The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
North American stock markets appear headed for a higher open, as crude oil continues its recovery this morning and markets await another reading on the manufacturing sector in the U.S. that may shed some light on whether the economy can bounce back from a weak first quarter.
Dow and S&P 500 futures are up about 0.3 per cent; TSX futures are modestly in the green.
China released lacklustre manufacturing numbers overnight, but global traders are generally reacting positively to the data, believing that it will cement Beijing's intentions to unveil further economic stimulus measures. The HSBC/Markit Purchasing Managers' Index (PMI) fell to 48.9 in April - the lowest level since April 2014 - from 49.6 in March, as demand faltered and deflationary pressures persisted.
The number was weaker than a preliminary reading of 49.2, and below the 50-point level that separates growth from contraction Some market watchers are concerned that second-quarter economic growth in the country may dip below 7 per cent for the first time since the financial crisis.
PMI data in Europe today were a little more upbeat. The final euro zone manufacturing Purchasing Managers' Index for April came in at 52.0, above an earlier reading of 51.9 but slightly below March's figure of 52.2.
Greece, meanwhile, continues to be in focus in Europe. Officials say talks between Greece and its international creditors on how to stave off bankruptcy have made headway and will continue with the aim of reaching an agreement later this month.
Brent crude overnight rose towards $67 (U.S.) a barrel, reaching a 2015 high, as traders bet the weak PMI data will encourage the further stimulus measures in China. There also continues to be expectations the global supply glut in oil will ease in coming weeks. Oil services firm Baker Hughes on Friday said the number of active rigs in the U.S. has fallen for a record 21 straight weeks to the fewest since September 2010.
Meanwhile, more first-quarter earnings will be unleashed today in another heavy week of first-quarter results. The earnings season has been slightly better than expected overall for the first quarter; Of the S&P 500 members that have already released results this season, 73 per cent beat profit projections and 49 per cent topped sales estimates.
Now, here's a closer look at what's going on this morning and what is still to come.
Futures:
S&P 500 +0.2 per cent; Dow +0.3 per cent; Nasdaq +0.2 per cent
Equities:
Hong Kong's Hang Seng -0.03 per cent
Shanghai composite index +0.86 per cent
Japan's Nikkei Closed for holiday
London's FTSE 100 Closed for holiday
Germany's DAX +1.31 per cent
France's CAC 40 +0.96 per cent
Stoxx 600 +0.85 per cent
Commodities:
WTI crude oil (Nymex Jun) +0.32 per cent at $59.34 (U.S.) a barrel
Natural gas (Nymex Jun) -0.72 per cent at $2.76
Gold (Comex Jun) +0.60 per cent at $1,181.60 (U.S.) an ounce
Copper (Comex Jul) -0.75 per cent at $2.91 (U.S.) a pound
Currencies:
Canadian dollar at 82.52 (U.S.), up 0.0028
U.S. dollar index up 0.26 at 95.55
Bonds:
U.S. 10-year Treasury yield 2.13 per cent, up 0.01
ECONOMIC DATA:
(10 a.m. ET) U.S. factory orders for March. Consensus estimate is a 2-per-cent increase from February
(11:45 a.m. ET) Finance minister Joe Oliver speaks at Canadian Club in Toronto on Canada's economic and fiscal future
STOCKS TO WATCH:
McDonald's Corp's new chief executive on Monday laid out initial plans for luring back customers, boosting sales and transforming the world's biggest restaurant chain by revenue into a "modern, progressive burger company." The plans include organizing McDonald's business around four new operating divisions, selling restaurants to franchisees, cutting corporate costs, improving food quality and taking layers out of its "cumbersome" management structure.
Cisco Systems said John Chambers will step down as CEO and has named Chuck Robbins as his replacement.
Dow Chemical Co said it would cut 1,500 to 1,750 jobs, or as much as 3 percent of its global workforce, as part of a broader plan to reduce costs by $1 billion over three years. Dow said the job cuts were being made as a result of its decision to sell a chunk of its century-old chlorine business to Olin Corp for $5 billion.
Fairfax Financial Holdings says it is working on a deal to buy a 35 per cent equity stake in BIDV Insurance, which has commercial ties with one of Vietnam's largest banks and a presence in Cambodia and Laos. Fairfax didn't disclose financial terms of the agreement, which it expects to close in the third quarter of 2015.
HudBay Minerals said a strike began at its Manitoba operations, but that it should not impact production for the year.
Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, said it was scrapping three rigs in the face of weak demand due to a steep fall in global crude prices. The company said on Monday it recorded an impairment charge of $319 million for eight rigs, including the rigs being retired, in its first-quarter results. The charge caused the company to report a quarterly loss for the first time since June 2004. Adjusted quarterly profit for the company was 50 cents a share, versus Street expectations for 43 cents.
Comcast Corp. reported adjusted earnings in the first quarter of 79 cents a share, beating the average analyst estimate of 74 cents.
Tyson Foods Inc., the largest U.S. meat supplier, posted fiscal-second-quarter profit that exceeded analysts' estimates as chicken demand grew. Earnings per share excluding one-time items were 75 cents a share, compared with the Street view of 72 cents.
Other earnings today include: Alnylam Pharms Inc; AMC Networks Inc.; AmeriGas Partners L.P.; Ares Capital Corp.; Avis Budget Grp Inc.; Cablevision Systems Corp.; Cimarex Energy Co.; CNA Financial Corp.; DaVita HealthCare Partners Inc.; Denny's Corp.; Dominion Resources Inc.; easyhome; Ensign Energy; Fidelity National Financial FNFV Grp; GuestLogix; Health Net Inc.; MacDonald Dettwiler; Macquarie Infrastructure Company; MGM Resorts Intl; Newalta; Points International; Response Biomedical; Seven Generations; Tembec; UGI Corp.; Versartis Inc.; Westlake Chemical Corp.; Xencor Inc.; XPO Logistics Inc.
ANALYST ACTIONS:
Stifel upgraded Twitter to "hold" from "sell" and removed its price target of $36 (U.S.).
SolarCity was downgraded to "neutral" from "outperform" at RW Baird and its price target was cut to $65 (U.S.) from $76.
With files from wire services
Darcy Keith