ounce on the New York Mercantile Exchange Tuesday.

In the gold space, Kinross Gold Corp. (K.TO) dropped 2.60 percent, Goldcorp Inc. (G.TO) fell 3.37 percent, Barrick Gold Corp. (ABX.TO) dived 3.48 percent, and Yamana Gold Inc. (YRI.TO) shed 3.46 percent.

Detour Gold Corp. (DGC.TO) fell 0.11 percent, while Eldorado Gold Corp. (ELD.TO) slipped 1.54 percent.

The Capped Materials Index shed 1.07 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.77 percent.

The Healthcare Index dipped 0.14 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 0.90 percent, Catamaran Corp. (CCT.TO) moved up 0.48 percent and Extendicare Inc. (EXE.TO) surrendered 2.50 percent.

The Diversified Metals & Mining Index slipped 0.13 percent, as Sherritt International Corp. (S.TO) plunged 8.85 percent, First Quantum Minerals Ltd. (FM.TO) dropped 0.22 percent, Teck Resources Limited (TCK.B.TO) surrendered 0.58 percent, and Lundin Mining Corp. (LUN.TO) shed 1.31 percent.

The Capped Industrials Index gained 1.27 percent, with Canadian National Railway (CNR.TO) up 1.48 percent, Air Canada (AC.TO) adding 2.15 percent, and SNC-Lavalin Group Inc. (SNC.TO) up 0.17 percent. Bombardier Inc. (BBD.B.TO) shed 1.14 percent.

The Information Technology Index added 0.64 percent with BlackBerry Ltd. (BB.TO) climbing 4.13 percent.

The Capped Telecommunication Index dropped 1.55 percent, as Rogers Communications Inc. (RCI.B.TO) shed 0.72 percent, TELUS Corp, (T.TO) dropped 3.42 percent, and BCE Inc. (BCE.TO) surrendered 0.90 percent.

DHX Media Ltd. (DHX.A.TO) added 5.06 percent after announcing it will acquire Nerd Corps Entertainment Inc. and its subsidiaries, for C$57 million. DHX expects the transaction to be accretive to net earnings per share for fiscal year 2015.

In economic news, construction spending in the U.S. surged 1.1 percent to an annual rate of $971.0 billion in October from the revised September estimate of $960.3 billion. Economists expected spending to increase by about 0.5 percent.

Eurozone producer prices dropped at its fastest pace in 18 months during October, pulled down by a slump in energy prices.

Eurozone producer prices fell 0.4 percent month-over-month in October, reversing a 0.2 percent rise in September, preliminary figures from Eurostat showed Tuesday. Economists had forecast a 0.3 percent decline for the month. The news adds to the deflationary woes in the euro area while strengthening the case for more action from the European Central Bank.

Elsewhere in Europe, robust performance of the British construction sector continued in November, even as the pace of growth eased to its lowest in 13 months, suggesting the trend would likely continue in the months ahead supporting economic recovery.

The seasonally adjusted construction purchasing managers' index dropped to 59.4 in November from 61.4 in the previous month, a survey by Markit Economics and the Chartered Institute of Purchasing and Logistics showed Tuesday. Economists anticipated the index to ease to 61.0.