Canadian Stocks Continue To Lose Ground -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a weak start Thursday, but has since recovered some lost ground. The majority of the Canadian sectors are trading in the red, with the heaviest losses in the financial, mining, healthcare and industrial sectors. Energy stocks are also struggling as crude oil prices slip further. However, gold stocks are the one bright spot this morning, as investors flee riskier investments in favor of safe havens.

Asian stock markets took another pounding on Thursday as markets in Hong Kong and South Korea resumed trading following a long weekend. Markets in Europe tumbled back near their recent lows early Thursday, but have since pared their losses. Weakness in crude oil prices and concerns about slowing global growth have had a negative impact on investor sentiment, as Federal Reserve Chair Janet Yellen warned of several risks facing the world's largest economy.

Markets in the United States are also trading in the red this morning, but are off their early lows. Investors remain focused on Fed Chair Janet Yellen, who is testifying before the Senate Banking Committee today. The question-and-answer portion will be of particular importance, since her prepared statement is the same one she gave before the House yesterday.

The benchmark S&P/TSX Composite Index is down 145.23 points or 1.19 percent at 12,037.67.

On Wednesday, the index closed down 96.93 points or 0.79 percent, at 12,185.72. The index scaled an intraday high of 12,392.27 and a low of 12,171.93.

The Capped Health Care Index is lower by 3.31 percent. Valeant Pharmaceuticals International (VRX.TO) is falling 6.25 percent and Concordia Healthcare (CXR.TO) is losing 4.39 percent. Extendicare (EXE.TO) is also down 1.27 percent.

The Diversified Metal and Mining Index is declining 2.91 percent. Lundin Mining (LUN.TO) is dipping 0.16 percent and HudBay Minerals (HBM.TO) is falling 4.71 percent. First Quantum Minerals (FM.TO) is dropping 4.28 percent and Capstone Mining (CS.TO) is losing 2.94 percent. Sherritt International (S.TO) is decreasing 4.48 percent.

Teck Resources (TCK-B.TO) is lower by 4.96 percent. The company reported a fourth-quarter loss attributable to shareholders of C$0.80 per share, compared with a profit C$0.23 per share in 2014.

The Capped Industrials Index is falling 2.18 percent. Air Canada (AC.TO) is weakening by 2.82 percent and Finning International (FTT.TO) is down 2.09 percent. AutoCanada (ACQ.TO) is losing 0.56 percent and CAE (CAE.TO) is dropping 1.84 percent. Canadian National Railway (CNR.TO) is lower by 1.53 percent and Canadian Pacific Railway (CP.TO) is decreasing 4.19 percent.

The heavyweight Financial Index is weakening by 2.09 percent. Royal Bank of Canada (RY.TO) is decreasing 1.90 percent and Canadian Imperial Bank of Commerce (CM.TO) is falling 2.08 percent. Bank of Nova Scotia (BNS.TO) is losing 1.88 percent and National Bank of Canada (NA.TO) is declining 2.87 percent. Bank of Montreal (BMO.TO) is lower by 2.11 percent and Toronto-Dominion Bank (TD.TO) is surrendering 1.97 percent.

Sun Life Financial (SLF.TO) is decreasing 1.71 percent. The company reported fourth quarter operating EPS of C$0.98, compared to C$0.83 in the previous year.

The Capped Information Technology Index is lower by 2.09 percent. Constellation Software (CSU.TO) is falling 1.67 percent and BlackBerry (BB.TO) is declining 2.49 percent. Descartes Systems Group (DSG.TO) is losing 1.86 percent and Avigilon (AVO.TO) is also down 1.86 percent.

The Capped Telecommunication Services Index is losing 1.21 percent. Manitoba Telecom Services (MBT.TO) is declining 1.10 percent and Rogers Communication (RCI-A.TO) is lower by 1.22 percent. BCE (BCE.TO) is dipping 0.24 percent. TELUS (T.TO) is down 3.34 percent. The company reported fourth quarter adjusted EPS of C$0.54, up 1.9 percent from the prior year.

The Energy Index is falling 0.61 percent. Crude oil prices tumbled Thursday morning, extending recent losses in spite of a weaker dollar and unexpected decline in U.S. inventories.

Encana (ECA.TO) is decreasing 0.82 percent and Canadian Oil Sands (COS.TO) is losing 1.94 percent. Crescent Point Energy (CPG.TO) is weakening by 0.37 percent and Suncor Energy (SU.TO) is falling 2.03 percent. Husky Energy (HSE.TO) is down 2.12 percent and Enbridge (ENB.TO) is declining 0.87 percent. Pacific Exploration & Production (PRE.TO) is decreasing 1.67 percent and Canadian Natural Resources (CNQ.TO) is dropping 3.20 percent.

Cenovus Energy (CVE.TO) is gaining 5.62 percent, after it reported a wider loss for the fourth quarter and cut its dividend for the first quarter by 69 percent. The company also said it plans to reduce capital spending for fiscal 2016 and will further reduce its workforce.

The Gold Index is surging 6.25 percent. Gold prices have surged to their highest level in nine months Thursday morning amid renewed speculation the Federal Reserve will keep ultra-low interest rates for most of the year.

Barrick Gold (ABX.TO) is advancing 6.64 percent and Yamana Gold (YRI.TO) is climbing 11.54 percent. Goldcorp (G.TO) is climbing 5.51 percent and Royal Gold (RGL.TO) is rising 3.46 percent. Kinross Gold (K.TO) is leaping 16.48 percent and Eldorado Gold (ELD.TO) is adding 12.10 percent. B2Gold (BTO.TO) is increasing 12.10 percent and IAMGOLD (IMG.TO) is rising 10.07 percent.

The Capped Materials Index is also up 3.77 percent. Agnico Eagle Mines (AEM.TO) is rising 7.98 percent and Silver Wheaton (SLW.TO) is increasing 4.62 percent. Agrium (AGU.TO) is declining 0.37 percent. Potash Corp. of Saskatchewan (POT.TO) is also gaining 1.97 percent.

Yellow Pages (Y.TO) is climbing 8.53 percent. The company reported fourth quarter basic EPS of $0.22, compared to basic EPS of $3.53 in the year prior year.

TransCanada (TRP.TO) reported a smaller-than-expected loss in the fourth quarter of 2015, hit by low oil prices. The stock is down 0.29 percent.

On the economic front, Statistics Canada reported this morning that the Canadian new housing price index rose 0.1 percent in December. Economists had expected an increase of 0.2 percent.

The U.K. economy grew at a slightly slower pace in three months to January due to the weakness in the production sector, the National Institute of Economic and Social Research said Wednesday. The monthly estimates of gross domestic product suggested that output climbed 0.4 percent in three months ending January compared to a 0.5 percent expansion in three months to December.

Following last week's mixed monthly jobs report, the Labor Department released a report on Thursday showing that first-time claims for U.S. unemployment benefits fell by more than expected in the week ended February 6th.

The report said initial jobless claims dropped to 269,000, a decrease of 16,000 from the previous week's unrevised level of 285,000. Economists had expected jobless claims to edge down to 281,000.

In commodities, crude oil futures for March delivery are down 0.62 or 2.26 percent at $26.83 a barrel.

Natural gas for March is up 0.015 or 0.73 percent at $2.061 per million btu.

Gold futures for April are up $43.60 or 3.65 percent at $1,238.20 an ounce.

Silver for March is up $0.388 or 2.54 percent at $15.67 an ounce.