TSX Flat Despite Bank Earnings Beat -- Canadian Commentary

(RTTNews) - Canadian stocks inched lower for a second session, having snapped an 11-day win streak yesterday. Still, the outlook for stocks loos rose as earnings season for big banks kicked off with CIBC (CM.TO) smashing estimates with a 26% increase in second quarter profit.

The TSX Composite Index was down 11 points to 16,133.80.

In economic news from the U.S., the Federal Reserve expressed little concern about inflation, suggesting the Fed will maintain its gradual approach to raising rates.

"It was noted that it was premature to conclude that inflation would remain at levels around 2%, especially after several years in which inflation had persistently run below the Fed's 2% objective," the Fed minutes said.

In Canadian corporate news, the government has passed a law boosting ownership limits in airlines and CN Rail (CN.TO).

A vote among union members at Canadian Pacific Railroad (CP.TO) averted a strike.

Crude oil prices fell Wednesday after the Energy Information Adminstration reported a massive increase in US crude oil stockpiles.

The EIA said U.S. oil inventories jumped 5.8 million barrels, versus expectations of a 2 million barrel drawdown. Gasoline stockpiles also rose according to the EIA, hinting that U.S. drivers are resisting $3/gal at the pump.

WTI light sweet oil for July lost 36 cents, or 0.5%, to settle at $71.84/bbl.