RTTN: Canadian Stocks Edge Higher Ahead Of U.S. Fed Meeting
(RTTNews.com) - Canadian stocks are modestly higher Monday mid-morning, with investors treading cautiously ahead of key earnings reports and economic events.
While some merger & acquisition news from Europe aid sentiment to an extent, sluggish commodity prices and reports about imposition of sanctions by the U.S. government against some Russian government officials and 17 companies with alleged links to President Vladimir Putin's inner circle are limiting market's gains.
The benchmark S&P/TSX Composite Index is up 21.22 points or 0.14 percent at 14,554.79.
On Friday, the index ended down 20.68 points or 0.14 percent at 14,533.57. For the week, the index gained about 0.23 percent.
In corporate news, Newmont Mining Corp. is terminating the merger talks with Barrick Gold Corp. (ABX.TO), which have been widely reported by the news media over the last week. According to several media reports, the two companies had planned to announce the deal as early as Tuesday. Barrick Gold Corp. shares are down 1.2 percent.
Coastal Contacts Inc. (COA.TO) said on Friday that it has received Competition Act clearance for the proposed statutory plan of arrangement under which Essilor International, S.A. will indirectly acquire all of the issued and outstanding common shares of Coastal.com for a purchase price of C$12.45 per share. The stock has not been traded yet this morning.
Precision Drilling Corp. (PD.TO) shares are up 2.3 percent after the company reported net earnings of $102 million, or $0.35 per diluted share, for the first quarter, compared to net earnings of $93 million, or $0.33 per diluted share, in the first quarter last year.
Qlt Inc. (QLT.TO) reported an operating loss of $6.6 million for the fourth quarter, compared to a $10.1 million operating loss for the same period in 2012. The stock is down 0.7 percent.
Contrans Group Inc. (CSS.T) is up 0.7 percent following an announcement from the company that it will sell its waste-collection business to GFL Environmental Inc. for an undisclosed amount.
Hardwoods Distribution Inc. (HWD.TO) shares are up 0.8 percent after the company said it has purchased hardwood lumber producer Hardwoods of Michigan Inc. for $15.4 million. Harwoods expects the acquisition will result in an additional revenue of C$33 million a year.
Suncor Energy Inc (SU.TO) is down marginally ahead of results, due later in the day.
In the materials space, Teck Resources Limited (TCK.B.TO) and HudBay Minerals Inc. (HBM.TO) are down 1.6 percent and 2.1 percent, respectively. Turquoise Hill Resources Ltd. (TRQ.TO), Lundin Mining Corporation (LUN.TO) and Capstone Mining Corp. (CS.TO) are declining 0.5 to 1 percent, while Nevsun Resources Ltd. (NSU.TO) is up in positive territory, gaining over 0.5 percent.
Among gold stocks, Kinross Gold Corporation (K.TO), Yamana Gold Inc. (YRI.TO), Detour Gold Corporation (DGC.TO) are down 1.2 to 2 percent. Goldcorp Inc. (G.TO), Osisko Mining Corporation (OSK.TO) and Torex Gold Resources Inc. (TXG.TO) are lower by 0.5 to 1 percent, while Torex Gold Resources Inc. (TXG.TO) is up marginally.
In the consumer staples section, Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies Limited (L.TO) and Maple Leaf Foods Inc. (MFI.TO) are up 0.5 to 0.8 percent. Meanwhile, Saputo Inc. (SAP.TO) is climbing nearly 2 percent.
Consumer discretionary stocks Magna International Inc. (MG.TO), Thomson Reuters Corporation (TRI.TO), Canadian Tire Corporation, Limited (CTC.A.TO), Gildan Activewear Inc. (GIL.TO) and Dollarama Inc. (DOL.TO) are notably higher.
Among industrial stocks, Ballard Power Systems Inc. (BLD.TO) is up over 3 percent. Canadian National Railway Company (CNR.TO), Finning International Inc. (FTT.TO) and Stantec Inc. (STN.TO) are moving up 1.3 to 2 percent. Bombardier (BBD.B.TO) and MacDonald, Dettwiler and Associates Ltd. (MDA.TO) are modestly higher.
Amng big six banks, Canadian Imperial Bank Of Commerce (CM.TO) is up 0.5 percent, while the rest are little changed from previous closing levels.
Technology stocks BlackBerry Limited (BB.TO), Constellation Software Inc. (CSU.TO) and Celestica Inc. (CLS.TO) are up 0.5 to 1.2 percent. Avigilon Corporation (AVO.TO) is declining more than 2 percent.
In commodities, Crude futures for June are up $0.15 or 0.15 percent at $100.75 a barrel, after rising to $101.52 earlier in the day.
Natural Gas for June is up $0.102 or 2.20 percent at $4.761 per million btu.
Gold futures for June are down $7.70 or 0.59 percent at $1,293.10 an ounce, after hitting a two-week high of $1,306.50 an ounce in early trades.
Silver for July is down $0.162 or 0.82 percent at $19.556 an ounce. Meanwhile, copper is down marginally at $3.091.
In the currency market, the Canadian loonie is trading at 1.1024 against the U.S. dollar, up 0.13 percent from previous close.
In economic news, pending home sales saw a more than anticipated rise in March. The National Association of Realtors' pending home sales index surged up 3.4 percent to 97.4 in the month, after edging down by 0.5 percent to a revised 94.2 in February. Economists had been expecting a much more modest increase of about 0.6 percent.
Investors will be looking ahead to the outcome of the 2-day FOMC meeting that begins on Tuesday.
The U.S. non-farm payrolls report for April, the Conference Board's consumer confidence index for April, advance estimate for first quarter GDP and the Commerce Department's personal income and spending report for March will be eyed this week.
Also due for release during the week are the results of the Institute for Supply Management's manufacturing index for April and the results of a regional manufacturing survey by MNI Indicators, auto sales for April and the jobless claims report. Additionally, the final estimate of Markit's U.S. manufacturing survey for March will also be eyed.
Asian markets ended lower on Ukraine worries. Major European markets are higher with some merger & acquisition news lifting sentiment.
