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.
It's going to be hard to match the stock market gains of 2013 this year, and the start of trading on Thursday suggests that investors are going to wait for clearer signals on global economic activity before committing: Stocks were down in Europe and Asia, while U.S. futures pointed to a dip at the start of trading.
U.S. stock index futures were lower ahead of the opening bell, with futures for the Dow Jones industrial average down 24 points. Futures for the broader S&P 500 were down 3 points or 0.2 per cent. In Europe, the U.K.'s FTSE 100 was down 0.3 per cent and Germany's DAX index was down 0.5 per cent. Japan's market was closed, but China's Shanghai stock exchange composite index fell 0.3 per cent.
The deal that's grabbing a lot of attention was announced Wednesday: Fiat SpA is buying full control over Chrysler Group PLC in a $4.4-billion agreement with the United Auto Workers retiree health care trust. The move drove up Fiat shares by 13 per cent in European trading.
However, economic news is likely to exert some pressure on stocks. Two surveys of Chinese manufacturing activity showed a decline in December, raising again concerns over a slowing economy there that will overshadow an upbeat reading on European factory output.
Here's a closer look at what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 -0.24 per cent; Dow -0.24 per cent; Nasdaq -0.33 per cent; S&P toronto +0.08 per cent
Hong Kong's Hang Seng +0.14 per cent
Shanghai composite index -0.33 per cent
Japan's Nikkei Closed for holiday
London's FTSE 100 -0.31 per cent
Germany's DAX -0.49 per cent
France's CAC 40 -1.02 per cent
Commodities:
WTI crude oil (Nymex Feb) -0.73 per cent at $97.70 (U.S.) a barrel
Gold (Comex Feb) +1.53 per cent at $1,220.10 (U.S.) an ounce
Copper (Comex Mar) +0.24 per cent at $3.40 (U.S.) a pound
Currencies:
Canadian dollar at 94.02 (U.S.), vs. 93.42 at Tuesday's North American close.
U.S. dollar index up 0.44 at 80.55
Bonds:
U.S. 10-year Treasury yield 3.02 per cent, down 0.01
ECONOMIC INDICATORS:
U.S. initial jobless claims for last week fell 2,000 to 339,000. Economists expected about 345,000.
U.S. Market PMI manufacturing flash index for December rose to 55.0 from 54.4. That was slightly above Street expectations of 54.5.
(10 a.m. ET) U.S. ISM manufacturing index fro December, expected to dip to 56.8 in December from 57.3 previously.
(10 a.m. ET) U.S. construction spending for November, forecast to rise 0.7 per cent after falling 0.3 per cent in October.
STOCKS TO WATCH:
Bombardier on New Year's Eve announced it won an order for 38 business jets valued at $2.2-billion (U.S.). It's the third and largest purchase announced by the planemaker in the past week.
Shares in Italian car maker Fiat SpA are soaring overseas after announcing Wednesday it has signed an agreement to buy the stake in U.S. auto maker Chrysler Group LLC it does not already own.
Macy's has resolved its breach-of-contract lawsuit against Martha Stewart Living Omnimedia. Terms were not disclosed.
ANALYST ACTIONS:
Wells Fargo downgraded Apple to "market perform" from "outperform" and maintained a $536 (U.S.) to $581 valuation range.
Cowen downgraded Sprint to "market perform" from "outperform" but raised its price target to $8.25 (U.S.) from $7.50.
Jefferies upgraded Urban Outfitters to "buy" from "hold" and called it a top pick for 2014. Its price target is $54 (U.S.).
Jefferies upgraded American Eagle Outfitters to "buy" from "hold" and maintained a price target of $19 (U.S.).
Jefferies downgraded Abercrombie & Fitch to "hold" from "buy" with a price target of $30 (U.S.).
Jefferies downgraded Aeropostale to "hold" from "buy" and slashed its price target to $7 (U.S.) from $12.
KeyBanc upgraded US Steel to "buy" from "hold" with a price target of $37 (U.S.).
THIS MORNING'S TOP INVESTING LINKS:
For the first time in 44 years, Warren Buffett's Berkshire Hathaway is expected to report that it failed to incrase net worth more rapidly than the S&P 500 index during the past five years.
Everyone's becoming too short term when it comes to investing.
Why REITs probably do not provide diversifying, real returns for the long run.
The best and worst performing U.S. industries of 2013.
Junk bond spreads to U.S. Treasuries have plummeted.
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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