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 pointing to some solid gains at the open this morning, as traders bet that key U.S. GDP and employment data later this week will provide evidence that the Federal Reserve won't be in any rush to scale back its stimulus efforts.
Corporate earnings reports are primarily driving sentiment across the globe this morning, with losses in major European indexes on Tuesday prompting some renewed buying there this morning. The European Central Bank is meeting on Thursday and some market observers are expecting easing measures of some sort - though an interest rate cut looks iffy at this point.
Here in Canada, several widely held stocks have reported their third-quarter results, which we detail below. Perhaps the biggest focus today in the corporate world will come after the closing bell, when Twitter is expected to price its initial public offering. It intends to sell 70 million shares at a price somewhere between $23 (U.S.) and $25. It starts trading on the New York Stock Exchange on Thursday.
Now, here's a closer look at what's going on this morning and what to look for later today.
MARKETS:
Equities:
Futures: S&P 500 +0.48 per cent; Dow +0.42 per cent; Nasdaq +0.36 per cent; S&P Toronto +0.55 per cent
Hong Kong's Hang Seng -0.01 per cent
Shanghai composite index -0.80 per cent
Japan's Nikkei +0.78 per cent
London's FTSE 100 +0.08 per cent
Germany's DAX +0.40 per cent
France's CAC 40 +0.93 per cent
Commodities:
WTI crude oil (Nymex Dec) +0.82 per cent at $94.14 (U.S.) a barrel
Gold (Comex Dec) +0.77 per cent at $1,318.10 (U.S.) an ounce
Copper (Comex Dec) +0.29 per cent at $3.27 (U.S.) a pound
Currencies:
Canadian dollar at 95.71 (U.S.), vs. 95.62 at Tuesday's North American close.
U.S. dollar index down 0.19 at 80.51
Bonds:
U.S. 10-year Treasury yield 2.66 per cent, down 0.01
ECONOMIC INDICATORS TO WATCH:
Canadian building permits rose 1.7 per cent in September, much below the 6 per cent estimate. This following a revised 20 per cent decline in August.
STOCKS TO WATCH:
Tesla shares are down 11 per cent in the premarket after reporting earnings late Tuesday that beat expectations but left investors disappointed with the number of Model S units it sold in the third quarter.
Enbridge reported Q3 adjusted EPS of 34 cents versus the Street estimate of 35 cents.
Magna reported Q3 adjusted profit of $1.39 a share versus the $1.34 Street view.
Talisman reported an adjusted loss of 4 cents versus the Street view of 1 cent.
Agrium reported adjusted earnings of 50 cents versus 57 cents Street estimate.
Torstar reported Q3 adjusted EPS of $0.21 - matching estimates - as revenues dropped by 8 per cent.
Wi-LAN swung to a loss in the third quarter on litigation costs that more than doubled over the year-earlier period. The company that said last month it is exploring "strategic alternatives" including a possible sale of the company, posted an adjusted third-quarter loss of zero cents per share compared with profit of eight cents a year ago.
Penn West Petroleum said it aims to sell non-core assets worth $1.5-billion to $2-billion before 2015 as part of a plan to focus on fewer fields centred on the Cardium field in Alberta. It also reported earnings of 6 cents a share, topping expectations.
Shares in Abercrombie & Fitch are down 7 per cent in the premarket after the retailer said same-store sales sank 14 per cent.
Other earnings today include: Calfrac, Canaccord Genuity, Dundee REIT, Extendicare, New Flyer, Ralph Lauren, Time Warner, Molson Coors, Whole Foods, Mondelez, Novatel.
Canadian telecom stocks will be in focus as U.S. giant Verizon Communications appears to be taking a second look at the Canadian market after hiring a consultant to lobby the federal government on its telecommunications policy.
ANALYST ACTIONS:
Deutsche Bank upgraded EnCana to "hold" from "sell" with a price target of $22 (Canadian).
Industrial Alliance downgraded Cineplex to "hold" from "buy" because of limited upside to its $42 (Canadian) target. Euro Pacific Canada downgraded its rating to "hold" from "buy" with a price target of $43.
M Partners upgraded Wajax Corp. to "buy" from "hold" and maintained a $39 (Canadian) price target.
Canaccord Genuity downgraded Timmins Gold to "sell" from "hold" and cut its target to $1.20 (Canadian) a share from $1.65.
RBC Dominion Securities hiked its target on Canadian Tire to $114 (Canadian) from $93 and maintained an "outperform" rating.
Canaccord Genuity hikes price target on Yellow Media to $18.70 (Canadian) from $14.50 and maintains "buy" rating.
RBC Dominion Securities hiked its price target on WestJet to $31 (Canadian) from $28 and maintained an "outperform" rating.
Canaccord Genuity raised its price target on Paladin Labs to $100 (Canadian) from $63 after Endo Health's announcement it plans to take over the company. But Canaccord continues to rate the stock as a "hold" after its rally Tuesday. RBC Dominion Securities downgraded Paladin to "sector perform" and raised its target also to $100.
Barclays initiated coverage on Shaw Communications with an "equalweight" rating and $26 (Canadian) price target; on Rogers Communications with an "equalweight" rating and $48 (Canadian) price target; and on Telus with an "overweight" rating and $39 (Canadian) price target.
Wedbush cut its price target on Tesla Motors to $205 (U.S.) from $240 and maintained an "outperform" rating. Goldman Sachs raised its price target to $104 from $95 and maintained a "neutral" rating.
Canaccord Genuity downgraded Halcon Resources to "hold' from "buy" and cut its price target to $6 (U.S.) from $7.
Canaccord upgraded T-Mobile to "buy" from "hold" and raised its price target to $33 (U.S.) from $25.
TD Securities upgraded Louisiana-Pacific to "hold" from "reduce" and raised its price target to $16.50 (U.S.) from $16.
JPMorgan downgraded AMR Corp. to "neutral" from "overweight" and raised its price target to $10.50 (U.S.) from $9.50.
Canaccord Genuity raised its target on Michael Kors Holdings to $96 (U.S.) from $90 and maintained a "buy" rating.
RBC downgraded Tornier to "sector perform" from "outperform" and cut its target to $17 (U.S.) from $21.
Jefferies raised its price target on AOL to $60 (U.S.) from $55 and reiterated a "buy" rating.
M Partners initiated coverage on Golden Queen Mining with a "buy" rating and $1.90 (Canadian) price target.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
The last two months of the year are generally great when the market has been up a lot already in the first 10 months.
IPOs are surging just ahead of the big Twitter debut.
All 10 sectors of the S&P have posted double-digit gains year-to-date, a rare market trait.
A report suggests Apple has improved its profit margins thanks to the new iPad Air.
U.S. unemployment will have to drop a good deal further before the Federal Reserve begins to raise interest rates, if the central bank follows recommendations from its own economists.
What do you get when you cross an overbought market with too few bears? This time around, all it has produced is a lot of frustrated contrarian traders.
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
Darcy Keith