TSX Ends Lower Over Ukraine Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session Tuesday, with investors treading cautiously after deadly clashes between pro-Russian militia and Ukrainian armed forces in eastern Ukraine.

A downward revision in global economic forecast by the Organization for Economic Co-operation and Development also appears to be weighing on the market, even as investors reacted to a slew of earnings reports.

The situation in eastern Ukraine appears to be turning into a war, with fighting between government forces and pro-Russian militia continuing to escalate amid reports that some 30 pro-Russia fighters have been killed. The Ukraine Government confirmed the death of 14 of its soldiers with at least 66 others injured in fighting over the last two days.

The S&P/TSX Composite Index closed Tuesday at 14,612.29, down 84.74 points or 0.58 percent. The index scaled an intraday high of 14,697.03 and a low of 14,593.61.

On Monday, the index ended lower snapping a four-session gain, on some weak manufacturing activity data from China indicating a possible economic slowdown.

Crude oil ended a tad higher on ahead of the official weekly inventories report with increasing concerns over the escalating violence in Ukraine.

The Energy Index dropped 0.24 percent, with U.S. crude oil futures for June delivery inching up $0.02 to close at $99.50 a barrel Tuesday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) dropped 0.81 percent, Husky Energy Inc. (HSE.TO) down 0.48 percent and Canadian Natural Resources Ltd. (CNQ.TO) down 1.23 percent. Suncor Energy Inc. (SU.TO) gained 0.77 percent, while Canadian Oil Sands Limited (COS.TO) surrendered 1.39 percent.

The Capped Healthcare Index plummeted 2.45 percent as Catamaran Corp. (CCT.TO) dropped 2.60 percent, and Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 2.83 percent.

Gold futures ended a tad lower even as investors sought the safe haven appeal of the precious metal on concerns over the situation in eastern Ukraine.

The Global Gold Index dropped 0.90 percent, with gold futures for June delivery slipping $0.70 or 0.1 percent to close at $1,308.60 an ounce Tuesday on the Nymex.

Yamana Gold Inc. (YRI.TO) dropped 1.23 percent, Kinross Gold Corp. (K.TO) slipped 1.33 percent, and Osisko Mining Corp. (OSK.TO) dipped 0.12 percent. Barrick Gold Corp. (ABX.TO) slipped 0.68 percent, while Agnico Eagle Mines Limited (AEM.TO) gained 0.63 percent.

The Capped Materials Index fell 0.77 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.63 percent.

The Financial Index slipped 0.48 percent with the Toronto-Dominion Bank (TD.TO) down 0.61 percent, Royal Bank of Canada (RY.TO) down 0.14 percent, and The Bank of Nova Scotia (BNS) down 0.14 percent. Bank of Montreal (BMO.TO) dropped 0.39 percent, while National Bank of Canada (NA.TO) dipped 0.15 percent.

The Diversified Metals & Mining Index declined 0.94 percent, with Lundin Mining Corp. (LUN.TO) down 0.72 percent, First Quantum Minerals Ltd. (FM.TO) down 1.25 percent, and Teck Resources Limited (TCK.B.TO) down 0.53 percent.

The Information Technology Index dived 2.08 percent, with BlackBerry Limited (BB.TO) down 3.92 percent.

Among other tech stocks, Constellation Software Inc (CSU.TO) dropped 3.83 percent, Celestica Inc. (CLS.TO) slipped 2.05 percent, and Avigilon Corp. (AVO.TO) dropped 2.39 percent.

The Capped Industrials Index surrendered 0.50 percent, with Bombardier Inc. (BBD.B.TO) ending flat at $4.11 a share, while Air Canada (AC.B) jumped 5.88 percent.

In corporate news, WestJet Airlines Ltd. (WJA.TO) shed 2.20 percent after reporting net earnings of C$89.3 million or C$0.69 per share for first quarter 2014, compared to C$91.1 million or C$0.68 per share in the first quarter last year.

BCE Inc. (BCE.TO) surrendered 0.94 percent after reporting adjusted net earnings of C$626 million, or C$0.81 per share for the first quarter of 2014, up from net earnings of C$599 million, or C$0.77 for first quarter last year.

George Weston Ltd. (WN.TO) dropped 0.20 percent, after reporting a first-quarter net profit of $109 million, down 32.7 percent from $162 million in the same quarter of 2013.

Argonaut Gold Inc (AR.TO) gained 1.24 percent, with the company reporting net income of $2.8 for the first quarter, compared to $11.6 for the same quarter last year.

Bellatrix Exploration Ltd (BXE.TO) added 0.82 percent after reporting a net profit of $0.15 per share for the first quarter 2014, compared to $0.04 per share for the same quarter last year.

Solium Capital Inc (SUM.TO) shares jumped 6.27 percent after reporting net earnings of $4.6 million for the first quarter of 2014, up 71% from the previous year.

Wajax Corp (WJX.TO) dived 5.12 percent, after reporting basic earnings of $0.40 per share for the first quarter, down from $0.62 per share for the same period last year.

Zcl Composites Inc (ZCL.TO) gained 3.86 percent after reporting first quarter net income of $1.4 million or $0.05 per share, down $1.2 million or 46% from $2.5 million or $0.09 per share last year.

In economic news, Statistics Canada said the country's trade surplus dropped sharply to C$79 million in March from C$847 million in February, with exports dropping while imports reached a record high. Exports for March dropped 1.4 percent to C$42.7 billion as shipments of energy products slipped, while imports moved up 0.4 percent to C$42.6 billion on increased shipments of chemicals, plastic and rubber products.

In economic news from the U.S., trade deficit fell 3.6 percent to $40.4 billion in March. Economists expected trade balance to narrow to $40.5 billion from $42.3 billion in February.

From Europe, Germany's service sector expanded for the eleventh successive month in April, although at a slightly slower pace than expected earlier, with broad-based improvement in activity, final survey data from Markit Economics showed Tuesday. The Markit Germany Services Purchasing Managers' Index for April climbed to a two-month high of 54.7 from a five-month low of 53 in March. The final score was below the flash estimate of 55.

Euro area retail trade increased in March, driven by food product sales suggesting strong support to economic growth from consumer spending in the first quarter. Retail sales volume gained 0.3 percent from February, when sales grew 0.1 percent, which was revised down from a 0.4 percent gain, figures from Eurostat showed Tuesday. Sales increased for the third consecutive month in March. Economists had forecast a 0.2 percent fall.

British service sector grew at the fastest pace thus far this year during April, as increased activity and new business as well as better future prospects prompted firms to hire aggressively, survey data from Markit Economics showed Tuesday. The Markit/Chartered Institute of Purchasing & Supply U.K. Services Purchasing Managers' Index climbed to 58.7 from 57.6 in March. The score exceeded economists' projection of 57.8.

Meanwhile, the Organization for Economic Co-operation and Development's projected that the global economy will expand 3.4 percent in 2014, weaker than the 3.6 percent growth estimated in November. The OCED now expects U.S. economy to grow 2.6 percent in 2014 and 3.5 percent in 2015.