Miners Drag TSX Lower, Scotiabank Gains On Earnings -- Canadian Commentary

By RTT News, 
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(RTTNews.com) - Canadian stocks are lower Tuesday morning, as heavy selling in the mining section offset some upbeat economic data from the U.S. and strong earnings report from Scotiabank.

Energy stocks are notably lower, hurt by weak crude oil prices. Gold stocks are declining, tracking lower bullion prices.

The benchmark S&P/TSX Composite Index is down 49.75 points or 0.34 percent at 14,665.94.

On Monday, the index ended marginally up at 14,715.69.

In corporate news, Bank of Nova Scotia (BNS.TO) posted 14.0 percent higher second-quarter net income of C$1.8 billion, compared with C$1.58 billion, in the year-ago quarter. Net incone attributable to common shareholders grew year-over-year to C$1.7 billion, from C$1.47 billion. The bank also announced up to 12 million stock repurchase. The stock is up 1.2 percent.

Among other bank stocks, National Bank of Canada (NA.TO) is modestly higher ahead of results.Toronto-Dominion Bank (TD.TO) and Bank of Montreal (BMO.TO) are also modestly higher, while Canadian Imperial Bank of Commerce (CM.TO) and Royal Bank of Canada (RY.TO) are flat.

Valeant Pharmaceuticals International, Inc.'s (VRX.TO) shares are down over 2.5 percent following an announcement from Allergan Inc. ( AGN ) that it has filed an investor presentation with the SEC detailing its initial concerns about the sustainability of Valeant Pharmaceuticals' business model.

Lightstream Resources Ltd. (LTS.TO) shares are up more than 3 percent after the company agreed to sell a non-core asset for C$98 million.

Energy stocks Suncor Energy Inc. (SU.TO), Canadian Natural Resources Limited (CNQ.TO), Cenovus Energy Inc. (CVE.TO), Encana Corporation (ECA.TO)Imperial Oil Limited (IMO.TO), Canadian Oil Sands Limited (COS.TO) and ARC Resources Ltd. (ARX.TO) are down 0.5 to 1.2 percent.

Among gold stocks, Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Turquoise Hill Resources Ltd. (TRQ.TO), Silver Wheaton Corp. (SLW.TO), Franco-Nevada Corporation (FNV.TO), Osisko Mining Corporation (OSK.TO) and Yamana Gold Inc. (YRI.TO) are declining 1 to 3.5 percent. B2Gold Corp. (BTO.TO) is plunging nearly 5 percent.

Among the notable gainers, Sherritt International Corporation (S.TO) and Amaya Gaming Group Inc. (AYA.TO)are up 5.8 percent and 3.7 percent, respectively.

In commodities, crude oil futures for July are down $0.15 or 0.14 percent at $104.20 a barrel.

Natural gas for July is up $0.70 or 1.60 percent at $4.476 per million btu.

Gold futures for August are down $22.30 or 1.73 percent at $1,269.60, looking headed for its lowest levels in over 3 months.

Silver for July is down $0.325 or 1.67 percent at $19.093 an ounce. Meanwhile, copper is up $0.010 or $0.31 percent at $3.177 per pound.

In the currency market, the Canadian loonie is trading at 1.0867 against the U.S. dollar, down marginally from previous close.

In economic news, the data released by the U.S. Commerce Department showed that durables goods orders rose 0.8 percent in April, from un upwardly revised 3.6 percent rise in March, boosted by a notable increase in demand for military hardware. Excluding defense, new orders fell 0.8% in April.

Excluding an increase in orders for transportation equipment, durable goods orders edged up by a more modest 0.1 percent in April.

According to a report from Standard & Poor's, home prices in major U.S. metropolitan areas rose by a more than expected 1.2 percent in March, following a 0.8 percent increase in February. Economists had expected the index to rise by about 0.7 percent.

On a non-seasonally adjusted basis, the index climbed by 0.9 percent in March after coming in unchanged in the previous month.

A report from the Conference Board said U.S. consumer confidence improved in line with estimates, rising to 83.0 in May, from a downwardly revised 81.7 in April. Economists had been expecting the index to edge up to 83.0 from the 82.3 originally reported for the previous month.

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This article appears in: News Headlines

Referenced Stocks: ABX , AGN , BMO , BNS , CM

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