TSX Succumbs After Decent Start, Set For Weekly Loss -- Canadian Commentary

(RTTNews) - After a flat start, Canadian stocks are drifting lower Friday mid morning amid slew of mixed U.S. economic data including a somewhat downbeat U.S. monthly jobs report.

Geopolitical tensions and concerns about the European banking system, along with the news about Argentina missing a debt repayment deadline are weighing on the market.

U.S. unemployment unexpectedly edged up to 6.2 percent in the month even as the economy generated 209,000 jobs. This was shy of the 235,000 new jobs predicted by economists.

However, the data does cement expectations the Federal Reserve will hold the interest rates at current levels for an extended period.

The benchmark S&P/TSX Composite Index is down 114.95 points or 0.75 percent at 15,215.79. The index now looks set to shed over 1.5 percent this week.

On Thursday, the index closed down 194.09 points or 1.25 percent at 15,330.73, snapping a seven-day winning streak, on declining global equity markets.

Energy stock Canadian Oil Sands Ltd (COS.TO) is up nearly 1 percent. On Thursday the company reported second-quarter net earnings of C$176 million or C$0.36 per share, compared with C$219 million or C$0.45 per share last year.

Mid-streak oil stock Enbridge Inc. (ENB.TO) is up 0.4 percent. The company reported second-quarter earnings of C$756 million or C$0.91 per share, up from C$42 million or C$0.05 per share, a year ago. Adjusted earnings was C$328 million or C$0.40 per share, for the quarter.

Among other stocks in the energy sector, Suncor Energy Inc. (SU.TO) and Canadian Natural Resources Limited (CNQ.TO) are declining 1 percent and 0.8 percent, respectively. Meanwhile, Talisman Energy (TLM.TO) and ARC Resources (ARX.T) are advancing by over 0.5 percent.

Healthcare stock Catamaran Corp. (CCT.TO) is rising 2.5 percent after reporting second-quarter net income of $71.4 million or $0.34 per share up from $63.4 million, or $0.31 per share in the same quarter last year. Adjusted earnings per share increased 10 percent to $0.54 per share from $0.49 per share last year.

Among other key stocks in the healthcare space, Valeant Pharmaceuticals International, Inc. (VRX.TO) is moving up 2.3 percent and Extendicare Inc. (EXE.TO) is up 0.3 percent.

Telecom stock Bell Aliant Inc. (BA.TO) is up 0.75 percent after reporting net earnings of $72 million for the second quarter, compared to net earnings of $66 million in the corresponding quarter last year.

Shares of power generator Fortis Inc. (FTS.TO) are down 0.5 percent. The company reported second quarter net earnings attributable to common equity shareholders of $47 million, or $0.22 per common share, compared to $54 million, or $0.28 per common share, for the same quarter last year.

Among miners, Lundin Mining Corporation (LUN.TO) and Nevsun Resources (NSU.TO) are moving up more than 3 percent. Major Drilling Group International Inc. (MDI.TO), Teck Resources Limited (TCK.B.TO) and Turquoise Hill Resources Ltd. (TRQ.TO) are advancing 0.5 to 1.2 percent. Meanwhile, Turquoise Hill Resources Ltd. (TRQ.TO) is down 1.3 percent.

Gold stocks are bouncing back, with the bullion surging higher, snapping recent losses. Eldorado Gold Corporation (ELD.TO) is climbing nearly 6 percent after reporting adjusted second quarter net earnings of $35.9 million, compared to $48.2 million in the year ago quarter.

Detour Gold Corporation (DGC.TO) is moving up 4.5 percent. Goldcorp Inc. (G.TO) and Yamana Gold Inc. (YRI.TO) are rising 1.7 percent and 2.0 percent, respectively, while Barrick Gold Corporation (ABX.TO), Silver Wheaton Corp. (SLW.TO), Franco-Nevada Corporation (FNV.TO) and Kinross Gold Corporation (K.TO) are gaining 0.5 to 1.0 percent.

The Financial Index is lower by 1.1 percent, with the big six banks posting losses between 0.6 percent and 1.3 percent.

Manulfie Financial Corporation (MFC.TO), Sun Life Financial Inc. (SLF.TO) and Power Corporation of Canada (POW.TO) are notably lower, while Fairfax Financial Holdings (FFH.TO) is bucking the trend and moving up nearly 2 percent.

The Information Technology Index is down 0.5 percent, with CGI Group Inc. (GIB.A.TO), BlackBerry Limited (BB.TO), Celestica Inc. (CLS.TO), Descartes Systems Group Inc. (DSG.TO) and Avigilon Corporation (AVO.TO) declining by 0.5 to 1.5 percent.

In commodities, crude oil futures are down on demand concerns. Crude oil futures for September are down $0.86 or 0.88 percent at $97.31 a barrel, near a six-month low.

Natural gas for September is up $0.011 or 0.30 percent at $3.853 per million btu.

Gold futures for December are up $14.00 or 1.10 percent at $1,296.80 an ounce.

Silver for September is up $0.075 or 0.37 percent at $20.487 an ounce. Meanwhile, copper is down marginally at $3.225 per pound.

In economic news from the U.S., a report from the Labor Department showed that a less than expected 209,000 jobs were added in July. The consensus estimate called for an addition of 233,000 jobs after non-farm payrolls expanded by 288,000 in the previous month.

Meanwhile, unemployment edged up to a seasonally adjusted 6.2 percent in July, from 6.1 percent in the previous month.

A report from the U.S. Commerce Department showed personal income and spending to have increased in line with economist estimates in the month of June. The report said personal income increased by 0.4 percent in June, matching the increase seen in the previous month. Personal spending rose by 0.4 percent in June following an upwardly revised 0.3 percent increase in May.

Data from Thomson Reuters and the University of Michigan showed U.S. consumer sentiment to have deteriorated by less than previously estimated in the month of July, with the final reading coming in at 81.8, compared to the mid-month reading of 81.3.

Meanwhile, a report from the Institute for Supply Management showed that activity in the manufacturing sector expanded at a notably faster rate in the month of July, with the ISM Purchasing Managers Index climbing to 57.1 in the month, up from 55.3 in June. =