Canadian Stocks Have Turned Positive After Weak Start - Canadian Commentary

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(RTTNews.com) - The Canadian stock market opened slightly lower Friday morning, but has since climbed into positive territory. Commodity prices are little changed this morning, leaving investors to focus on the numerous corporate earnings reports that have been hitting the wires.

Markets on Wall Street are struggling in early trade Friday, despite the strong U.S. GDP report. A mixed batch of corporate earnings is weighing on investor sentiment.

Meanwhile, markets in Europe are trading slightly to the upside Friday, following a large number of corporate earnings reports.

The benchmark S&P/TSX Composite Index is up 18.65 points or 0.11 percent at 16,474.38.

On Thursday, the index closed up by 34.97 points or 0.21 percent, at 16,455.73. The index scaled an intraday high of 16,480.57 and a low of 16,364.25.

The Capped Healthcare Index is higher by 1.60 percent.

The Energy Index is rising 0.36 percent. Crude oil prices are nearly flat Friday morning, hovering just below $70 a barrel

Suncor Energy (SU.TO) is higher by 1.05 percent and Husky Energy (HSE.TO) is increasing 1.24 percent. Canadian Natural Resources (CNQ.TO) is up 0.11 percent and Enbridge (ENB.TO) is gaining 0.87 percent. Encana (ECA.TO) is climbing 1.22 percent.

Imperial Oil (IMO.TO) is falling 2.16 percent. The company reported second quarter results and declared a quarterly dividend of $0.19 per share.

The Capped Industrials Index is up 0.37 percent. Canadian Pacific Railway (CP.TO) is advancing 0.18 percent and WestJet Airlines (WJA.TO) is adding 0.52 percent.

Air Canada (AC.TO) is gaining 1.79 percent after its second quarter profit exceeded expectations.

The Capped Materials Index is up 0.43 percent. Nutrien (NTR.TO) is climbing 0.71 percent.

The heavyweight Financial Index is increasing 0.24 percent. Royal Bank of Canada (RY.TO) is rising 0.23 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.07 percent. National Bank of Canada (NA.TO) is up 0.20 percent and Toronto-Dominion Bank (TD.TO) is gaining 0.42 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.07 percent and Bank of Montreal (BMO.TO) is higher by 0.28 percent.

The Capped Information Technology Index is losing 2.30 percent. BlackBerry (BB.TO) is falling 0.97 percent and Sierra Wireless (SW.TO) is weakening by 0.51 percent. Descartes Systems Group (DSG.TO) is down 1.50 percent.

Constellation Software (CSU.TO) is sinking 7.15 percent after it reported second quarter earnings and declared a $1.00 per share dividend.

Eldorado Gold Corporation (ELD.TO) reported a loss of $24.4 million ($0.03 per share), attributable to shareholders for the second quarter, compared to a profit of $11.2 million, (or $0.02 per share) in the second quarter of 2017. The stock is rising 2.92 percent.

Nevsun Resources Ltd. (NSU.TO) reported net loss of $9.4 million for the second quarter, up from net loss of $3.8 million in the year-ago quarter. Shares are slipping 0.31 percent.

Aecon Group Inc. (ARE.TO) reported revenue of $755 million for the three months ended June 30, 2018, up by $69 million, or 10%, compared to the second quarter of 2017. The stock is climbing 4.25 percent.

On the economic front, Germany's import prices grew at the fastest pace in more than a year in June, figures from Destatis revealed Friday.

Import prices advanced 4.8 percent year-on-year in June, faster than the 3.2 percent increase seen in May and the expected 4.5 percent. This was the third consecutive increase and the fastest since April 2017, when prices gained 6.1 percent.

At the same time, export price inflation came in at 1.8 percent, following May's 1.3 percent. On a monthly basis, export prices climbed 0.3 percent, slower than May's 0.5 percent growth.

France's economy grew less-than-expected in the second quarter, largely reflecting weak household consumption.

Gross domestic product grew 0.2 percent sequentially, the same pace of growth as seen in the first quarter, first estimate from the statistical office Insee showed Friday. The pace of growth was forecast to improve to 0.3 percent.

French consumer spending increased for the second straight month in June, though marginally, survey data from the statistical office Insee showed Friday.

Consumer spending edged up 0.1 percent month-over-month in June, slower than the 1.0 percent rise in May, which was revised up from 0.9 percent. That was also below the 0.6 percent gain economists had forecast.

Economic growth in the U.S. saw a significant acceleration in the second quarter, according to a report released by the Commerce Department on Friday. The report said real gross domestic product jumped by 4.1 percent in the second quarter following a 2.2 percent increase in the first quarter. Economists had expected GDP to surge up by 4.2 percent.

Consumer sentiment in the U.S. deteriorated by less than initially estimated in the month of July, the University of Michigan revealed in a report released on Friday. The report said the consumer sentiment index for July was upwardly revised to 97.9 from the preliminary reading of 97.1. Despite the upward revision, the index was still down from 98.2 in June.

In commodities, crude oil futures for August delivery are up 0.11 or 0.16 percent at $69.72 a barrel.

Natural gas for August is up 0.025 or 0.90 percent at $2.805 per million btu.

Gold futures for August are down 0.89 or 0.07 percent at $1,224.80 an ounce.

Silver for September is up 0.055 or 0.35 percent at $15.55 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2919425/canadian-stocks-have-turned-positive-after-weak-start-canadian-commentary.aspx)

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This article appears in: Politics , World Markets , US Markets , Oil , Stocks
Referenced Symbols: BMO ,

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