Canadian Stocks Are Climbing In Early Action -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Friday. The market rallied earlier this week, but closed near the unchanged level yesterday. Healthcare and information technology stocks are among the best performing stocks this morning, while mining and gold stocks are lagging behind.

Investors are in a cautious mood ahead of a speech by Federal Reserve Chair Janet Yellen this afternoon. Traders are likely to closely scrutinize Yellen's remarks for any hints regarding whether the Fed intends to raise interest rates at its meeting next month.

Markets in Europe are turning in a mixed performance Friday, trading essentially flat ahead of a speech from Federal Reserve Chair Janet Yellen. Regional economic reports were fairly positive, with U.K. consumer confidence improving in May while French consumer confidence unexpectedly strengthened to its highest level in more than fifteen years.

Markets in the United States are modestly positive in early trade Friday. Trading activity is relatively subdued ahead of the Fed Chair's speech and the upcoming Memorial Day weekend.

While the Commerce Department released a report on Friday showing stronger than previously estimated U.S. economic growth in the first quarter, the pace of growth still reflects a significant slowdown. The report said the pace of growth in gross domestic product was upwardly revised to 0.8 percent from the initial estimate of 0.5 percent.

Nonetheless, the revised GDP growth in the first quarter compares to the 1.4 percent jump seen in the fourth quarter and the 0.9 percent increase expected by economists.

The benchmark S&P/TSX Composite Index is up 64.47 points or 0.46 percent at 14,113.67.

On Thursday, the index closed down 4.54 points or 0.03 percent, at 14,049.20. The index scaled an intraday high of 14,143.50 and a low of 14,048.99.

The Capped Healthcare Index is gaining 1.69 percent. Concordia Healthcare (CXR.TO) is climbing 2.90 percent and Extendicare (EXE.TO) is adding 0.46 percent.

Valeant Pharmaceuticals International (VRX.TO) is surging 8.60 percent. The Globe and Mail reported that the company rejected a joint takeover bid from Takeda and TPG in the spring.

The Capped Information Technology Index is rising 1.13 percent. Sierra Wireless (SW.TO) is gaining 1.63 percent and Constellation Software (CSU.TO) is up 0.99 percent. Descartes Systems Group (DSG.TO) is increasing 1.37 percent and BlackBerry (BB.TO) is climbing 1.94 percent. Avigilon (AVO.TO) is also advancing 1.90 percent.

The Capped Industrials Index is gaining 0.74 percent. Canadian National Railway (CNR.TO) is higher by 0.28 percent and Canadian Pacific Railway (CP.TO) is increasing 0.69 percent. AutoCanada (ACQ.TO) is advancing 0.73 percent and Finning International (FTT.TO) is adding 0.19 percent.

The heavyweight Financial Index is increasing 0.61 percent. National Bank of Canada (NA.TO) is higher by 0.34 percent and Royal Bank of Canada (RY.TO) is rising 0.59 percent. Toronto-Dominion Bank (TD.TO) is gaining 0.75 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.32 percent. Bank of Montreal (BMO.TO) is increasing 0.23 percent and Bank of Nova Scotia (BNS.TO) is climbing 0.65 percent.

The Capped Telecommunication Services Index is up 0.17 percent. TELUS (T.TO) is gaining 0.10 percent and Rogers Communication (RCI-B.TO) is climbing 0.20 percent. Manitoba Telecom Services (MBT.TO) is also higher by 0.37 percent.

The Capped Materials Index is up 0.06 percent. Agnico Eagle Mines (AEM.TO) is increasing 0.51 percent and Franco-Nevada (FNV.TO) is adding 0.55 percent. Agrium (AGU.TO) is rising 1.56 percent and Potash Corp. of Saskatchewan (POT.TO) is climbing 0.55 percent.

The Diversified Metal and Mining Index is declining 1.41 percent. Teck Resources (TCK-B.TO) is losing 2.88 percent and First Quantum Minerals (FM.TO) is falling 0.80 percent. HudBay Minerals (HBM.TO) is decreasing 1.17 percent and Lundin Mining (LUN.TO) is weakening by 0.69 percent. Sherritt International (S.TO) is also down 1.32 percent.

The Gold Index is surrendering 0.50 percent. Gold prices are flat Friday ahead of a highly anticipated speech from Federal Reserve Chair Janet Yellen.

Yamana Gold (YRI.TO) is decreasing 2.28 percent and Barrick Gold (ABX.TO) is falling 0.68 percent. Eldorado Gold (ELD.TO) is losing 1.58 percent and IAMGOLD (IMG.TO) is weakening by 2.06 percent. Kinross Gold (K.TO) is declining 0.85 percent and Royal Gold (RGL.TO) is down 0.59 percent. B2Gold (BTO.TO) is also slipping 1.63 percent.

The Energy Index is down 0.24 percent. Crude oil prices are dipping slightly this morning, after rising above $50 a barrel for the first time in nearly 7 months yesterday.

Crescent Point Energy (CPG.TO) is losing 0.85 percent and Cenovus Energy (CVE.TO) is falling 0.50 percent. Canadian Natural Resources (CNQ.TO) is weakening by 0.36 percent and Encana (ECA.TO) is lower by 1.51 percent.

Loblaw (L.TO) is looking to sell its 212 retail fuel sites located adjacent to grocery stores in the Loblaw network. The stock is dipping 0.07 percent.

Cameco Corp. (CCO.TO) will restructure its Inkai JV partnership with KazAtomProm. Shares are rising 0.46 percent.

Enghouse Systems (ESL.TO) is climbing 2.98 percent, after it agreed to acquire the assets of NetBoss Technologies for C$9.3 million.

On the economic front, France's consumer confidence unexpectedly strengthened in May to its highest level in more than fifteen years, as households were less pessimistic regarding their future financial situation and saving intentions for the next 12 months, figures from INSEE showed Friday.

The consumer confidence index rose to 98 from 94 in March and April. Economists had expected the measure to remain steady.

Consumer confidence in the United Kingdom showed a bit of improvement in May but remained pessimistic, the latest survey from GfK revealed on Friday with an index score of -1. That beat forecasts for -4 and was an improvement over April's -3, although it still was negative.

Consumer sentiment in the U.S. improved by less than initially estimated in the month of May, according to a report released by the University of Michigan on Friday, although the consumer sentiment index remained at an eleven-month high.

The University of Michigan said the final reading on its consumer sentiment index for May came in at 94.7, reflecting a downward revision from the preliminary estimate of 95.8.

The downwardly revised index came in below economist estimates for a reading of 95.5 but was still well above the final April reading of 89.0.

In commodities, crude oil futures for June delivery are down 0.30 or 0.61 percent at $49.18 a barrel.

Natural gas for June is up 0.023 or 1.07 percent at $2.174 per million btu.

Gold futures for June are down $4.40 or 0.36 percent at $1,218.70 an ounce.

Silver for July is down $0.058 or 0.35 percent at $16.285 an ounce.