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. stock futures are pointing higher this morning as earnings reports are being revealed fast and furiously and as market players absorb a batch of economic reports on the American economy. The TSX may struggle relative to the U.S. market this morning, as gold prices are under pressure.
Shareholders of Facebook are having an especially good morning, with the stock soaring almost 20 per cent in the premarket after reporting earnings late Wednesday, setting up for a record high at the open.
Overseas markets are mixed, with Asian indexes ending in the red but European stocks reversing from earlier losses. Japan's Nikkei fell 2.45 per cent overnight as the yen saw gains against the U.S. currency. Chinese stocks were pressured by further confirmation that the country's manufacturing sector was slowing; a reading of China's Purchasing Managers' Index fell to 49.5 from 50.5 in December. That was just a touch below forecasts and well below the 50 level that signifies contraction.
The data out of China suggesting a slowdown in the country's growth rate is continuing to put pressure on industrial metals, of which the country is a large consumer. Aluminum was down almost 1 per cent this morning to its lowest level since July 2009.
U.S. initial jobless claims and a reading on fourth-quarter gross domestic product weren't far from expectations, and had a muted impact on markets this morning.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.65 per cent; Dow +0.59 per cent; Nasdaq +0.81 per cent; S&P Toronto -0.05 per cent
Hong Kong's Hang Seng -0.48 per cent
Shanghai composite index -0.83 per cent
Japan's Nikkei -2.45 per cent
London's FTSE 100 +0.13 per cent
Germany's DAX +0.57 per cent
France's CAC 40 +0.65 per cent
Commodities:
WTI crude oil (Nymex Mar) -0.39 per cent at $97.74 (U.S.) a barrel
Gold (Comex Apr) -1.70 per cent at $1,240.80 (U.S.) an ounce
Copper (Comex Mar) -0.22 per cent at $3.23 (U.S.) a pound
Currencies:
Canadian dollar at 89.39 (U.S.), vs. 89.46 at Wednesday's North American close.
U.S. dollar index up 0.35 at 80.86
Bonds:
U.S. 10-year Treasury yield 2.71 per cent, up 0.02
ECONOMIC INDICATORS:
U.S. initial jobless claims last week rose to 348,000 from the previous week's 326,000. That was above forecasts of 330,000.
U.S. gross domestic product grew at an annualized pace of 3.2 per cent in the fourth quarter, which matched Street forecasts but was down from 4.1 per cent in the third quarter.
(10 a.m. ET) National Association of Realtors releases pending home sales index for December.
STOCKS TO WATCH:
Facebook late Wednesday reported adjusted fourth-quarter EPS of 31 cents, beating Street expectations of 27 cents. Shares are soaring 18 per cent in the premarket this morning and are set to open at a record high.
Google late Wednesday said it was on the verge of selling its Motorola handset unit to Lenovo Group for about $3-billion (U.S.). Shares are up 2.7 per cent.
ConocoPhillips reported adjusted fourth-quarter earnings per share of $1.40 (U.S.), beating the Street consensus of $1.32.
Potash Corp. of Saskatchewan reported quarterly EPS of 31 cents versus the Street forecast of 33 cents. U.S. shares are down 4 per cent in the premarket.
U.S. homebuiilder PulteGroup reported fourth-quarter EPS of 57 cents (U.S.) versus Street expectations of 45 cents. Shares are up 5 per cent in the premarket.
Colgate-Palmolive reported fourth-quarter adjusted EPS of 75 cents versus Street forecasts of 74 cents.
Northrop Grumman reported fourth-quarter adjusted EPS of $2.12 versus expectations of $1.94.
3M reported fourth-quarter EPS of $1.62, matching the Street consensus. Shares are up 0.5 per cent.
UPS reported fourth-quarter adjusted EPS of $1.25 (U.S.), matching Street expectations.
Exxon Mobil reported adjusted fourth-quarter EPS of $1.91, matching the Street consensus.
Other earnings include: Canadian National Railway; Canadian Oil Sands; Tembec; Rogers Sugar; Wi-Lan; Celestica; Celgene; Norbord; Imperial Oil; Potash Corp. of Saskatchewan; H&M; LVMH; Ericsson; Viacom; Altria Group; Harley-Davidson; Google; Amazon; Visa; Chipotle Mexican Grill.
ANALYST ACTIONS:
Canaccord Genuity downgraded AGF Management to "sell" from "hold" and cut its price target to $10.50 (Canadian) from $12.25.
Canaccord Genuity boosted its price target on Canadian Pacific Railway to $183 (Canadian) from $165 and maintained a "hold" rating. Cowen and Co. upgraded its rating to "outperform" from "market perform" and raised its price target to $174 from $152.
Industrial Alliance Securities raised its price target on AlarmForce Industries to $14 (Canadian) from $12.75 and maintained a "strong buy" rating.
RBC Dominion Securities raised its price target on Facebook to $76 (U.S.) from $60 and maintained an "outperform" rating. Cowen and Co. raised its target to $80 from $68 and maintained an "outperform" rating. Evercore Partners raised its price target to $70 from $65 and reiterated an "overweight" recommendation. Janney Capital raised its target to $67 from $56 and reiterated a "buy" rating. Jefferies raised its target to $80 from $60 and maintained a "buy" rating. Susquehanna raised its target to $72 from $68 and maintained a "positive" rating. Raymond James raised its price target to $71 from $63 and maintained an "outperform" rating.
Citigroup downgraded Citrix Systems to "neutral" from "buy" and cut its price target to $58 (U.S.) from $70. JMP Securities downgraded its rating to "market underperform" from "market perform" with a price target of $45. Baird downgraded its rating to "neutral" from "outperform" and cut its price target to $64 from $75.
Atlantic Equities upgraded Union Pacific to "overweight" from "neutral" and raised its price target to $195 (U.S.) from $170.
THIS MORNING'S TOP INVESTING LINKS:
Why Google's sale of Motorola is a game changer.
Can the U.S. economy withstand the emerging-markets mess?
10 stocks that are better picks for your portfolio than Apple.
What is Apple going to do with all that cash?
What happens when an actively managed ETF gets too popular.
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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