Canadian Stocks Are Declining In Early Trade -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Tuesday, following the gains of the previous session. The majority of the Canadian sectors are trading in the red. The largest losses are being posted by miners, real estate and industrial stocks. Canadian wholesale sales also fell to their lowest level in 6 months in February.

Markets in Europe are trading modestly to the upside Tuesday. The markets have received a boost from upbeat earnings reports from companies like SAP, Credit Suisse and ARM Holdings. The corporate results have overshadowed an unexpected dip in German economic sentiment.

Markets in the United States are currently mixed. The S&P 500 and the Nasdaq are posting modest gains, but the Dow Jones Industrial Average is down slightly. Corporate financial results continue to dominate the headlines on what is the heaviest week of the U.S. reporting season.

The benchmark S&P/TSX Composite Index is down 57.64 points or 0.37 percent at 15,354.96.

On Monday, the index closed up 52.02 points or 0.34 percent, at 15,412.60. The index scaled an intraday high of 15,483.12 and a low of 15,376.78.

The Diversified Metal and Mining Index is falling by 2.49 percent. Lundin Mining (LUN.TO) is down 1.38 percent and First Quantum Minerals (FM.TO) is decreasing by 1.87 percent. Capstone Mining (CS.TO) is lower by 2.24 percent and HudBay Minerals (HBM.TO) is declining by 2.28 percent. Finning International (FTT.TO) is falling by 1.18 percent.

Teck Resources (TCK-A.TO) is sinking by 4.60 percent. The company reported adjusted EPS of C$0.11, down from C$0.18 last year and announced a dividend cut.

The Gold Index is losing 0.23 percent. Goldcorp (G.TO) is decreasing by 1.00 percent and Yamana Gold (YRI.TO) is falling by 0.41 percent. Barrick Gold (ABX.TO) is losing 1.28 percent and Eldorado Gold (ELD.TO) is down 1.48 percent.

The Capped Materials Index is also lower by 0.53 percent. Silver Wheaton (SLW.TO) is falling by 0.34 percent and Agrium (AGU.TO) is decreasing by 0.10 percent.

The Capped Industrials Index is declining by 1.30 percent. Air Canada (AC.TO) is down 0.58 percent.

Canadian Pacific Railway (CP.TO) is falling by 1.23 percent. The company reported first quarter adjusted EPS of $2.26, which topped the consensus estimate of $2.18.

Canadian National Railway (CNR.TO) is losing 2.87 percent. The company reported first quarter EPS of C$0.86, which beat the consensus estimate of C$0.85.

The Energy Index is decreasing by 0.56 percent. Crude oil prices were slightly lower Tuesday morning, but held on to most of their recent gains amid mounting tensions in the Middle East. Yemen is the backdrop for a proxy conflict between the region's two big powers, Saudi Arabia and Iran.

Encana (ECA.TO) is gaining 1.21 percent and Legacy Oil + Gas (LEG.TO) is rising by 1.48 percent.

Cenovus Energy (CVE.TO) is down 0.56 percent and Suncor Energy (SU.TO) is declining by 0.67 percent. Canadian Natural Resources (CNQ.TO) is falling by 0.83 percent and Canadian Oil Sands (COS.TO) is losing 1.06 percent. Pacific Rubiales Energy (PRE.TO) is decreasing by 1.55 percent

The heavyweight Financial Index is down 0.33 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling by 0.10 percent and Royal Bank of Canada (RY.TO) declining by 0.24 percent. Toronto-Dominion Bank (TD.TO) is down 0.36 percent and Bank of Montreal (BMO.TO) is lower by 0.03 percent.

The Capped Information Technology Index is higher by 0.73 percent. Constellation Software (CSU.TO) is advancing by 0.48 percent and Sierra Wireless (SW.TO) is rising by 0.60 percent. Descartes Systems Group (DSG.TO) is also up 0.51 percent.

BlackBerry (BB.TO) is lower by 0.16 percent, after it agreed to acquire WatchDox Ltd. for an undisclosed amount.

The Capped Health Care Index is climbing by 0.60 percent. Valeant Pharmaceuticals International (VRX.TO) is higher by 1.81 percent and Extendicare (EXE.TO) is gaining 0.52 percent. Catamaran (CCT.TO) is up 0.29 percent and Concordia Healthcare (CXR.TO) is adding 1.22 percent.

The Capped Telecommunication Services Index is rising by 0.18 percent. Manitoba Telecom Services (MBT.TO) is gaining 0.27 percent and TELUS (T.TO) is increasing by 0.19 percent.

Rogers Communication (RCI-A.TO) is down 0.37 percent. The company reported first quarter adjusted EPS of C$0.53, which fell short of the consensus estimate of C$0.63.

Celestica (CLS.TO) is advancing by 4.69 percent. The company reported first quarter adjusted EPS of $0.19, which missed the consensus estimate of $0.22.

On the economic front, Canadian wholesale sales fell to their lowest level in 6 months. Sales declined by 0.4 percent in February, according to a report released by Statistics Canada Tuesday morning. Economists were expecting an increase of 0.5 percent.

German investor confidence deteriorated for the first time since October as global weakness and Greece crisis weighed on domestic prospects, survey data from the Centre for European Economic Research, or ZEW, showed Tuesday. The indicator of economic sentiment dropped unexpectedly by 1.5 points to 53.3 in April. Economists had forecast the index to improve to 55.3.

The Eurozone government deficit ratio declined in 2014, while government debt increased from last year, Eurostat reported Tuesday. The government deficit to GDP ratio fell to 2.4 percent in 2014 from 2.9 percent in 2013. Meanwhile, the government debt to GDP ratio increased to 91.9 percent from 90.9 percent a year ago.

In commodities, crude oil futures for May delivery are up $0.20 or 0.35 percent at $56.58 a barrel.

Natural gas for May is up $0.047 or 1.85 percent at $2.583 per million btu.

Gold futures for June are up $3.30 or 0.28 percent at $1,197.00 an ounce.

Silver for May is up $0.056 or 0.35 percent at $15.945 an ounce.