Canadian Stocks Are Recovering Some Lost Ground - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is trading modestly to the upside Thursday morning, following yesterday's sharp sell-off. Global equity markets are in recovery mode as investors step in to buy stocks at cheaper prices.

After a weak start to the day, the majority of the European markets are trading in the green Thursday. The European Central Bank left its interest rates as well as its forward guidance unchanged on Thursday for a third consecutive policy session and reaffirmed that the its massive asset purchase program would end in December.

Markets on Wall Street climbed in early trade Thursday, but have since begun to pare those gains. Bargain hunting contributed to the early recovery, following the recent sell-off in the markets. A positive reaction to better than expected earnings from companies like Microsoft, Twitter and Tesla helped to fuel the early gains.

The benchmark S&P/TSX Composite Index is up 62.08 points or 0.42 percent at 14,971.21.

On Wednesday, the index closed down by 376.04 points or 2.46 percent, at 14,909.13. The index scaled an intraday high of 15,295.68 and a low of 14,900.37.

The Capped Information Technology Index is gaining 1.75 percent. BlackBerry (BB.TO) is rising 2.77 percent and Sierra Wireless (SW.TO) is up 0.29 percent. Constellation Software (CSU.TO) is higher by 0.38 percent.

The Energy Index is rising 1.66 percent. Encana (ECA.TO) is up 3.22 percent and Crescent Point Energy (CPG.TO) is gaining 11.28 percent. Suncor Energy (SU.TO) is advancing 1.24 percent and Enbridge (ENB.TO) is adding 0.39 percent. Cenovus Energy (CVE.TO) is increasing 1.10 percent and Canadian Natural Resources (CNQ.TO) is climbing 2.36 percent. Imperial Oil (IMO.TO) is up 1.10 percent.

Husky Energy Inc. (HSE.TO) is falling 0.21 percent after it reported third quarter earnings of $545 million, up sharply from $136 million in the same quarter last year. On an adjusted basis, the company said that it earned 57 cents per share in the quarter, up from 14 cents per share in the same quarter last year.

The Capped Telecommunication Services Index is up 0.71 percent. BCE (BCE.TO) is higher by 0.11percent and TELUS (T.TO) is gaining 0.44 percent. Rogers Communications Inc. (RCI.B.TO) is rising 0.90 percent

The Capped Industrials Index is up 0.41 percent. Canadian Pacific Railway (CP.TO) is rising 0.25 percent and Finning International (FTT.TO) is advancing 1.29 percent. Air Canada (AC.TO) is climbing 2.07 percent and WestJet Airlines (WJA.TO) is adding 0.21 percent.

The heavyweight Financial Index is increasing 0.23 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.64 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.04 percent. National Bank of Canada (NA.TO) is higher by 0.22 percent.

The Gold Index is decreasing 2.62 percent. Kinross Gold (K.TO) is lower by 3.05 percent and Goldcorp (G.TO) is losing 13.98 percent. IAMGOLD (IMG.TO) is down 2.79 percent and B2Gold (BTO.TO) is weakening by 1.99 percent. Yamana Gold (YRI.TO) is falling 3.53 percent and Eldorado Gold (ELD.TO) is surrendering 1.75 percent.

Barrick Gold (ABX.TO) is declining 3.11 percent after is reported lower earnings for the third quarter.

The Capped Materials Index is down 1.31 percent. Agnico Eagle Mines (AEM.TO) is falling 0.48 percent and Franco-Nevada (FNV.TO) is surrendering 0.79 percent.

Precision Drilling Corp. (PD.TO) is falling 2.96 percent after it reported that its third-quarter net loss widened to C$31 million or $0.10 per share from net loss of C$26 million or $0.09 per share in the third quarter of 2017. The company reported a revenue of C$382 million for the quarter, an increase of 22% over the prior year comparative quarter.

Maple Leaf Foods Inc. (MFI.TO) is losing 4.24 percent after it reported adjusted earnings of $26.6 million for the third quarter of 2018, as compared to $37.6 million in the year-ago quarter. Basic Earnings per dropped to $0.21 in the third quarter, from $0.29 a year ago.

Teck Resources Ltd (TECK.B.TO) is down 5.35 percent after it reported a fall of nearly 25% in its third quarter adjusted earnings.

On the economic front, Germany's business sentiment weakened for the second straight month in October on geopolitical tensions, survey data from the Mannheim-based Ifo institute showed Thursday. The business climate index fell more-than-expected to 102.8 in October from 103.7 in September. The expected score was 103.2.

After reporting a slight drop in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department released a report on Thursday showing a modest rebound in initial jobless claims in the week ended October 20th.

The report said initial jobless claims crept up to 215,000, an increase of 5,000 from the previous week's unrevised level of 210,000. Economists had expected jobless claims to inch up to 214,000.

New orders for U.S. manufactured durable goods unexpectedly increased in the month of September, according to a report released by the Commerce Department on Thursday. The report said durable goods orders climbed by 0.8 percent in September after surging up by 4.6 percent in August. Economists had expected orders to drop by 0.9 percent.

In commodities, crude oil futures for November delivery are up 0.38 or 0.57 percent at $67.20 a barrel.

Natural gas for November is up 0.027 or 0.85 percent at $3.193 per million btu.

Gold futures for December are up 2.00 or 0.16 percent at $1,233.10 an ounce.

Silver for December is down 0.026 or 0.18 percent at $14.65 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2947700/canadian-stocks-are-recovering-some-lost-ground-canadian-commentary.aspx)

For comments and feedback: contact editorial@rttnews.com

This article appears in: Stocks , World Markets , Banking and Loans , Economy , US Markets , Oil
Referenced Symbols: ABX ,

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