Canadian stocks may head lower for a third straight session on Wednesday morning. Toronto's main index has been trending lower this week after reaching a seven-month high on Friday.

Energy stocks could see some weakness, with crude oil, gold and copper all in the red in the early going. Meanwhile, U.S. stock futures are pointing notably lower following the release of some disappointing retail sales data.

Quarterly earnings reports from several gold-related companies will also be in focus. Gammon Gold Inc. (GAM.TO) reported first-quarter net income of US$2.6 million or US$0.02 per share, compared to net income of US$8.5 million or US$0.07 per share in the same quarter last year.

New Gold (NGD.TO) reported net earnings for the first quarter of US$12.1 million or US$0.06 per share, higher than US$9.8 million or US$0.13 per share in the same quarter a year-ago.

Pan American Silver Corp. (PAA.TO) Tuesday said its first quarter profit declined from last year, hurt by lower base metal and silver prices, offset in part by a reduction in cost of sales.

In other corporate news, Hydrogenics Corp. (HYG.TO) reported first-quarter net loss of US$4 million or US$0.04 per share, compared to net loss of US$4.32 million or US$0.05 per share last year.

Pet Valu, Inc. (PVC.TO) reported first quarter net income of US$2.7 million or US$0.27 per share, down from US$2.8 million or US$0.28 per share in the previous year quarter.

Insurer ING Canada (IIC.TO) reported a net loss for the first quarter of C$36.3 million or C$0.30 per share compared with net income of C$23.0 million or C$0.19 per share in the corresponding period last year.

RR Donnelley & Sons said it has made an offer to acquire Quebecor World (IQW.TO) for about US$1.35 billion.

On the economic front across the border, a Commerce Department report showed that retail sales fell 0.4 percent in April following a revised 1.3 percent decrease in March. Economists had expected sales to come in unchanged compared to the 1.2 percent decrease originally reported for the previous month.

Tuesday, the S&P/TSX Composite Index lost 16.44 points or 0.16% to settle at 10,077.70. The index finished lower for a second straight day after finishing Friday at a seven-month high.

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