A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 24, 2016.
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 will return.
U.S. and Canadian stock-index futures declined, indicating equities will extend losses into another day, amid investor concern over economic growth prospects and low oil prices.
Contracts on the S&P 500 Index expiring in September fell 0.2 percent to 2,148 in New York. Stocks declined the most in four weeks yesterday, as sliding crude prices and lackluster consumer spending data revived anxiety that global growth will falter. Dow Jones Industrial Average futures lost 44 points, or 0.2 percent, to 18,204 today. TSX futures were just slightly in negative territory.
"I don't see a huge move to the upside, but because of all the skepticism around I don't see a huge move to the downside either, so I think we're stuck in the trading range," said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. "After all the talk about the banks in Europe and the lower oil price, it really makes it hard for the market to move much higher in the short term. It's a negative attitude toward the market and the economy from all over."
At 18.3 times this year's projected earnings, the S&P 500 is still trading near its highest multiple in more than a decade. Some stronger-than-estimated financial results and speculation that central banks will maintain loose monetary policies have helped underpin equities at near record levels.
But investors are looking for clear signs of economic progress after last week's disappointing growth report, and will continue to asses data for clues on the strength of the U.S. A release today from the ADP Research Institute is forecast to show employment grew by 170,000 in July, while a separate report is estimated to point to an expansion in services activity last month.
Amid the uncertainty, traders have pushed back their expectations for the next Federal Reserve interest-rate increase. The first month with at least even odds for a hike is now September 2017, compared with February a week ago.
Earnings also remain in focus. S&P 500 companies posting results this week include Kellogg Co., Viacom Inc. and Priceline Group Inc. About 57 percent of index members that have reported so far beat sales projections, while 79 percent topped profit estimates. Analysts estimate profit at S&P 500 companies fell 3.2 percent in the second quarter.
Now, here is a closer look at morning markets and key corporate and economic news.
MARKET DATA: (as of about 7 a.m. ET)
Futures
Dow -0.18 per cent; S&P 500 -0.17 per cent; Nasdaq: -0.20 per cent; TSX 60: -0.04 per cent
Equities
Japan's Nikkei -1.88 per cent
Shanghai composite index +0.27 per cent
Hong Kong's Hang Seng -1.76 per cent
Germany's DAX -0.02 per cent
London's FTSE -0.22 per cent
France's CAC 40 -0.41 per cent
Commodities
WTI crude oil (Nymex Aug) +0.61 per cent at $39.75 (U.S.) a barrel
Gold (Comex Aug) -0.17 per cent at $1,370.20 (U.S.) an ounce
Copper (Comex July) -0.61 per cent at $2.1955 (U.S.) a pound
Currencies
Canadian dollar -0.11 at 76.18 cents (U.S.)
U.S. dollar index +0.195 at 95.259
Bonds
Canada 10-year bond yield +0.006 at 1.084 per cent
KEY ECONOMIC RELEASES
A report today showed companies in July added 179,000 workers to U.S. payrolls, according to the ADP Research Institute. The median forecast of 41 economists surveyed by Bloomberg projected an increase of 170,000. Estimates ranged from 140,000 to 198,000.
Still to come:
(9:45 a.m. ET) U.S. Markit services and composite PMI for July.
(10 a.m. ET) U.S. non-manufacturing ISM for July. Consensus is 56.0, down from 56.5 in June.
KEY STOCKS TO WATCH
Canadian e-commerce software maker Shopify Inc reported a bigger quarterly loss as operating expenses rose. On a per-share basis, the net loss attributable to shareholders increased to 10 cents from 6 cents a year earlier. That was wider than the Street consensus of an 8-cent loss. Shopify's revenue rose to $86.6 million from $44.9 million - but that also fell short of Street forecasts of $80.6 million..
Time Warner Inc reported a higher-than-expected quarterly profit as it signed up more viewers for its premium Home Box Office network, and disclosed a 10 percent stake in streaming TV service Hulu. The company's shares were up 1.58 percent in premarket trading on Wednesday.
American International Group Inc. added 3.5 percent after saying it will buy back $3 billion of stock following a 6.3 percent increase in second-quarter profit.
Western Digital dropped 4 percent in the permarket and was the top loser among S&P components after Goldman Sachs cut it to "sell" from "neutral."
Electronic Arts fell 2.5 percent after its sales forecast missed analysts' estimates.
U.S. oil and gas producer Noble Energy Inc reported a bigger quarterly loss due to weak oil prices, but raised its full-year forecast for sales volume.
Fiat Chrysler Automobiles NV jumped 7.7 percent as people familiar with the matter said Samsung Electronics Co. is in advanced talks to buy some or all of the operations of the Italian carmaker's auto-parts manufacturer Magneti Marelli.
Delphi Automotive, a global vehicle components supplier, on Wednesday reported second-quarter earnings that narrowly beat Wall Street expectations as its revenue grew in North America, Europe and Asia but fell in South America. It earned $1.59 per share, in the second quarter, excluding special items, compared with expectations by analysts polled by Thomson Reuters I/B/E/S of $1.55 per share. Revenue of $4.21 billion was up 9 percent and near expectations of $4.22 billion.
Other earnings today include: 3D Systems Corp.; Acadian Timber Corp.; Aegerion Pharmaceuticals Inc.; Agrium Inc.; Arsenal Energy Inc.; Brookfield Infrastructure Partners LP; Brookfield Real Estate Services Inc.; Cardiome Pharma Corp.; Clarke Inc.; Clorox Co.; Endeavour Silver Corp.; Equinix Inc.; Finning International Inc.; First Capital Realty Inc.; Gear Energy Ltd.; Godaddy Inc.; High Liner Foods Inc.; IAMGOLD Corp.; Kinaxis Inc.; Manitoba Telecom Services Inc.; Marathon Oil Corp.; Metlife Inc.; Newalta Corp.; Occidental Petroleum Corp.; Office Depot Inc.; Paramount Resources Ltd; Progressive Corp.; Prudential Financial Inc.; Redknee Solutions Inc.; Rio Tinto PLC; Spectra Energy Corp.; Square Inc.; Sunoco LP; Tallgrass Energy GP LP; Tesla Motors Inc.; Tourmaline Oil Corp.; TSO3 Inc.; Waste Connections Inc.; Zoetis Inc.
With files from Bloomberg and other wire services