TSX Ends Lower On Mining, Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a five-day winning streak to end a tad lower Thursday, with some upbeat U.S. economic data raising fears of the U.S. Fed tightening its monetary policy sooner than expected earlier.

The minutes of the Federal Reserve's most recent policy meeting hinted at some fierce debate over interest rates with some Fed members favoring a hike sooner than forecast.

Investors digested some strong U.S. economic data including a report a Labor Department report showing jobless claims to have dropped more than expected in the week ended August 16 and existing home sales unexpectedly rising to a ten-month high in July.

Meanwhile, a Conference Board report showed a bigger than expected increase of its index of leading U.S. economic indicators in July, suggesting the economy is gaining traction.

As well, the closely watched regional manufacturing activity from the Federal Reserve Bank of Philadelphia unexpectedly grew at an accelerated rate in August, with index of activity in the sector reaching a three-year high.

Nonetheless, some weak eurozone private sector growth report and a weak reading on Chinese factory activity in August weighed on the market sentiments.

Investors now look ahead to comments from Fed Chair Janet Yellen and European Central Bank President Mario Draghi at the Fed's annual Jackson Hole symposium on Friday.

Gold stocks declined sharply, tracking falling bullion prices while energy stocks are turned in a mixed performance with financial stocks edging higher.

The S&P/TSX Composite Index closed Thursday at 15,556.09, down 5.86 points or 0.04 percent. The index scaled a intraday high of 15,566.53 and a low of 15,526.01.

On Wednesday, the index ended higher after the U.S. Federal Open Market Committee maintained its interest rates, with a strong Canadian wholesale sales report lifting sentiment.

Crude oil ended higher after a slew of positive economic data from the U.S. that followed some bullish supply data yesterday.

The Energy Index gained 0.55 percent, with U.S. crude oil futures for September adding $0.51 or 0.5 percent to close at $93.96 a barrel Thursday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dipped 0.44 percent, Enbridge Inc. (ENB.TO) dropped 0.52 percent, Suncor Energy Inc. (SU.TO) moved up 0.21 percent, Encana Corp. (ECA.TO) added 0.33 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 0.58 percent.

The Healthcare Index slipped 0.51 percent with Catamaran Corp. (CCT.TO) down 0.31 percent and Extendicare Inc. (EXE.TO) down 1.37 percent, while Valeant Pharmaceuticals International, Inc. (VRX.TO) added 0.35 percent.

The Financial Index added 0.59 percent with Toronto-Dominion Bank adding 0.61 percent and Bank of Nova Scotia (BNS.TO) up 0.42 percent.

Among other major banks, Canadian Imperial Bank Of Commerce (CM.TO) added 0.94 percent, Royal Bank of Canada (RY.TO) gained 0.10 percent, and Bank of Montreal (BMO.TO) up 0.50 percent.

Among other constituents of the Financial Index, Manulife Financial Corp. (MFC.TO) added 1.73 percent after entering into an exclusive partnership with Bayshore HealthCare Ltd, to deliver a Specialty Drug Care Program.

Gold futures ended sharply lower for a fifth day in a row Wednesday, giving rise to fears of an early tightening of the monetary policy after a slew of upbeat economic data out of the U.S.

Global Gold Index plummeted 2.57 percent, with gold for December delivery shedding $19.80 or 1.5 percent to close at $1,275.40 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 0.72 percent, Eldorado Gold Corp. (ELD.TO) shed 3.23 percent, Yamana Gold Inc. (YRI.TO) slipped 3.27 percent, Barrick Gold Corp. (ABX.TO) declined 1.75 percent, Goldcorp Inc. (G.TO) dived 3.50 percent, and Detour Gold Corp. (DGC.TO) fell 3.06 percent.

The Capped Materials Index dived 1.86 percent as gold stocks stumbled, although Potash Corp. of Saskatchewan Inc. (POT.TO) advanced 0.23 percent.

The Diversified Metals & Mining Index shed 1.49 percent, with First Quantum Minerals Ltd. (FM.TO) down 2.28 percent, Lundin Mining Corp. (LUN.TO) down 0.65 percent, and Teck Resources Limited (TCK.B.TO) dropped 1.88 percent.

The Capped Industrials Index dipped 0.25 percent, with Bombardier Inc. (BBD.B.TO) up 0.53 percent, and Air Canada (AC.B.TO) down 0.90 percent.

The Capped Telecommunications Index moved up 0.11 percent, with Rogers Communications Inc. (RCI.B.TO) inching up 0.14 percent, Manitoba Telecom Services Inc. (MBT.TO) gained 0.46 percent, and BCE Inc. (BCE.TO) moving up 0.06 percent.

The Information Technology Index edged down 0.12 percent, with BlackBerry Limited (BB.TO) down 3.32 percent, Avigilon Corp. (AVO.TO) gathered 3.08 percent, and Celestica Inc. (CLS.TO) was down 0.33 percent.

The Capped Utilities Index fell 0.39 percent with Fortis Inc. (FTS.IR.TO) down 0.56 percent.

The Consumer Staples Index lost 0.24 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) down 0.39 percent, Loblaw Companies Limited (L.TO) down 0.28 percent, Jean Coutu Group (PJC) Inc. (PJC.A.TO) up 0.42 percent, and Saputo Inc. (SAP.TO) down 0.33 percent.

Whitecap Resources Inc. (WCP.TO) surged 7.79 percent, after agreeing to acquire a controlling interest in a premier conventional Nisku light sweet oil pool at Elnora, Alberta, for cash consideration of about $266.7 million.

In economic news, a report from the U.S. Labor Department showed initial jobless claims to have declined by slightly more than expected to 298,000 in the week ended August 16th, declining by 14,000 from the previous week's revised level of 312,000. Economists expected jobless claims to pull back to 300,000 from the 311,000 originally reported for the previous week.

Data from National Association of Realtors showed existing home sales unexpectedly rose to their highest annual rate of the year in July, climbing to a seasonally adjusted 5.15 million, from a downwardly revised 5.03 million in June. Economists had expected existing home sales to drop to a rate of 5.00 million.

Meanwhile, Philadelphia Federal Reserve said its index of regional manufacturing activity unexpectedly reached a new three-year high in August, rising to 28.0, from 23.9 in July.

The Conference Board's leading economic index rose by a bigger than expected 0.9 percent in July, after seeing an increase of 0.6 percent in the preceding month.

In economic news from the eurozone, private sector growth eased more-than-expected in August, with the zone's composite output index falling to 52.8, from a score of 53.8 in July, data from Markit Economics showed. The indicator was expected to fall marginally to 53.4.

Manufacturing activity in China dropped to a three-month low in August with the preliminary HSBC China Manufacturing Purchasing Managers Index dipping to 50.3. This compares with July's final reading of 51.7.