Stocks we’re watching (8 Aug 2012)

Trade will likely be light on global markets today ahead of Chinese inflation data due Thursday, but the TSX will see lots of activity Wednesday thanks to a heavy earnings report lineup. Here are the stocks we're watching today:

*Standard Chartered shares prove what a remarkable difference a day can make. Yesterday, the company's share plummeted nearly 23 per cent following accusations by U.S. regulators that it helped to hide $250 billion in transactions linked to Iran; a big time no-no given the west's tensions with that country's government. Now StanChart shares are on the rebound but with more than $16 billion worth of market value wiped out, it'll be a steep climb at that.

*Air Canada reported a second quarter loss of $96 million on Wednesday, more than double the $46 million it lost in the same period a year earlier. Labour disruptions and the closure of Aveos were cited as the primary reasons for the disastrous showing but is it that straightforward? The airline industry is one of tight margins to begin with and Canada's largest domestic and international airline is seemingly in a tailspin losing battles to smaller competitors vying for market share.

*Sun Life Financial Inc. will report its second quarter earnings after markets close today and the general expectation for Canadian life insurers is one of lower profits due to the overall economic environment. Analysts are advising investors to steer clear of insurer stocks for the time being, particularly since Canadian insurance companies are required by law to adjust their investment portfolios to ensure future payout obligations.

*Zillow Inc., the Seattle-based online real estate information company beat analyst revenue expectations on Tuesday, earning $1.3 million, or four cents per share, on revenue of $27.8 million in the second quarter. The company's revenue growth is attributed to its swelling marketplace business that's being increasingly embraced by homebuyers and sellers alike.