TSX Rises As Energy Stocks Rebound -- Canadian Commentary

By RTT News, 
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(RTTNews.com) - Canadian stocks are higher Tuesday mid morning, adding to recent gains on the back of an upbeat U.S. durable goods order data.

U.S. durable goods orders rose by a more than expected 22.6 percent in July, although excluding transportation, orders fell 0.8 percent in the month.

Investors are closely watching the developments in Ukraine and the Middle East. Markets are looking ahead to the meeting of Ukrainian President Petro Poroshenko and Russian President Vladimir Putin at a summit in Minsk in Belarus.

According to reports, the Ukrainian forces have captured some Russian soldiers near the Donetsk region. In the Gaza Strip, Israel has stepped up pressure on Hamas, bombing two high-rises in the city.

Miners and energy stocks are leading the charge up north, supported by key stocks from consumer discretionary and telecom sectors.

The benchmark S&P/TSX Composite Index is up 32.96 points or 0.21 percent at 15,631.70, after rising to a new intraday high at 15,653.38.

On Monday, the index ended up 63.19 points or 0.41 percent at 15,598.74, a new all-time closing high.

Among big six banks, Bank of Nova Scotia (BNS.TO) is lower by over 2 percent, despite reporting a 35 percent rise in third-quarter net income to C$2.35 billion, from C$1.75 billion last year. Quarterly earnings per share were C$1.85, compared with C$1.36 in the same period a year ago.

Bank of Montreal (BMO.TO) is moving up 0.8 percent. The bank reported adjusted third quarter net income of C$1.162 billion, up C$40 million or 4 percent from a particularly strong third quarter a year ago. Adjusted earnings per share were C$1.73, up 4 percent from C$1.66 a year ago.

Toronto-Dominion Bank (TD.TO), Canadian Imperial Bank Of Commerce (CM.TO) and Royal Bank of Canada (RY.TO) are declining 0.4 to 0.8 percent, while National Bank of Canada (NA.TO) is little changed from previous closing price.

The Energy Index is up 0.9 percent. Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), Encana Corporation (ECA.TO), Canadian Oil Sands (COS.TO) and ARC Resources (ARX.T) are advancing 0.6 to 1.0 percent, while Canadian Natural Resources Limited (CNQTO), Whitecap Resources Inc. (WCP.TO) and Twin Butte Energy Ltd. (TBE.TO) are rising 1.5 to 2.3 percent.

The Diversified Metals Index is up 0.7 percent, with First Quantum Minerals Ltd. (FM.TO), Turquoise Hill Resources Ltd. (TRQ.TO), Sherritt International Corporation (S.TO), Capstone Mining Corp. (CS.TO) and Major Drilling Group International Inc. (MDI.TO) rising 1.2 to 4.0 percent.

Gold stocks are up on higher bullion prices. The Capped Materials Index that has several gold stocks in its fold, is up 0.75 percent.

Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO) and Franco-Nevada Corporation (FNV.TO) are up 0.8 to 1.0 percent, while Agnico Eagle Mines Limited (AEM.TO) and Yamana Gold Inc. (YRI.TO) are up 1.7 percent and 1.8 percent, respectively. B2Gold Corp. (BTO.TO) is rising over 3 percent and Eldorado Gold Corporation (ELD.TO) is adding 2.5 percent.

The Consumer Discretionary Index is up 0.65 percent, lifted by Tim Hortons Inc. (THI.TO) which has surged up 8.5 percent, with Burger King Worldwide Inc. set to acquire the company in a deal worth US$11 billion. According to reports, Burger King will pay C$65.50 in cash and 0.8025 common shares of the new company for each Tim Hortons share.

Telecom stocks BCE Inc. (BCE.TO), TELUS Corporation (T.TO), Bell Aliant Inc. (BA.TO) and Manitoba Telecom Services Inc. (MBT.TO) are up 0.3 to 0.7 percent.

Agrium Inc. (AGU.TO) is up 0.3 percent. Agrium's subsidiary Loveland Products said it has acquired a controlling interest in Agricen, a Dallas-area agricultural biotechnology company engaged in delivering biochemical-based products for efficient and sustainable plant nutrition.

In commodities, crude oil futures for October are up $0.75 or 0.80 percent at $94.10 a barrel, ahead of inventories.

Natural gas for October is up marginally at $3.986 per million btu.

Gold futures for December are up $5.30 or 0.41 percent at $1,284.20 an ounce.

Silver for December is up $0.097 or 0.5 percent at $19.528 an ounce. Meanwhile, copper is down $0.012 or 0.36 percent at $3.225 per pound.

In economic news from the U.S., a report from the Labor Department showed durable goods orders to have surged up by a much better than expected 22.6 percent in July, lifted by a record number of contracts for new jets from Boeing. However, excluding transportation, orders slumped 0.8 percent, against forecasts for an increase of 0.4 percent.

Meanwhile, a report released by the Conference Board showed consumer confidence in the U.S. to have improved for the fourth consecutive month in August, with the index jumping to 92.4, the highest level since October 2007, from a revised 90.3 in July.

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This article appears in: News Headlines

Referenced Stocks: ABX , AEM , AGU , BA , BCE

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