Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
U.S. and Canadian equity futures are modestly higher in the premarket after Friday's heavy sell-off.
February's non-farm payrolls report made it 12 consecutive months in which the United States has seen net job growth in excess of 200,000, its longest streak since 1994.
However, that report also caused traders to fret about a sooner-than-expected rate hike from the Federal Reserve, and a steeper glide path higher for rates than previously thought. Stocks sold off following that release as bond yields jumped.
"The fact the fed funds future is now pricing an 80 per cent chance of two moves from the Federal Reserve this year is keeping the U.S. dollar bid," wrote IG chief market strategist Chris Weston. "Friday's jobs report had its negatives, but on a net basis has probably solidified the idea that the March FOMC meeting will see the Fed lose its 'patient' stance on when higher rates will be targeted."
Asian markets initially took their cue from Friday's job numbers, with most opening lower. But Chinese equities managed to end higher while the Nikkei lost nearly a full per cent. Not helping matters was a revision to Japan's fourth-quarter real GDP growth down to 1.5 per cent at an annualized rate from the prior estimate of 2.2 per cent.
In Europe, what was thought to be a done deal – Greece's four-month bailout extension agreement – took a big step back this weekend. In Amsterdam, Eurogroup Chairman Jeroen Dijsselbloem said that Athens' list of reforms was "far from complete," and opined that the country was unlikely to receive any aid from its creditors this month.
And on the day that the European Central Bank launched full-scale quantitative easing, major European bourses are trading to the downside.
West Texas Intermediate futures are modestly lower, with crude still lingering below $50 per barrel (U.S.).
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 +0.1 per cent; Dow +0.04 per cent; Nasdaq +0.19 per cent
Equities:
Hong Kong's Hang Seng -0.17 per cent
Shanghai composite index +1.89 per cent
Japan's Nikkei -0.95 per cent
London's FTSE 100 -0.68 per cent
Germany's DAX -0.21 per cent
France's CAC 40 -0.62 per cent
Stoxx 600 -0.53 per cent
Commodities:
WTI crude oil (Nymex Apr) -0.42 per cent at $49.40 (U.S.) a barrel
Natural gas (Nymex Apr) -3.38 per cent at $2.743
Gold (Comex Apr) +0.82 per cent at $1,173.90 (U.S.) an ounce
Copper (Comex May) +0.69 per cent at $2.627 (U.S.) a pound
Currencies:
Canadian dollar at 79.51 (U.S.), up 0.0029
U.S. dollar index down 0.144 at 97.471
Bonds:
U.S. 10-year Treasury yield 2.2147 per cent, down 0.00267
ECONOMIC INDICATORS:
Canadian housing starts came in at an annualized rate of 156,276 in February, well below the consensus estimate of 175,000.
(10 a.m. ET) U.S. Federal Reserve Labour Market Conditions Index for February, estimated to rise 5.0 points from January.
STOCKS TO WATCH:
General Motors Co. said it will buy back $5-billion in stock after reaching an agreement with activist investor Harry Wilson. Shares are up 2 per cent in the premarket.
Tesla Motors, Inc. is shedding jobs in China as part of a restructuring effort. The electric automaker missed its sales target for the country in 2014.
Apple Inc. is holding a special event to provide more details about its smartwatch as well as possible upgrades to existing products.
Crew Energy Inc. reported a loss of $0.23 per share for the fourth quarter, with production falling by 27 per cent relative to the same period in 2013. Management set a capital budget for 2015 of $185-million and sees production averaging 20,000 to 22,000 barrels of oil equivalent per day, less than average 2014 production of more than 24,000 barrels of oil equivalent per day.
Alcoa Inc. has reached an agreement to buy RTI International Metals Inc. for roughly $1.26-billion in stock, which expands its footprint in the titanium and specialty metals industries.
McDonald's Corp. said same-store sales in the U.S. fell 4 per cent in February and 1.7 per cent worldwide, bigger declines than analysts had anticipated.
Other earnings include: Com Dev, Fortress Paper, Westport Innovations, American Midstream Partners, Atlas Financial, Casey's General Stores, Korn/Ferry International, Millennial Media Inc., Piedmont Natural Gas, Primo Water Corp., Scientific Games Corp., United Natural Foods Inc., Urban Outfitters Inc., Westport Innovations Inc.
ANALYST ACTIONS:
BlackBerry Ltd. was downgraded to "sell" from "neutral" by Goldman Sachs, with a price target of $9 (U.S.).
Cenovus Energy Inc. was upgraded to "outperform" from "market perform" at FirstEnergy.
Perpetual Energy Inc. was lowered to "reduce" from "hold" at TD Securities.
Teck Resources Ltd. was downgraded to "buy" from "top pick" at Cormark Securities.