Miners, Industrials Lift TSX To Record High -- Canadian Commentary

By RTT News, 

(RTTNews.com) - Canadian stocks are on the rise Tuesday morning, led by gains in mining and industrial stocks, as investors react to some strong earnings reports.

Energy stocks are moving up after a recent upswing in crude oil prices.

Besides some upbeat results from U.S. companies, an impressive earnings report from Canadian National Railway is also aiding sentiment.

U.S. tech giants Apple, Microsoft are set to release earnings results today, while Facebook results will be made public on Wednesday.

Investors are also reacting positively to a report from the U.S. Labor Department that showed consumer price inflation to have moved up 0.3 percent in June, in line with expectations.

The benchmark S&P/TSX Composite Index has hit a new high at 15,325.21, gaining 75.22 points or 0.49 percent.

On Monday, the index ended down 16.58 points or 0.11 percent at 15,249.99 on Monday, after scaling a high of 15,266.37 and a low of 15,208.84 intraday.

In corporate news, Canadian National Railway Company (CNR.TO) announced Monday that it posted second quarter net income C$847 million, or C$1.03 per diluted share, compared with net income of C$717 million, or C$0.84 per diluted share, for the year ago quarter. The stock is moving up 2.3 percent.

Among other stocks in the Industrial Index, which is up 1.3 percent, Canadian Pacific Railway Limited (CP.TO) is adding nearly 2 percent, while Finning International Inc. (FTT.TO) and CAE Inc. (CAE.TO) are rising 1.3 percent and 1.5 percent, respectively.

The Diversified Mining & Metals Index is up nearly 2 percent. Major Drilling Group International Inc. (MDI.TO) is climbing over 7 percent. HudBay Minerals Inc. (HBM.TO) is moving up over 5 percent. Sherritt International Corporation (S.TO) and Capstone Mining Corp. (CS.TO) are both higher by over 3.5 percent.

Meanwhile, First Quantum Minerals Ltd. (FM.TO), Lundin Mining Corporation (LUN.TO) and Nevsun Resources Ltd. (NSU.TO) are higher by 1.5 to 2 percent.

The Energy Index is rising 0.75 percent, with Suncor Energy Inc. (SU.TO), Canadian Natural Resources Limited (CNQ.TO), Crescent Point Energy Corp. (CPG.TO), Canadian Oil Sands Limited (COS.TO) and Husky Energy Inc. (HSE.TO) gaining 1 to 2 percent.

PrairieSky Royalty Ltd. (TSX.TO), a new entity that came into being after Encana Corp. (ECA.TO) chose to separate a big chunk of its royalty lands, reported a net profit of $23.9 million or 18 cents per share for the period ended June 30. The stock is advancing 2.7 percent.

Among big six banks, Royal Bank of Canada (RY.TO) is declining 0.7 percent, while the rest are up in positive territory, gaining 0.5 to 1 percent.

Gold stocks are weak, tracking lower bullion prices. Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Agnico Eagle Mines Limited (AEM.TO), Yamana Gold Inc. (YRI.TO), Kinross Gold Corporation (K.TO) and Eldorado Gold Corporation (ELD.TO) are down 1 to 2 percent.

In commodities, crude oil prices are down amid slightly easing worries about Ukraine after the pro-Russian separatists handed over the flight recorder boxes of the Malaysian Airlines passenger jet that crashed in eastern Ukraine last week.

Crude oil futures for September are up $0.15 or 0.16 percent at $104.70 a barrel.

Natural gas is down $0.024 or 0.61 percent at $3.826 per million btu.

Gold futures for August are down $7.70 or 0.59 percent at $1,306.20 an ounce.

Silver for September is down $0.039 or 0.19 percent at $20.973 an ounce. Meanwhile, copper is down $0.10 or 0.32 percent at $3.209 per pound.

Looking closer at this morning's U.S. inflation report, the Labor Department said consumer prices rose a seasonally adjusted 0.3 percent in June on higher gasoline prices, after rising 0.4 percent in May. That was in line with forecasts.

Excluding food and energy prices, core consumer prices inched up by 0.1 percent in June after rising by 0.3 percent in the previous month. Economists had expected core prices to edge up by 0.2 percent.

With the rise in inflation coming about due largely to volatile gas prices, it now remains to be seen as to whether the Federal Reserve would take a decision to hike interest rates anytime sooner than forecast.

For comments and feedback: contact editorial@rttnews.com


This article appears in: News Headlines

Referenced Stocks: AAPL , ABX , AEM , CAE , CNI

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