Canadian Stocks Fall on U.S. Durable-Goods Orders, Oil Supplies

July 28 (Bloomberg) -- Canadian stocks fell for a second day, led by commodity producers, after U.S. durable-goods orders dropped and crude oil inventories unexpectedly increased.

Enbridge Inc., Canada’s biggest pipeline company, lost 2 percent as a Michigan pipeline owned by its U.S. affiliate leaked into nearby rivers. Rogers Communications Inc. slid 3.4 percent after an analyst cut his rating on the wireless carrier. Canadian Natural Resources Ltd., Canada’s second-biggest energy company by market value, declined 2.3 percent as oil futures failed to advance for a fourth day.

The Standard & Poor’s/TSX Composite Index fell 20.06 points, or 0.2 percent, to 11,696.63. The S&P/TSX has lost 0.4 percent this year as economic data indicating a slowing economic recovery overshadows stronger-than-estimated corporate earnings.

“There have been a few negative numbers in a row,” said Ari Levy, who manages C$680 million ($656 million) at TD Asset Management in Toronto. “Perhaps people are showing more caution.”

Durable-goods orders in the U.S. decreased 1 percent in June, the Commerce Department said today in Washington. All but four of 76 economists in a Bloomberg survey had forecast an increase or no change.

Enbridge, Teck

The U.S. Conference Board’s index of consumer confidence dropped to a five-month low yesterday after initial jobless claims in the country increased more than the median economist estimate last week. Seventy-five percent of Canadian exports went to the U.S. last year, according to Statistics Canada.

Enbridge and Teck Resources Ltd. dropped as environmental issues overshadowed quarterly earnings that topped their average analyst estimate, excluding certain items.

Enbridge lost 2 percent to C$50.53 as more than 800,000 gallons of oil spilled from an Enbridge Energy Partners LP pipeline into the Kalamazoo River, according to the Associated Press. The cause of the leak won’t be known for weeks, Enbridge Inc. Chief Executive Officer Patrick D. Daniel said on a conference call. TransCanada Corp., owner of Canada’s largest pipeline system, slipped 0.7 percent to C$36.26.

Teck declined 1.5 percent to C$35.38 after reporting that efforts to protect fish from selenium, a potentially toxic element present in coal, could lead to “material” costs and delays in permits.

“This issue could weigh on the shares until the company provides further clarity,” UBS AG analyst Brian MacArthur said in a note to clients.

Missing Estimates

Husky Energy Inc., Canada’s third-biggest energy company, slumped 3.8 percent, the most in nine months, to C$25.40 after reporting second-quarter profit excluding certain items that missed the average analyst estimate by 28 percent. The company also reduced its 2010 production forecast.

Other oil producers fell as the U.S. Energy Department reported the biggest weekly increase in inventories since October 2008. Canadian Natural dropped 2.3 percent to C$36. Suncor Energy Inc., the country’s largest oil and gas producer, declined 1.3 percent to C$33.04.

Rogers, the country’s biggest wireless carrier, decreased 3.4 percent to C$35.59 after Royal Bank of Canada analyst Jonathan Allen cut his rating on the company to “sector perform” from “outperform.”

Price Pressure

New carriers and Rogers’ planned launch of an unlimited talk and texting plan are likely to lead to more price pressure in the Canadian wireless industry, Toronto-based Allen wrote in a note to clients.

BCE Inc., the country’s biggest phone company, slipped 1.5 percent to C$31.46.

Research In Motion Ltd. climbed 4.4 percent to C$57.55 after tumbling 3.6 percent yesterday. Analysts at Morgan Keegan & Co. and Avian Securities LLC said the BlackBerry maker may unveil a smartphone with a slide-out keyboard on Aug. 3.

CGI Group Inc., Canada’s biggest computer-services provider, added to its 4.7 percent loss from yesterday, when it reported third-quarter revenue 3.7 percent below the average analyst forecast. Royal Bank analyst Mike Abramsky lowered his rating on the stock to “sector perform” after having rated them “outperform” since January 2008. CGI slumped 3.8 percent to C$14.87.

Westport Innovations Inc., a maker of biogas and natural gas engines, plunged 11 percent, the most in 17 months, to C$19.37 after U.S. Congressional leaders introduced energy legislation. The bill directs less funding to natural gas-fueled heavy trucks than Westport investors had hoped, National Bank of Canada analyst Rupert M. Merer said in a telephone interview.

To contact the reporter on this story; Matt Walcoff in Toronto at

To contact the editor responsible for this story: Nick Baker at