Stocks Fight Back From Early Losses -- Canadian Commentary

(RTTNews) - Canadian stocks are paring early losses Wednesday mid morning, with a strong Canadian wholesale sales report lifting sentiment.

The early weakness was due in part to a disappointing earnings report from U.S. retail major Target Corp.

Investors are treading cautiously, as they await the U.S. Federal Reserve's July policy meeting minutes, due to be released at 2 pm ET, for clues on Fed rate outlook.

Data from Statistics Canada showed Canadian wholesale sales to have risen by a bigger than expected 0.6 percent in June.

Investors are also digesting the minutes of the Bank of England's latest policy meeting showed two of the policy board members to have insisted on an interest rate hike.

The benchmark S&P/TSX Composite Index is up 3.70 points or 0.02 percent at 15,480.87, after having declined to 15,425.82 earlier.

On Tuesday, the index closed at 15,477.17, up 138.70 points or 0.90 percent, with investors reacting positively to some upbeat U.S. economic data.

The Capped Materials Index is up 0.8 percent, with First Quantum Minerals (FM.TO), Lundin Mining Corporation (LUN.TO) and Major Drilling Group International Inc. (MDI.TO) gaining 1.7 to 2.0 percent. Capstone Mining Corp. (CS.TO) is rising about 1.3 percent.

Consumer staples stocks are weak on profit taking, dragging down the index tracking their movements by about 0.6 percent. Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies Limited (L.TO), Saputo Inc. (SAP.TO), George Weston Limited (WN.TO), Jean Coutu Group (PJC) Inc. (PJC.A.TO), Maple Leaf Foods Inc. (MFI.TO) and Cott Corporation (BCB.TO) are down 0.6 to 1.2 percent.

Among big six banks, Canadian Imperial Bank Of Commerce (CM.TO) is adding 0.5 percent, while the rest are down in negative territory with marginal losses.

The Energy index is down by about 0.15 percent. Canadian Natural Resources Limited (CNQ.TO) and Cenovus Energy Inc. (CVE.TO) are lower by over 0.5 percent and Canadian Oil Sands Limited (COS.TO) is declining 1.8 percent. Meanwhile, Husky Energy Inc. (HSE.TO) is moving up 0.6 percent and Legacy Oil + Gas (LEG.TO) is rising 2.5 percent.

Meanwhile, Painted Pony Petroleum Ltd. (PPY.TO) shares are moving up 5.7 percent. The company announced Tuesday that it signed a definitive agreement with AltaGas Ltd. (ALA.TO) for a 15-year strategic alliance to develop processing infrastructure and marketing services for natural gas. Shares of AltaGas Ltd. are down 2.5 percent.

Among gold stocks, Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), B2Gold Corp. (BTO.TO) and Agnico Eagle Mines (AEM.TO) are lower by 0.3 to 0.6 percent, while Yamana Gold Inc. (YRI.TO) is up nearly 0.5 percent.

Technology stock BlackBerry (BB.TO) is moving up over 3 percent.

Sears Canada, Inc. (SCC.TO) is declining 2.2 percent on reporting second-quarter net loss of C$21.3 million or C$0.21 per share compared with a profit of C$152.8 million or C$1.50 per share last year. A pre-tax gain of C$ 185 million related to early lease terminations and amendments contributed to the higher net earnings last year.

Petroamerica Oil (PTA.V) said second-quarter net income declined to $6.43 million from $11.17 million in the previous year. Earnings per were down to $0.01 from $0.02. The stock is flat.

In commodities, crude oil futures for September are up $1.09 or 1.15 percent at $95.57 a barrel. According to a report from the U.S. Energy Information Administration, crude oil stockpiles declined by a more than expected 4.5 million barrels in the week ended August 15.

Natural gas for September is down $0.064 or 1.64 percent at $3.814 per million btu.

Gold futures for December are down $1.80 or 0.14 percent at $1,295.10 an ounce.

Silver for September is up $0.075 or 0.39 percent at $19.487 an ounce. Meanwhile, copper is up $0.064 or 2.08 percent at $3.153 per pound.

European markets are trading weak, reacting to the minutes of BOE's August meeting that showed the members were divided on interest rate call. Some disappointing earnings news from the region are also contributing to the weakness.

Investors are also awaiting some crucial speeches later this week from top bankers at the Fed's annual Jackson Hole symposium, including the Fed Chair Janet Yellen.