Skip to main content
inside the market

The Before the Bell report is constantly updated to reflect the latest news developments and market moves in the premarket. Check back later for updates.

U.S. and Canadian stock futures are edging up this morning, as traders absorb the delayed September U.S. jobs report and a rush of earnings reports from some of the biggest corporations in the U.S.

The jobs figures, which would have been released at the start of this month if not for the partial U.S. government shutdown, are being taken with a grain of salt given that the employment snapshot was taken before the budgetary mess heated up in Washington and threw thousands of workers temporarily off the job. Market players have also become increasingly convinced that the U.S. Federal Reserve won't begin tapering its $85-billion-a-month in bond buying until next year, given risks that another budget battle among the Republicans and Democrats will erupt in a few months.

The jobs report was a little weaker than expected, adding further credibility to the belief that Fed bond-buying tapering won't be happening for some time.

Today's most interesting trading activity will likely be in individual stocks, and there will be many catalysts for volatility. Some 30 S&P 500 companies will be reporting third-quarter results. Highlights are below in our Stocks to Watch section.

Profits at the 111 companies that have reported results so far grew 4.5 per cent, with sales gaining 1.9 per cent, according to Bloomberg tallies. Some 71 per cent of the stocks topped analysts' earnings estimates, with only 53 per cent beating on sales.

Now, here's more on what's going on this morning and what is to come.

MARKETS:

Equities:

Futures: S&P 500 +0.24 per cent; Dow +0.25 per cent; Nasdaq +0.32 per cent; S&P Toronto +0.30 per cent

Hong Kong's Hang Seng -0.52 per cent

Shanghai composite index -0.82 per cent

Japan's Nikkei +0.13 per cent

London's FTSE 100 +0.40 per cent

Germany's DAX +0.40 per cent

France's CAC 40 +0.42 per cent

Commodities:

WTI crude oil (Nymex Dec) -0.30 per cent at $99.38 (U.S.) a barrel

Gold (Comex Dec) -0.21 per cent at $1,313.00 (U.S.) an ounce

Silver (Comex Dec) -0.80 per cent at $22.10 (U.S.) an ounce

Copper (Comex Dec) unchanged at $3.30 (U.S.) a pound

Currencies:

Canadian dollar at 97.16 (U.S.), up 0.0015 from Monday's North American close.

U.S. dollar index up 0.06 at 79.75

Bonds:

U.S. 10-year Treasury yield 2.56 per cent, down 0.05

ECONOMIC INDICATORS TO WATCH:

Statscan said retail sales in August rose 0.2 per cent from July, below the Street view calling for a rise of 0.5 per cent.

The U.S. created 148,000 jobs in September, below the 185,000 jobs the Street expected. August figures were revised higher, however, and the unemployment rate slipped to 7.2 per cent from 7.3 per cent.

(10 a.m. ET) U.S. releases construction spending for August, forecast to rise 0.5 per cent from July.

STOCKS TO WATCH:

Apple expected to unveil latest iPad at 1 p.m. (ET) media event.

Netflix shares are up 10 per cent in the premarket after late Monday reporting a tripling in quarterly profits, beating expectations.

Saks said it reached an agreement to settle lawsuits by investors seeking to block the retailer's $2.4-billion acquisition by Canadian department-store chain Hudson's Bay.

Texas Instruments shares are down 2.4 per cent in the premarket after reporting late Monday that its third-quarter profits fell to 56 cents a share from 67 cents, with revenues also dropping.

Dupont & Co reported adjusted profit of 45 cents a share, beating forecasts for 41 cents. Revenue came in just shy of Street forecasts. Shares are flat in the premarket.

Freeport-McMoran reported third-quarter earnings per share of 79 cents, beating the Street estimate of 62 cents, while revenues of $6.17-billion beat the estimate of $5.68-billion. Shares are up 4 per cent in the premarket.

Delta Air Lines reported adjusted profit of $1.41 per share, 5 cents per share more than expected by analysts. Revenue rose 6 per cent to $10.49-billion, about what analysts were expecting. Shares are up 3.4 per cent in the premarket.

McGraw Hill Financial reported a higher-than-expected 56 percent jump in quarterly profit and raised its full-year adjusted profit forecast. Shares are up 0.3 per cent.

Other earnings today include: Canadian National Railway, Celestica, Danier Leather, Novadaq, Whirlpool, Delta Air Lines, Lockheed Martin, Coach, Harley-Davidson, Unisys.

CVTech Group has been awarded several contracts worth a total of $45.8-million (Canadian), including one to build a 33-kilometre electricity transmission line for Hydro-Quebec.

ANALYST ACTIONS:

At least 12 brokerages raised their price targets on shares of Netflix, but most of the price targets are still below the current share price. Evercore Partners upgraded Netflix to "equalweight" from "underweight" and raised its price target to $350 (U.S.) from $150. Jefferies raised its price target by $55 to $215 but maintained its "underperform" rating. RBC Dominion Securities raised its price target to $440 from $330 and maintained an "outperform" rating.

CIBC downgraded Trinidad Drilling to "sector performer" from "sector outperformer" but raised its price target to $11.50 (Canadian) from $11.

CIBC downgraded Total Energy Services to "sector performer" from "sector outperformer" but raised its target to $19.50 (Canadian) from $19.25

CIBC upgraded Ivanhoe Mines to "sector outperformer" from "sector performer" and raised its price target to $4.50 (Canadian) from $4.

CIBC downgraded Transcontinental to "sector performer" from "sector outperformer" but raised its price target to $16.50 (Canadian) from $15.50.

CIBC raised its price target on Mitel Networks to $8 (U.S.) from $6 and maintained a "sector outperformer" rating.

Raymond James downgraded Platinum Group Metals to "market perform" from "outperform" and cut its price target to $1.25 (Canadian) from $1.50.

Credit Suisse downgraded North American Palladium to "neutral" from "outperform" with a price target of $1.10 (Canadian).

Barclays downgraded Baytex Energy to "equalweight" from "overweight" with a price target of $44.68 (U.S.).

M Partners set a $7.50 (Canadian) price target and "buy" rating for Partners REIT after last week placing it under review following its major shareholder filing for bankruptcy protection.

JPMorgan upgraded FedEx to "overweight" from "neutral" and raised its price target to $153 (U.S.) from $134.

THIS MORNING'S TOP INVESTING READS ON THE WEB:

Warren Buffett's Berkshire Hathaway has regained its ranking as the favourite stock pick among U.S. and Canadian multimillionaires, beating Apple.

How to use Canadian-listed ETFs to defer taxes on capital gains.

Alan Greenspan has won the title of 'the worst ex-central banker in the world' according to economist Paul Krugman.

Five banks Warren Buffett is betting on for 2014.

Investors borrowed a record amount against their brokerage accounts last month.

The U.S. market is overbought.

Six things every investor must know about closed-end funds.

-----

For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe