TSX Slides As Yellen Clouds Interest Rate Outlook -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Friday morning, with Federal Reserve Chair Janet Yellen's speech at the Jackson Hole Symposium not providing much clarity about the Fed 's interest rate outlook.

Investors are largely shrugging off strong results from Royal Bank of Canada and reports showing a bigger than expected increase in Canadian retail sales.

Falling crude oil prices and concerns about geopolitical worries due to the ongoing conflicts in Ukraine and the Middle East are also weighing on the market.

The benchmark S&P/TSX Composite Index is down 47.51 points or 0.31 percent at 15,505.58, after hitting a new record high of 15,574.23 at the start. Despite this morning fall, the index looks set to record a gain of about 1.5 percent for the week.

Despite better than expected results from Royal Bank of Canada, bank stocks are a bit subdued. The Financial Index is down 0.44 percent.

Among big six banks, Royal Bank of Canada (RY.TO) is down 1.2 percent. The bank reported third-quarter net income of C$2.378 billion, up C$93 million or 4 percent from the prior year. Earnings per share was C$1.59 up from C$1.51 in the prior year. Adjusted earnings per share rose to C$1.62 from C$1.45 in the prior year.

Bank of Montreal (BMO.TO) is up marginally, while the rest are down, declining 0.3 to 0.6 percent.

The Diversified Materials Index is lower by 0.4 percent. First Quantum Minerals Ltd. (FM.TO), Lundin Mining Corporation (LUN.TO) and Nevsun Resources Ltd. (NSU.TO) are down 1.0 to 1.6 percent. Meanwhile, Capstone Mining Corp. (CS.TO) and Major Drilling Group International Inc. (MDI.TO) are up in positive territory, gaining 1.5 percent and 1.0 percent, respectively.

The Capped Materials Index is down 0.45 percent, with Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO) and Agnico Eagle Mines Limited (AEM.TO) declining 0.8 to 1.0 percent.

The Energy Index is down 0.4 percent. Canadian Natural Resources Limited (CNQ.TO), Cenovus Energy Inc. (CVE.TO), Crescent Point Energy Corp. (CPG.TO), Encana Corporation (ECA.TO), Imperial Oil Limited (IMO.TO) and Canadian Oil Sands Limited (COS.TO) are down 0.6 to 1.0 percent.

Whitecap Resources (WCP.TO) and Penn West Petroleum (PWT.TO) are lower by 1.6 percent and 1.2 percent, respectively. Meanwhile, Talisman Energy Inc. (TLM.TO) is moving up 1.6 percent.

The Information Technology Index is up 0.51 percent, with Open Text Corporation (OTC.TO) and Avigilon Corporation (AVO.TO) moving up by over 1.5 percent. BlackBerry Limited (BB.TO) is advancing 0.6 percent.

Healthcare stock Valeant Pharmaceuticals International Inc, (VRX.TO) is up 0.8 percent. A federal judge in California denied a request by Allergan Inc to expedite its civil suit that claimed Valeant and Pershing Square Capital Management indulged in insider trading ahead of their bid to buy Allergan.

In commodities, crude oil futures for October are down $0.83 or 0.88 percent at $93.13 a barrel.

Natural gas for September is down $0.022 or 0.56 percent at $3.867 per million btu.

Gold futures for December are up $5.50 or 0.43 percent at $1,280.90 an ounce.

Silver for September is up $0.022 or 0.11 percent at $19.437 an ounce. Meanwhile, copper is up $0.031 or 0.97 percent at $3.207 per pound.

In economic news, data from Statistics Canada showed Canada's retail sales to have risen for the sixth consecutive month, moving up 1.1 percent to C$42.6 billion in June. The reading was higher than forecasts of 0.3 percent, after advancing 0.7 percent last month.

Meanwhile, CPI rose 2.1 percent on year in July, following a 2.4 percent increase in June, down from a forecast for a 2.2 percent rise.

The CPI declined by 0.2 percent on month, worser than expectations for a 0.1 percent decline. The index rose 0.1 percent a month earlier. Core CPI came in at 0.1 percent in July on a monthly basis, matching consensus.

Speaking at the Jackson Hole Symposium, Federal Reserve Chair Janet Yellen said the central bank could go either way with regard to interest rates. Yellen said an increase in rates could come sooner than expected if the progress on inflation and the labor market occured more rapidly than anticipated. At the same time, future calls on rates could be more accommodative in the event of a disappointing economic performance.