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.
Soon after Wall Street breathed a collective sigh of relief that the Volcker Rule on bank trading wasn't as restrictive as some had feared, there's more sighs over an agreement on the U.S. budget: Rep. Paul Ryan and Sen. Patty Murray agreed on a 2014 budget deal that should prevent any government shut down in early 2014. President Barack Obama has already praised the deal.
That said, stocks are taking the good news in stride. In Europe, stocks rose just 0.4 per cent. In Japan, the Nikkei 225 fell 0.6 per cent in overnight trading. And U.S. futures showed the Dow Jones industrial average and the broader S&P 500 looking almost unchanged before markets open.
In addition to several Canadian and U.S. earnings reports, Investors will be looking at Home Depot Inc. today. The home retailer said it will meet its profit goals a year earlier than planned, which is good news for the company but also a potentially important window onto the health of the U.S. housing market. Later in the morning, we'll get a look at U.S. mortgage applications.
Here's a closer look at what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 +0.10 per cent; Dow +0.09 per cent; Nasdaq +0.01 per cent; S&P Toronto -0.01 per cent
Hong Kong's Hang Seng -1.71 per cent
Shanghai composite index -1.50 per cent
Japan's Nikkei -0.62 per cent
London's FTSE 100 +0.27 per cent
Germany's DAX +0.21 per cent
France's CAC 40 +0.68 per cent
Commodities:
WTI crude oil (Nymex Jan) -0.16 per cent at $98.35 (U.S.) a barrel
Gold (Comex Feb) -0.29 per cent at $1,257.50 (U.S.) an ounce
Copper (Comex Dec) +0.29 per cent at $3.28 (U.S.) a pound
Currencies:
Canadian dollar at 94.43 (U.S.), vs. 94.31 at Tuesday's North American close.
U.S. dollar index up 0.006 at 79.97
Bonds:
U.S. 10-year Treasury yield 2.82 per cent, up 0.02
ECONOMIC INDICATORS:
No major reports scheduled.
STOCKS TO WATCH:
BlackBerry shares are down 2.8 per cent in the premarket. Citibank analyst Ehud Gelblum assumed coverage of the stock from Jim Suva and late Tuesday downgraded BlackBerry to "sell" from "hold" and cut Suva's price target to $4 (U.S.) from $7.
Hudson Bay Q3 adjusted EPS was 7 cents, below the Street expectation of 11 cents. Same-store sales rose 5.7 per cent.
MasterCard Inc. rose more than 4 per cent in premarket activity after it announced an 83 per cent boost to its quarterly dividend and said it would split its shares. The share price has risen 55 per cent this year.
Smith & Wesson shares are climbing in the premarket as it reported a 27.4 per cent spike in handgun sales. Its Q2 EPS of 28 cents beat the Street estimate of 22 cents.
Costco Q1 profit was 96 cents versus the $1.02 Street estimate. Shares are down 2.2 per cent in the premarket.
Joy Global reported adjusted Q4 earnings of $1.11 a share, missing the Street consensus by a penny. The company provided full-year guidance well below Street expectations, sending shares down about 0.4 per cent in the premarket.
Other earnings today include: Laurentian Bank; North West Co.; Whistler Blackcomb; Nordson; The Men's Wearhouse.
The Bank of Nova Scotia and two other banks are bidding for a stake in Chilean bank CorpBanca Stake, according to the Wall Street Journal.
Encana said it plans to cut capital investment by 10 per cent next year but does not expect its forecasted production levels to change.
ANALYST ACTIONS:
Industrial Alliance slashed its price target on Zenn Motor to $4 (Canadian) from $11 but reiterated a "speculative buy" rating.
Wells Fargo upgraded Groupon to "outperform" from "market perform." It raised its valuation range to $13 (U.S.) to $14 from $5 to $6.
JPMorgan upgraded American Airlines to "overweight" from "neutral" with a price target of $37 (U.S.) and added the stock to its "focus list."
Nomura Securities upgraded 3M to "buy" from "neutral" and raised its price target to $150 (U.S.) from $128.
Goldman Sachs upgraded FirstEnergy to "neutral" from "sell" and maintained a $33 (U.S.) price target.
Goldman Sachs initiated coverage on Cott with a "neutral" rating and $9.50 (U.S.) price target.
Deutsche Bank upgraded ITC Holdings to "buy" from "hold" and raised its price target to $104 (U.S.) from $95.
THIS MORNING'S TOP INVESTING LINKS:
High-yield spreads have hit a six-year low.
Why diversification isn't working.
Another reason to doubt we're in a market bubble: there is still a lot of cash still sitting on the sidelines.
The rise of Internet shopping is far from bringing an end to traditional retail.
Here's who shouldn't be buying low volatility equity ETFs.
The most successful new U.S. ETFs of 2013.
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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