TSX Ends A Tad Higher On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended a shade higher on Tuesday, tracking rising global equity markets, as investors cheered on some better than expected U.S. retail sales data for December and positive Novermber eurozone industrial production numbers. The uptick was driven mostly by the mining and metals sector, amid concerns the U.S. Federal Reserve could quicken the pace of its quantitative easing program taper.

Most Asian and European stocks settled higher on some upbeat global economic data, with continued uncertainty over the Federal Reserve moves over its stimulus program taper.

Retail sales in the U.S. rose more than expected in December, with a notable downward revision to the sales growth numbers for November. Meanwhile, prices of goods imported into the U.S. remained unchanged, while business inventories also rose more than expected in November.

Meanwhile, eurozone Industrial production came in better-than-expected in November, rising at the fastest pace in more than three years, easing concerns over the sluggish pace of recovery while boosting the outlook for the 18-nation economy.

The S&P/TSX Composite Index closed Tuesday at 13,692.38, up 10.90 points or 0.08 percent. The index scaled an intraday high of 13,747.05 and a low of 13,681.48.

Crude oil ended higher ahead of the official U.S. Energy Information Administration weekly oil report that is expected to show a decline in crude stockpiles. Nonetheless, the still looming concerns of an oversupply situation after the Iran deal and Libya's expected return to normal production, the uptick prices were somewhat checked.

The Energy Index inched up 0.02 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, gaining $0.79 or 0.9 percent to close at $92.59 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 0.31 percent, while Suncor Energy Inc. (SU.TO) edged down 0.08 percent. Talisman Energy Inc. (TLM.TO) gained 0.49 percent, while Encana Corp. (ECA.TO) added 0.96 percent.

The Information Technology Index added 0.48 percent, with smartphone maker BlackBerry Limited (BB.TO) dropping 0.11 percent.

The Diversified Metals & Mining Index gained 1.50 percent, with Teck Resources Limited (TCK.B.TO) up 0.88 percent and First Quantum Minerals Ltd. (FM.TO) down 0.21percent.

The Capped Materials Index added 0.24 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) jumping 3.05 percent.

Gold futures settled lower, as investors opted for the riskier equity assets after some encouraging December retail sales data out of the U.S. and better than expected November industrial production in the eurozone.

The Global Gold Index shed 1.14 percent, with gold futures for February delivery, the most actively traded contract, dropping $5.70 or 0.5 percent to close at $1,245.40 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) slipped 1.61 percent, while Barrick Gold Corp. (ABX.TO) dropped 1.22 percent. Nonetheless, Yamana Gold Inc. (YRI.TO) gathered 1.48 percent.

Goldcorp Inc. (G.TO) lost 2.80 percent, after the miner revealed it would acquire Osisko Mining Corp.(OSK.TO) for about C$2.6 billion in cash and shares yesterday. Osisko Mining shares slipped 0.16 percent.

The Financial Index slipped 0.37 percent with Bank of Montreal (BMO.TO) down 0.14 percent and Royal Bank of Canada (RY.TO) dropping 0.44 percent. The Bank of Nova Scotia (BNS.TO) declined 0.92 percent, while Toronto-Dominion Bank (TD.TO) surrendered 0.53 percent.

The Capped Industrials Index edged down 0.05 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) edging down 1.11 percent.

Diversified communications giant Shaw Communications, Inc. (SJR.B.TO) reported a profit for the first quarter of 2014, with net income of $236 million or $0.51 per share, up from $224 million or $0.49 per share in the prior-year quarter. Analysts expected the company to report earnings of $0.49 per share for the quarter. The stock shed 1.70 percent.

Meanwhile, Corus Entertainment Inc. (CJR.B.TO) gained 3.29 percent after reporting a rise in first-quarter profit, with earnings up at $150.89 million or $1.78 per share from $52.16 million or $0.62 per share a year earlier. Excluding items, earnings for the quarter were $0.65 per share. Analysts estimated earnings of $0.62 per share for the quarter.

In economic news, retail sales in the U.S. edged up 0.2 percent in December compared to economists' estimates for a 0.1 percent increase. Sales by motor vehicle and parts dealers tumbled 1.8 percent in December after a jump in November. Excluding auto sales, retail sales rose 0.7 percent in December compared to a downwardly revised 0.1 percent uptick in November. Ex-auto sales was expected to rise 0.4 percent. Sales by gas stations surged 1.6 percent in December after a slump in November, while sales of building materials dropped 0.4 percent after rising 0.4 percent a month ago.

The less volatile core retail sales, which exclude auto, gasoline, and building materials, increased 0.7 percent in December. At the same time, the Commerce Department said the retail sales growth in November was downwardly revised to 0.4 percent from the 0.7 percent originally reported.

Business inventories in the U.S. rose more than expected in the month of November, a report released Commerce Department report showed Tuesday. Business inventories increased 0.4 percent in November after rising 0.8 percent in October. Economists expected inventories to increase 0.3 percent. Retail inventories rose 0.8 percent in November after jumping 1.1 percent in October. Wholesale inventories rose 0.5 percent after surging 1.3 percent in the previous month.

Import prices in the U.S. unexpectedly came in unchanged in December, after reporting notable decreases in import prices in each of the two previous months, the Labor Department said. Import prices recorded no change in December following decreases of 0.9 percent in November and 0.6 percent in October. Economists expected import prices to increase by about 0.4 percent.

Eurozone Industrial production came in better-than-expected in November, rising at the fastest pace in more than three years. Data from Eurostat on Tuesday showed industrial output in the currency bloc to have advanced to a seasonally adjusted 1.8 percent in November from a month earlier, after falling for two months in a row. The increase was the biggest since May 2010, when production grew 2 percent. In October, production recorded a 0.8 percent fall, which was revised up from 1.1 percent. Economists expected 1.4 percent growth for November.

U.K. inflation in December came within the the Bank of England's 2 percent target for the first time in more than four years, an indication that prices were not bloated by robust economic recovery. Consumer prices rose 2 percent year-on-year, the slowest since November 2009, the Office for National Statistics said. The rate was forecast to remain stable at 2.1 percent. Nonetheless, on a monthly basis, consumer prices gained 0.4 percent, faster than the 0.1 percent rise posted in the prior month. However, the outcome was slightly slower than the expectations for 0.5 percent.