Canadian Stocks Are Extending Gains On Crude Strength -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Wednesday, adding to the gains of the previous two sessions, but is off its early highs. Rising commodity prices are a source of strength for the market in early action. Financial stocks are also in focus after three of Canada's largest banks reported quarterly results.

Crude oil prices reached nearly a 7-month high this morning, following the larger than expected draw down in U.S. crude inventories yesterday. Mining stocks are the best performing stocks this morning as precious metal prices head higher.

Markets in Europe are turning in a mixed performance Thursday. After two days of strong gains, trading action has been choppy today, fluctuating between small gains and losses.

Markets in the United States are hovering near the flat line Thursday morning. Despite the release of some strong U.S. economic data, investors appear uncertain how to proceed after two days of strong gains. The approach of the long holiday weekend may be partly responsible.

The benchmark S&P/TSX Composite Index is up 16.03 points or 0.11 percent at 14,069.77.

On Wednesday, the index closed up 100.89 points or 0.72 percent, at 14,053.74. The index scaled an intraday high of 14,093.29 and a low of 13,963.68.

The Diversified Metal and Mining Index is advancing 2.15 percent. Teck Resources (TCK-B.TO) is gaining 2.69 percent and First Quantum Minerals (FM.TO) is rising 3.02 percent. HudBay Minerals (HBM.TO) is increasing 0.39 percent and Lundin Mining (LUN.TO) is climbing 2.14 percent. Capstone Mining (CS.TO) is also up 1.52 percent.

The Capped Materials Index is up 1.00 percent. Agnico Eagle Mines (AEM.TO) is increasing 1.13 percent and Silver Wheaton (SLW.TO) is climbing 0.53 percent. Agrium (AGU.TO) is rising 0.62 percent.

The Gold Index is climbing 0.78 percent. Gold prices are inching higher this morning, trimming recent losses as traders look to buy at low prices.

Yamana Gold (YRI.TO) is increasing 1.23 percent and Goldcorp (G.TO) is gaining 0.46 percent. Barrick Gold (ABX.TO) is rising 1.42 percent and Eldorado Gold (ELD.TO) is adding 0.17 percent. IAMGOLD (IMG.TO) is climbing 1.13 percent and Kinross Gold (K.TO) is advancing 3.75 percent.

The Energy Index is up 0.45 percent. Crude oil prices rose above $50 a barrel this morning for the first time in nearly 7 months after yesterday's larger-than-expected weekly decline in US crude supplies. Prices have since slipped just below the $50 a barrel level.

Crescent Point Energy (CPG.TO) is gaining 0.67 percent and Cenovus Energy (CVE.TO) is rising 0.76 percent. Imperial Oil (IMO.TO) is climbing 0.33 percent and Canadian Natural Resources (CNQ.TO) is adding 0.13 percent. Suncor Energy (SU.TO) is up 0.34 percent and Encana (ECA.TO) is higher by 1.73 percent.

The heavyweight Financial Index is increasing 0.19 percent. National Bank of Canada (NA.TO) is higher by 0.11 percent.

Royal Bank of Canada (RY.TO) is rising 1.16 percent after it posted fiscal second-quarter profit that beat analysts' estimates.

Toronto-Dominion Bank (TD.TO) is gaining 0.54 percent after it reported a better-than-expected 10 percent increase in its second-quarter profit.

Canadian Imperial Bank of Commerce (CM.TO) falling 0.82 percent. The company beat estimates on higher profit from retail and hiked its dividend.

The Capped Industrials Index is gaining 0.37 percent. Canadian National Railway (CNR.TO) is higher by 0.79 percent and Canadian Pacific Railway (CP.TO) is increasing 0.71 percent. Air Canada (AC.TO) is advancing 0.31 percent.

The Capped Telecommunication Services Index is up 0.40 percent. TELUS (T.TO) is gaining 0.44 percent and Rogers Communication (RCI-B.TO) is climbing 0.52 percent. BCE (BCE.TO) is rising 0.36 percent and Manitoba Telecom Services (MBT.TO) is higher by 0.32 percent.

The Capped Information Technology Index is rising 0.24 percent. Sierra Wireless (SW.TO) is gaining 0.31 percent and Constellation Software (CSU.TO) is up 0.79 percent.

Descartes Systems Group (DSG.TO) is falling 0.30 percent. The company reported first quarter EPS of $0.08, compared to $0.06 a year ago.

The Capped Healthcare Index is losing 0.31 percent. Concordia Healthcare (CXR.TO) is weakening by 1.65 percent and Valeant Pharmaceuticals International (VRX.TO) is declining 0.88 percent.

On the economic front, Statistics Canada reported this morning that Canadian average weekly employee earnings rose 0.5 percent in March, on a month over month basis. Earnings were up 0.7 percent on a year over year basis.

The U.K. economy expanded as initially estimated in the first quarter, the second estimates from the Office for National Statistics showed Thursday.

Gross domestic product grew 0.4 percent in the first quarter from previous three months, unrevised from the estimate published on April 27. It was slower than the 0.6 percent expansion posted in the fourth quarter of 2015.

UK mortgage approvals declined more-than-expected to its lowest level in over a year in April, after the stamp duty hike, figures from the British Bankers' Association said Thursday. The number of loans approved for house purchase declined sharply to 40,104 from 43,854 in March, revised from 45,096. Economists had forecast 44,700 approvals.

First-time claims for U.S. unemployment benefits decreased for the second straight week in the week ended May 21st, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 268,000, a decrease of 10,000 from the previous week's unrevised level of 278,000. Economists had expected claims to edge down to 275,000.

Partly reflecting a jump in orders for commercial aircraft and parts, the Commerce Department released a report on Thursday showing that new orders for U.S. manufactured goods surged up by much more than expected in April.

The Commerce Department said durable goods orders shot up by 3.4 percent in April after climbing by an upwardly revised 1.9 percent in March. Economists had expected orders to rise by just 0.3 percent compared to the 0.8 percent increase that had been reported for the previous month.

In commodities, crude oil futures for June delivery are up 0.22 or 0.44 percent at $49.78 a barrel.

Natural gas for June is down 0.038 or 1.91 percent at $1.954 per million btu.

Gold futures for June are up $1.70 or 0.14 percent at $1,225.50 an ounce.

Silver for July is up $0.179 or 1.10 percent at $16.44 an ounce.