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Colin Cieszynski

The Before the Bell report is compiled by editors of The Globe and Mail and is updated throughout the morning to reflect latest developments. Colin Cieszynski, Chartered Financial Analyst and Chartered Market Technician, is chief market strategist with CMC Markets.

North American markets are following their overseas counterparts lower this morning amid a deluge of central bank, economic and corporate announcements. Dow and S&P 500 futures are trading down about 0.8 per cent, with Nasdaq futures down about 0.4 per cent, cushioned by positive earnings from Facebook and other technology companies late Wednesday.

We could see significant action in a number of stocks this morning on both sides of the border. Facebook rallied in extended trading after posting earnings per share of 77 cents, way above the 62 cents Street estimate. First Solar, on the other hand, declined on news of an upcoming change in the CEO. Symantec may come under pressure after surprising the Street with news that its next CEO is stepping down, cutting guidance and postponing its analyst day.

In Canada today, Bombardier is in the spotlight once again after the company confirmed that it has won a big $5.6 billion order for 125 C Series jets from Delta Air Lines (75 firm and 50 options). Potash, on the other hand, could come under pressure after missing on earnings and cutting guidance. BCE narrowly beat the street.

Mixed earnings reports from big integrated oils may also attract attention today. Suncor's results were worse than expected, but the company boosted production guidance. ConocoPhillips results were not as bad as feared but the company cut capex spending again.

Forex trading overnight was dominated by the swift and severe reaction to the Bank of Japan's decision to maintain current interest rate policy to give it more time to assess how the recent introduction of negative interest rates is working. This was a hawkish surprise to the Street, as many traders had been looking for another big stimulus package. The news sent the Japanese yen soaring over 2 per cent against the greenback, Canadian dollar and other major currencies (which is a huge move in a day in forex. Think of it as a 20 per cent move in a stock). The currency rally crushed Japanese stocks, sending the Nikkei down 3.6 per cent.

Japan isn't the only country to see its currency soar overnight. The New Zealand dollar gained 1.6 per cent against the U.S. dollar after the Reserve Bank of New Zealand maintained its overnight rate as well, surprising some who had been hoping for a rate cut. Its central bank left the door open to a future rate cut but didn't say when and tried to talk down the dollar a bit but didn't make any serious threats, so the Street took the statement as neutral and more hawkish than expected.

Meanwhile, Wednesday's Federal Open Market Committee announcement dropped concerns about overseas economies and financial markets and took a neutral tone of leaving the door open to a June rate hike. Brazil's central bank held rates steady through the country's political crisis. Overall, these decisions suggest that the recent cycle of monetary easing is winding down and that pendulum is starting to swing back in a less dovish direction toward neutrality at least.

In economic news this morning, U.S. first quarter GDP - the first release of this three-month period before revisions are made - came it at 0.5 per cent on an annualized basis, versus Street expectations of 0.7 per cent.

Now, here is a closer look at what's going on this morning and what is still to come.

MARKET DATA: (as of approx. 715 a.m. ET:)

Futures

Dow -0.80 per cent; S&P 500 -0.74 per cent; Nasdaq: -0.52 per cent, TSX 60 -0.5 per cent

Equities
Japan's Nikkei 225 -3.61 per cent
Shanghai composite index -0.25 per cent
Hong Kong's Hang Seng +0.12 per cent
Germany's DAX -1.28 per cent
London's FTSE -1.14 per cent
France's CAC 40 -1.45 per cent

Commodities
WTI crude oil (Nymex June) -0.13 per cent at $45.27 (U.S.) a barrel
Gold (Comex June) +0.59 per cent  at $1,257.80 (U.S.) an ounce
Copper (Comex May) -0.36 per cent at $2.20 (U.S.) a pound

Currencies
Canadian dollar +0.0006 at 79.43 cents (U.S.)
U.S. dollar index -0.53 at 93.88

Bonds
U.S. 10-year Treasury yield -0.02 at 1.84 per cent

KEY ECONOMIC RELEASES
 

U.S. first-quarter GDP rose at an annualized rate of 0.5 per cent vs. an estimated 0.7 per cent gain.

U.S. initial jobless claims for last week were 257,000 vs. an estimated 259,000.

KEY STOCKS TO WATCH

BCE Inc. posted profit that topped analysts' estimates as Canada's largest telecommunications provider added more wireless customers than expected. Earnings excluding some items were 85 Canadian cents a share. That exceeded the 84-cent average of estimates compiled by Bloomberg. Sales of $5.27 billion trailed projections for $5.32 billion as it spent more on promotions to attract subscribers. BCE added 25,805 wireless customers, beating analysts' average estimate of 24,167.

Potash Corp of Saskatchewan cut its full-year profit forecast due to weak demand and lower prices. The U.S.-listed shares of the company, which also reported a 79.7 per cent fall in first-quarter profit on Thursday, were down more than 6 percent at $17.13 in light trading before the bell. Potash prices have fallen sharply over the past year due to overcapacity, declining farm income and weak currencies in major consumers such as India and Brazil. The company cut its 2016 earnings forecast to 60 cents-80 cents per share from 90 cents-$1.20 per share. Analysts on average were expecting 90 cents per share, according to Thomson Reuters I/B/E/S. The company said it expected second quarter profit of 15 cents-25 cents per share, also below the average estimate of 27 cents per share.

Restaurant Brands International on Thursday reported first-quarter net income of $117.5 million, after reporting a loss in the same period a year earlier. Earnings, adjusted for non-recurring costs, were 30 cents per share. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 21 cents per share.

Suncor Energy Inc. reported a first-quarter operating loss late on Wednesday as sagging crude prices outweighed record production at the company's oil sands operations in Northern Alberta. Excluding one-time items, Suncor reported an operating loss of $500 million, or 33 Canadian cents per share. That compared with an operating profit of $175 million, or 12 Canadian cents per share, in the year-ago period. The Calgary-based company separately said it had reached a $937 million deal to buy Murphy Oil Corp's 5 per cent stake in the Syncrude oil sands project, boosting Suncor's share in the joint venture to 53.74 percent.

Facebook Inc's quarterly revenue rose more than 50 percent, handily beating Wall Street expectations as its wildly popular mobile app and a push into live video lured new advertisers and encouraged existing ones to boost spending. The company's shares rose 10 per cent in premarket trading, setting it on track to open at a new high on Thursday, at nearly triple its initial public offering four years ago.

Ford Motor Co. reaped the benefits Americans' love of sport utility vehicles and pickups in the first quarter, posting record profit that exceeded analysts' estimates on the back of those popular models. Earnings excluding one-times costs were 68 cents a share, Ford said in a statement Thursday. That beat the 48-cent average estimate of 16 analysts surveyed by Bloomberg. Net income doubled to $2.5 billion, or 61 cents a share, from $1.2 billion, or 29 cents, a share, a year earlier, when F-150 pickup production was limited.

United Parcel Service Inc. on Thursday reported first-quarter net income of $1.27 per share. The results exceeded Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.22 per share. The package and delivery service posted revenue of $14.42 billion in the period, falling short of Street forecasts. Six analysts surveyed by Zacks expected $14.58 billion.

Dow Chemical Co reported a higher-than-expected quarterly adjusted profit as margins rose to their highest level in more than a decade. On an adjusted basis, profit was 89 cents per share, higher than the average analyst estimate of 83 cents, according to Thomson Reuters I/B/E/S. Net sales fell 13.5 percent to $10.70 billion, beating analysts' estimate of $10.66 billion.

Bristol-Myers Squibb Co. trounced Wall Street's first-quarter profit expectations as soaring sales of key new medicines offset higher expenses and a big hit from generic competition. Those factors left the drugmaker with a nearly flat profit, but Bristol-Myers hiked its 2016 adjusted profit forecast by 20 cents per share, to $2.50 to $2.60. The New York-based company says net income amounted to $1.2 billion, up 0.8 per cent from 2015's first-quarter. Earnings per share amounted to 74 cents excluding one-time items, 9 cents above what analysts surveyed by FactSet were expecting.Revenue totalled $4.39 billion, up from $4.04 billion in the year-ago quarter and above the $4.27 billion analysts were expecting.

MasterCard Inc. said it had net income of 86 cents per share. The results beat Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 85 cents per share. The processor of debit and credit card payments posted revenue of $2.45 billion in the period, also beating Street forecasts. Ten analysts surveyed by Zacks expected $2.38 billion.

Delta Air Lines Inc. agreed to buy at least 75 C Series narrow-body jets from Bombardier Inc., giving the Canadian manufacturer the marquee U.S. customer it has been seeking for months.

Abbott Laboratories said it agreed to buy medical device maker St. Jude Medical Inc for $25 billion (U.S.) to add heft to its heart and neurological devices business. St. Jude shareholders will receive $46.75 in cash and 0.8708 Abbott shares, representing a total consideration of about $85 per share. The offer represents a 37 percent premium to St. Jude's Wednesday closing. St. Jude's shares were trading at $79.45 premarket on Thursday.

Priceline Group Inc said Chief Executive Darren Huston had resigned, effective immediately, following an investigation related to a personal relationship that he had with an employee who was not under his direct supervision. The online travel agency operator appointed former CEO and current chairman, Jeffery Boyd, as interim CEO while the board conducts a search to name a successor.

Other earnings today include: AbbVie Inc.; Acadia Healthcare Company Inc.; Air Products and Chemicals Inc.; Airbus Group SE; Airgas Inc.; Alexion Pharmaceuticals Inc.; Allegion PLC; Alliant Energy Corp.; Amazon.com Inc.; Ametek Inc.; Amgen Inc; Arthur J Gallagher & Co.; athenahealth Inc.; Avnet Inc.; Axalta Coating Systems Ltd.; B&G Foods Inc.; Baidu Inc.; Ball Corp.; BCE Inc.; Bombardier Inc.; Bristol-Myers Squibb Co.; Bunge Ltd.; Calfrac Well Services Ltd.; Cardinal Health Inc.; Celgene Corp.; CME Group Inc.; Coca-Cola Enterprises Inc.; Colgate-Palmolive Co.; ConocoPhillips; DDR Corp; Deutsche Bank AG; Domino's Pizza Inc.; Domtar Corp.; Dundee Energy Ltd.; Dunkin' Brands Group Inc; Expedia Inc.; Fairfax Financial Holdings Ltd.; First Quantum Minerals Ltd.; Genworth Financial Inc.; Genworth MI Canada Inc.; Gigamon Inc.; Gilead Sciences Inc.; GMP Capital Inc.; Groupon Inc.; HudBay Minerals Inc.; Interfor Corp.; Juniper Networks Inc.; LinkedIn Corp.; Marathon Petroleum Corp.; MasterCard Inc.; MEG Energy Corp.; MSCI Inc.; National Fuel Gas Co.; National Oilwell Varco Inc.; NextEra Energy Inc.; OceanaGold Corp.; Pandora Media Inc.; Penn West Petroleum Ltd.; Pinnacle Foods Inc.; PPL Corp.; Raytheon Co.; RDM Corp.;  Rogers Sugar Inc.; Royal Gold Inc.; Superior Plus Corp.; Time Warner Cable Inc.; Uni Select Inc.; Vale SA; Virgin America Inc.; Waste Management Inc.; Western Energy Services Corp.

Also see: Thursday's small-cap stocks to watch

With files from wire services

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