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.
Global stocks look set to take a breather on Wednesday, ahead of the release of minutes from the last Federal Reserve policy meeting.
U.S. stock index futures were relatively flat. Futures for the Dow Jones industrial average were down 18 points. Futures for the broader S&P 500 were down about 2 points, a day after the benchmark index snapped a three-day losing streak with an 11-point rally.
Despite upbeat economic news in Europe, the U.K's FTSE 100 was down 0.4 per cent and Germany's DAX index was down 0.2 per cent. German factory orders in November topped expectations, Spanish bond yields retreated to 2009 lows, and retail sales in the euro zone took off.
Investors could be waiting for the big economic report of the day: The release of Fed minutes, due at 2 pm, should shed some light on how fast the central bank intends to unwind its bond-buying program, known as quantitative easing or QE. It has already signalled that tapering will start this month, but the rest of the year is still open to interpretation.
Investors also took in the ADP report on U.S. private sector employment for December – a big enough report on its own, but also a preview to the more important official payrolls report from the Labor Depart, due on Friday. The report showed that more jobs were created than economists had expected, which sparked a rise in U.S. Treasury yields and the U.S. dollar.
In earnings news, both Monsanto and Constellation Brands reported better-than-expected earnings. On Thursday, after markets close, Alcoa Inc. will kick off the official fourth quarter reporting season with its results.
Here's a closer look at what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 -0.13 per cent; Dow -0.12 per cent; Nasdaq -0.07 per cent; S&P toronto +0.03 per cent
Hong Kong's Hang Seng +1.25 per cent
Shanghai composite index -0.16 per cent
Japan's Nikkei +1.94 per cent
London's FTSE 100 -0.39 per cent
Germany's DAX -0.17 per cent
France's CAC 40 -0.09 per cent
Commodities:
WTI crude oil (Nymex Feb) +0.37 per cent at $94.02 (U.S.) a barrel
Gold (Comex Feb) -0.31 per cent at $1,225.80 (U.S.) an ounce
Copper (Comex Mar) +0.16 per cent at $3.37 (U.S.) a pound
Currencies:
Canadian dollar at 92.54 (U.S.), vs. 92.83 at Tuesday's North American close.
U.S. dollar index up 0.21 at 81.04
Bonds:
U.S. 10-year Treasury yield 2.98 per cent, up 0.04
ECONOMIC INDICATORS:
Payroll processor ADP said private-sector employment in the U.S. rose 238,000 in December, up from November's gain of 215,000 and surpassing Street estimates of 215,000.
(2 p.m. ET) Federal Reserve releases minutes from December interest-rate meeting.
STOCKS TO WATCH:
Constellation Brands reported third-quarter EPS of $1.07, beating the Street view of 91 cents. It also raised its full-year 2014 outlook. Shares are up 6 per cent in the premarket.
Monsanto reported adjusted first-quarter EPS of 67 cents versus the Street expectation of 64 cents. It also reaffirmed its fiscal 2014 earnings guidance.
Other earnings include: Jean Coutu Group; Bed Bath & Beyond; Exfo; Family Dollar Stores; Global Payments; Investors Bancorp.
ANALYST ACTIONS:
Canaccord Genuity hiked its price target on Valeant Pharmaceuticals International to $145 (U.S.) from $119 and reiterated a "buy" rating. Morgan Stanley upgraded the stock to "overweight" from "equalweight."
CIBC World Markets upgraded Lake Shore Gold to "sector performer" from "sector underperformer" and raised its price target to 65 cents (Canadian) from 45 cents.
CIBC World Markets downgraded Cervus Equipment to "sector performer" but hiked its price target to $25 (Canadian) from $24.
M Partners upgraded Partners REIT to "buy" from "hold" and maintained a $6 (Canadian) price target.
Cantor Fitzgerald downgraded Twitter to "sell" from "hold" and maintained a $32 (U.S.) price target.
Wells Fargo downgraded McDonald's to "market perform" from "outperform" with a $100 to $102 (U.S.) valuation range.
BMO Nesbitt Burns downgraded Eli Lilly to "underperform" from "market perform" and maintained a $50 (U.S.) price target.
Deutsche Bank upgraded Hershey to "buy" from "hold" and raised its price target to $108 (U.S.) from $90.
Deutsche Bank upgraded Kraft Foods Group to "buy" from "hold" and raised its price target to $59 (U.S.) from $54.
Deutsche Bank downgraded Dean Foods to "hold" from "buy" and cut its price target to $19 from $23.
RBC Dominion Securities downgraded Baker Hughes to "sector perform" from "outperform" and cut its price target to $60 (U.S.) from $67.
JPMorgan downgraded Clorox to "underweight" from "neutral" and maintained a $90 (U.S.) price target.
Deutsche Bank downgraded J.M. Smucker to "hold" from "buy" and cut its price target to $110 from $114.
RBC Dominion Securities downgraded National-Oilwell Varco to "sector perform" from "outperform" but maintained an $86 (U.S.) price target.
THIS MORNING'S TOP INVESTING LINKS:
Don't believe that the market's early-January direction foretells the whole year.
Wall Street's biggest banks say the slump in emerging-market assets that left equities trailing advanced-nation shares by the most since 1998 last year will prove more than a fleeting selloff.
Why REITs are a perfect portfolio diversifier.
Yield chasing never ends well - even in equities.
Are investors getting overly confident?
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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