Canadian Stocks May Limp Out Of The Gate Wednesday -- Canadian Commentary

(RTTNews) - Canadian stocks are likely to remain a bit listless Wednesday morning, with investors reacting to the U.S. and Canadian trade data.

According to Statistics Canada, trade surplus widened to C$1.86 billion in June, up from C$580 million in the preceding month.

A report from the U.S. Commerce Department showed U.S. trade deficit to have unexpectedly narrowed to $41.5 billion in June.

A sell-off in European markets amid some weak economic data including a report that showed German factory orders to have declined at the sharpest pace in over three years, could prove a dampener.

Geopolitical concerns, with Russia's move in positioning its troops along the east Ukrainian border raising prospects of a possible invasion, may hurt as well.

Gold stock are likely to rally, tracking higher bullion prices. Energy stocks may edge higher as well, with crude oil prices coming off a six-month low.

With several companies slated to announce their quarterly results, activity may be stock specific.

On Tuesday, the S&P/TSX Composite Index closed down 27.55 points or 0.18 percent at 15,187.71, extending losses to a third successive session.

WestJet Airlines Ltd. (WJA.TO) reported a 6.7 percent year-over-year jump in its air traffic in July, on a 6.6 percent capacity increase. Load factor in July was 83.3 percent, an increase of 0.2 points from the prior-year period.

BlackBerry Limited (BB.TO) will be in focus after its Secure Work Space for iOS and Android received Security Technical Implementation Guide or STIG approval from the Defense Information Systems Agency or DISA.

Tim Hortons Inc. (THI.TO) reported net income of C$123.75 million for the second quarter 2014, little changed from previous corresponding quarter. Earnings per share improved to C$0.92, from C$0.81 a year ago.

Molson Coors Brewing Company (TPX.TO) reported second quarter net income of $290.9 million, up from the prior year's $267.3 million, with earnings per share improving to $1.56 from $1.45 last year.

Zcl Composites Inc (ZCL.TO) reported net income of $4.5 million or $0.15 per fully diluted share for the first quarter, down $0.6 million or 12 percent from $5.1 million or $0.17 per fully diluted share last year.

WSP Global Inc (WSP.TO) reported first quarter net earnings of $28.8 million, or $0.47 per share, up 37.8 percent and 17.5 percent, respectively from the year ago quarter.

Bellatrix Exploration Ltd (BXE.TO) has reported second quarter net income of $0.22 per basic share, compared to $0.14 per basis share last year.

In commodities, crude oil futures for September are up $0.28 or 0.29 percent at $97.67 ahead of officail weekly crude inventory data from the U.S. Energy Information Administration, due at 10:30 am ET.

Natural gas for September is up $0.022 or 0.58 percent at $3.920 per million btu.

Gold futures for December are up $19.60 or 1.54 percent at $1,304.90 an ounce, on geopolitical concerns.

Silver for September is up $0.044 or 0.22 percent at $19.877 an ounce. Meanwhile, copper is down $0.043 or 1.33 percent at $3.162 on likely fall in Chinese demand.

In economic news from the U.S., a report from the Commerce Department showed U.S. trade deficit to have shrunk 7 percent to $41.5 billion in June, due largely to a notable drop in petroleum imports. Economists expected the trade deficit to widen to $45 billion from $44.4 billion in May.