TSX Ends A Tad Lower On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks slipped for a third straight session to end a shade lower Thursday, tracking declining global equity markets, on some mixed macroeconomic data from the U.S. with some mixed earnings reports. Investors continued to weigh some weak manufacturing data out of China yesterday, and prospects of the U.S. Federal Reserve's quantitative easing program exit.

Most European and Asian stocks ended in the red, after some encouraging macroeconomic data out the U.S. and Europe renewed concerns the Federal Reserve could taper down its massive bond-buying program later this year.

The S&P/TSX Composite Index closed Thursday at 12,669.14, down 3.16 points or 0.02 percent. The index touched an intraday high of 12,705.03 and a low of 12,637.27.

The Global Gold Index gained 0.50 percent, with gold futures for August delivery gaining $9.30 or 0.7 percent to close at $1,328.80 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 0.18 percent, while Kinross Gold Corp. (K.TO) shed 0.36 percent. Barrick Gold Corp. (ABX.TO) gained 1.64 percent.

Meanwhile, Goldcorp Inc. (G.TO) shed 1.33 percent after slipping into the red in second-quarter, reporting a net loss of $1.93 billion or $2.38 per share, compared to net earnings of $268 million or $0.26 per share in the second quarter of 2012.

The Capped Materials Index added 0.16 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) giving up 2.09 percent. The fertilizer maker reported improved second-quarter net income at $643 million or $0.73 per share compared to $522 million or $0.60 per share in the same quarter last year. Analysts expected earnings of $0.81 per share for the quarter. However, the company trimmed its full-year 2013 net income forecast to a range of $2.45-$2.70 per share, down from the prior estimate of $2.75 to $3.25 per share.

The Diversified Metals & Mining Index gained 0.27 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.35 percent. Lundin Mining Corp. (LUN.TO) surrendered 0.95 percent, while Osisko Mining Corp. (OSK.TO) jumped 3.09 percent.

Base-metals miner Teck Resources Limited (TCK.B.TO) gathered 3.04 percent. Teck Resources reported a lower second-quarter profit at C$143 million or C$0.25 per share, compared to C$354 million or C$0.60 per share in the same period last year. Adjusted profit was C$197 million or C$0.34 per share compared with C$398 million or C$0.68 per share in the same period a year ago. Analysts expected the company to report earnings of C$0.31 per share and revenues of C$2.08 billion for the quarter.

The Energy Index inched up 0.05 percent, with U.S. crude oil futures for September delivery ticking up $0.10 to close at $105.49 a barrel Thursday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) slipped 0.15 percent, while Enbridge Inc. (ENB.TO) shed 0.04 percent. Canadian Natural Resources Limited (CNQ.TO) shed 0.33 percent, while Cenovus Energy Inc. (CVE.TO) gained 0.62 percent. Encana Corp. (ECA.TO) gathered 1.91 percent.

The Financial Index slipped 0.04 percent with Bank of Montreal (BMO.TO) up 0.06 percent, Royal Bank of Canada (RY.TO) up 0.18 percent, and Toronto-Dominion Bank up 0.22 percent. Bank of Nova Scotia (BNS.TO) edged down 0.03 percent, while National Bank of Canada (NA.TO) gained 0.40 percent.

The Information Technology Index gained 0.23 percent, with BlackBerry Limited (BB.TO) down 0.43 percent.

The Capped Industrials Index moved up 0.25 percent, although Bombardier Inc. (BBD.A.TO, BBD.B.TO) dropped 2.59 percent.

Precision Drilling Corp. (PD.TO) gained 4.74 percent after reporting lower second-quarter net earnings of C$0.5 million, compared with C$18 million in the same quarter last year. On a per share basis, earnings were breakeven, compared with C$0.06 last year. Analysts expected a loss per share of C$0.02 for the quarter.

Paper products company Domtar Corp. (UFS.TO) surrendered 1.62 percent after slipping into the red in second-quarter, reporting a net loss of $46 million or $1.38 per share, compared to net earnings of $59 million or $1.61 per share for the second quarter of 2012. Excluding items, the company reported earnings of $16 million or $0.48 per share compared to $33 million or $0.95 per share. Analysts expected a profit of $0.41 per share for the quarter.

Mullen Group (MTL.TO) rose 3.08 percent after reporting a much improved second quarter net income of C$27.4 million or C$0.30 per share, compared to C$7.4 million or C$0.09 per share for the year-ago quarter. Excluding items, adjusted net income was C$20.9 million or C$0.23 per share. Analysts expected earnings of C$0.14 per share for the quarter.

Wood-based panels maker Norbord Inc. (NBD.TO) gathered 5.47 percent after reporting a much improved second-quarter net income at $53 million or $0.99 a share, compared to $6 million or $0.14 a share last year. Analysts expected earnings of $0.90 per share for the quarter.

In economic news from the U.S., the Labor Department said initial jobless claims rose to 343,000, an increase of 7,000 from the previous week's revised figure of 336,000. Economists had been expecting jobless claims to climb to 341,000 from the 334,000 originally reported in the previous week.

A report from the U.S. Commerce Department showed durable goods orders to have surged 4.2 percent in June following an upwardly revised 5.2 percent jump in May. Economists expected orders to rise by 1.5 percent compared to the 3.7 percent increase that had been reported for the previous month. Excluding the 12.8 percent jump in orders for transportation equipment, durable goods orders were unchanged in June compared to a 1.0 percent increase in May.

Elsewhere, confidence among German businesses improved in July, reports citing survey results from the Ifo Institute said. The Ifo business climate index rose to 106.2 in July from 105.9 in June. Economists expected the index to rise to 106.1. The current conditions index advanced to 110.1 in July from 109.4 in June. This was expected to rise modestly to 109.7. The expectations index, however, dropped slightly to 102.4 from 102.5 in June.

Eurozone money supply growth eased unexpectedly in June, and the decline in loans to private sector worsened further, official data revealed. According to the European Central Bank, M3 money supply grew only 2.3 percent annually, slower than last month's 2.9 percent increase and the expected 3 percent growth.

The U.K. economy expanded at a faster pace as expected in the second quarter on a widespread support from production, construction and services. The GDP doubled to 0.6 percent from 0.3 percent in the first quarter, preliminary estimate published by the Office for National Statistics showed. The growth rate matched expectations.