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.
North American markets look set for a weaker session on Wednesday with renewed focus on how central banks are going to deal with extraordinary stimulus measures that have helped drive markets in recent years. Stock futures are falling further as the opening bell approaches, with Dow futures now off close to 0.6 per cent.
Just days after the European Central Bank slashed its key interest rate to 0.25 per cent, in an effort to confront the threat of deflation, the Bank of England has now moved forward its estimate for getting the U.K.'s unemployment rate down to 7 per cent. That raises the possibility that the U.K. could raise its key interest rate nine months earlier than expected.
In the United States, Federal Reserve official Dennis Lockhart said on Tuesday that the central bank could start to taper its monthly bond-purchases as soon as December. His comments follow an upbeat monthly payrolls report that took markets by surprise – raising optimism that the economy is gaining traction, but also the possibility that Fed stimulus is nearing an end.
In Canada, a survey by TransUnion found that average non-mortgage debt in the third quarter rose to $27,355, up $255 from the previous quarter and up 2.2 per cent over last year. While rate of indebtedness is slowing, it continues to creep higher, no doubt feeding anxieties about the housing market.
Stocks overseas were weak. The U.K.'s FTSE 100 was down 1.5 per cent and Japan's Nikkei 225 fell 0.2 per cent in overnight trading.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.53 per cent; Dow -0.55 per cent; Nasdaq -0.56 per cent; S&P Toronto -0.39 per cent
Hong Kong's Hang Seng -1.91 per cent
Shanghai composite index -1.82 per cent
Japan's Nikkei -0.15 per cent
London's FTSE 100 -1.59 per cent
Germany's DAX -0.96 per cent
France's CAC 40 -1.10 per cent
Commodities:
WTI crude oil (Nymex Dec) +0.14 per cent at $93.15 (U.S.) a barrel
Gold (Comex Dec) +0.44 per cent at $1,276.80 (U.S.) an ounce
Copper (Comex Dec) -1.98 per cent at $3.17 (U.S.) a pound
Currencies:
Canadian dollar at 95.37 (U.S.), vs. 95.30 at Tuesday's North American close.
U.S. dollar index down 0.01 at 81.18
Bonds:
U.S. 10-year Treasury yield -0.47 per cent
ECONOMIC INDICATORS TO WATCH:
No major reports scheduled.
STOCKS TO WATCH:
Loblaw Cos. lowered its 2013 forecast for profit growth due to thinner margins in the second half of the year. It also reported adjusted third-quarter profit of 73 cents per share, below the average analyst estimate of 80 cents.
Metro reported third-quarter EPS of $1.19 vs. the Street expectation of $1.22.
CAE raised its quarterly dividend by 1 cent to 6 cents a share.
Starbucks was ordered to pay $2.7-billion (U.S.) to Mondelez International Inc. to settle a 2010 dispute over coffee distribution. Shares are down 1.6 per cent in the premarket.
Macy's reported third-quarter EPS of 47 cents, beating the 39 cents Street consensus. Revenues also beat expectations and shares are up 6 per cent in the premarket.
ANALYST ACTIONS:
JPMorgan initiated coverage on Lululemon Athletica with an "overweight" rating and $84 (U.S.) price target.
CIBC downgraded Gabriel Resources to "sector underperformer" from "sector performer" and cuts target to 60 cents from $2, after draft mine law was rejected.
Industrial Alliance upgraded MacDonald, Dettwiler and Associates to "buy" from "hold" on share price depreciation and kept an $87 (Canadian) price target.
CIBC upgraded Argonaut Gold to "sector performer" from "sector underperformer" and raised its price target to $6 from $5.
Canaccord Genuity raised its price target on Rona to $11.50 (Canadian) from $10.75 and maintained a "hold" rating.
Desjardins Securities downgraded Maxim Power to "hold" from "buy" and maintained a $3.75 (Canadian) price target.
Industrial Alliance upgraded Gibson Energy to "strong buy" from "buy" and raised its target price to $32 (Canadian) from $29.
Raymond James raised its price target on Exchange Income Corp. to $22.75 (Canadian) from $20 and maintained a "market perform."
Susquehanna downgraded Intrepid Potash to "negative" from "neutral" and cut its price target to $10 (U.S.) from $12.
Goldman Sachs upgraded Qualcomm to "conviction buy" from "buy" with a price target of $80 (U.S.).
Credit Suisse downgraded Dean Foods to "neutral" from "outperform" and cut its price target to $19 (U.S.) from $24.
M Partners cut its price target on Enterprise Group to $1.65 (Canadian) from $2.05 and maintained a "buy" rating.
RBC Dominion Securities raised its price target on Atrium Innovations to $21 (Canadian) from $18 and maintained a "sector perform" rating.
THIS MORNING'S TOP INVESTING LINKS:
Gold traders aren't running scared. And that's why you should be.
10 laws of stock market bubbles.
When active funds make sense, according to a die-hard index fund advocate.
A close look at S&P 500 market breadth suggests things are pretty healthy.
Various data points suggest that the broader indexes don't have much more room to rise.
How much popularity can low volatility strategies stand?
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
David Berman