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 stock futures have turned positive just ahead of the opening bell, as stronger-than-expected manufacturing data was released out of the U.S. in a very busy day for economic and corporate news.
The Market flash purchasing managers index for the U.S. rose to 56.7 in February, the highest level since May 2010 and far surpassing economists' forecasts.
The backdrop provided overnight wasn't particularly encouraging, however. China released more disappointing economic data, with the HSBC China flash purchasing managers' index for February falling to 48.3 - a seven-month low - from a final reading of 49.5 in January. A reading below 50 signifies contraction, so the reading provided a further hint that the world's second-biggest economy may be struggling to maintain its economic growth momentum.
Shanghai stocks were only down 0.17 per cent, but losses in Japan were much steeper, falling by 2.15 per cent, as the yen strengthened against the U.S. dollar. Japan reported a record monthly trade deficit in January of 2.79 trillion yen. Economists had expected a 2.5 trillion shortfall.
Several European nations also released purchasing managers indexes this morning, with Germany being one bright spot, with its component figure - measuring both manufacturing and service sectors - rising to 56.1 from 55.5 the previous month.
The U.S. also released weekly jobless claims and inflation data this morning - both of which came in close to expectations.
More below on the key corporate and economic developments this morning - including Wal-Mart warning that its earnings this quarter will likely fail to meet analysts' estimates, and a speculative rally in BlackBerry shares after Facebook's highly priced purchase of WhatsApp.
MARKETS:
Equities:
Futures: S&P 500 +0.16 per cent; Dow +0.07 per cent; Nasdaq +0.02; S&P Toronto -0.12 per cent
Hong Kong's Hang Seng -1.19 per cent
Shanghai composite index -0.17 per cent
Japan's Nikkei -2.15 per cent
London's FTSE 100 -0.28 per cent
Germany's DAX -1.17 per cent
France's CAC 40 -0.37 per cent
Commodities:
WTI crude oil (Nymex Apr) -0.19 per cent at $102.64 (U.S.) a barrel
Gold (Comex Apr) -0.55 per cent at $1,313.10 (U.S.) an ounce
Copper (Comex Mar) -0.62 per cent at $3.27 (U.S.) a pound
Currencies:
Canadian dollar at 90.35 (U.S.), vs. 90.24 at Wednesday's North American close.
U.S. dollar index up 0.15 at 80.30
Bonds:
U.S. 10-year Treasury yield 2.75 per cent, up 0.007
ECONOMIC INDICATORS:
U.S. consumer price index for January rose 0.1 per cent after December's boost of 0.3 per cent, matching the Street estimate. Excluding food and energy costs, prices rose 0.1 per cent, also close to expectations.
U.S. new jobless claims last week were 336,000, down from the previous week's 339,000 and very close to market expectations.
The U.S. PMI manufacturing index for February came in a 56.7, above the Street estimate of 53.5 and January's reading of 53.7.
(10 a.m. ET) U.S. releases the Philadelphia Fed Survey for February, with the general business conditions index forecast to decline to 8.0 from 9.4 in January.
STOCKS TO WATCH:
Facebook late Wednesday said it will pay almost $20-billion (U.S.) to acquire WhatsApp, one of the most popular mobile messaging companies in the world. The deal immediately sparked outcry from some observers that Facebook overpaid, and its shares are down 3.6 per cent in the premarket.
BlackBerry shares are up nearly 5 per cent in the premarket, as investors speculate the massive price-tag paid for WhatsApp may mean BlackBerry's messenger business could be worth more than the market is currently valuing.
Tim Hortons reported fourth-quarter adjusted EPS of 69 cents versus the Street estimate of 76 cents. It boosted its dividend by 23 per cent to 32 cents a share and announced it may buy back up to $440-million of its shares.
Loblaw Companies reported adjusted fourth-quarter EPS of 65 cents, beating the Street estimate of 55 cents. Revenue was up 2.3 per cent to $7.64-billion, also better than expected.
TransAlta cut its dividend to 18 cents a share from 29 cents as it reported flat fourth-quarter earnings.
TransCanada reported adjusted fourth-quarter EPS of 58 cents versus the Street estimate of 59 cents. Revenues missed the consensus call.
Wal-Mart Stores reported fourth-quarter adjusted EPS of $1.60 (U.S.), near Street expectations, but said it expects first-quarter EPS of $1.10-1.20, below the average analyst estimate of $1.24.
Tesla Motors shares are up 12 per cent in the premarket after late Wednesday reported adjusted quarterly profit of 33 cents a share, above the average analyst estimate of 23 cents.
Other earnings today include: Agrium; Alamos Gold; TransCanada; Canadian Utilities; Capstone Mining; Chorus Aviation; First Quantum Minerals; Groupon; Hewlett-Packard; Hormel Foods; Imax; Intuit; Lundin Mining; Newalta; Newmont Mining; Nordstrom; North American Palladium; Pan American Silver; Silver Standard Resources; Teranga Gold; Thompson Creek Metals Company; Western Forest Products.
Safeway shares are up nearly 5 per cent in the premarket after saying late Wednesday that it is holding talks on the possible sale of the company.
Finland's Nokia is considering buying U.S.-based network gear maker Juniper Networks to merge it with its unit Nokia Solutions and Networks, according to a Germany online publication, citing unnamed sources. Juniper shares are up 2.3 per cent in the premarket.
ANALYST ACTIONS:
RBC Dominion Securities upgraded Barrick Gold to "outperform" from "sector perform" and raised its price target to $28 (U.S.) from $24.
Canaccord Genuity upgraded Quebecor to "buy" from "hold" and maintained a $27 (Canadian) price target.
Canaccord Genuity hiked its target on Goldcorp to $35 (Canadian) from $31.50 and maintained a "buy" rating.
Desjardins Securities hiked its price target on Boralex to $15 (Canadian) from $12 after the power generation company introduced its first dividend on Wednesday. It maintained a "buy" rating. BMO Nesbitt Burns raised its price target on Boralex to $14 from $12.50 and maintained a "market perform" rating.
Canaccord Genuity hiked its price target on Cargojet to $19.75 (Canadian) from $12.75 after the Canada Post contract win. It maintained a "buy" rating.
BMO Nesbitt Burns downgraded Killam Properties to "market perform" from "outperform," commenting that near-term growth prospects are less clear. It cut its price target to $11.75 (Canadian).
Evercore Partners downgraded Facebook to "equalweight" from "overweight" and cut its price target to $60 (U.S.) from $70, commenting that the cost of delivering increased engagement is higher than it's comfortable with.
Jefferies raised its price target on Tesla Motors to $220 (U.S.) from $190 and maintained a "buy" rating. Dougherty & Co. raised its target to $325 (U.S.) from $200 and maintained a "buy" rating.
Macquarie downgraded Goodrich Petroleum to "underperform" from "neutral" and cut its price target to $13 (U.S.) from $18.
Roth Capital downgraded Hecla Mining to "neutral" from "buy" and cut its price target to $3.50 (U.S.) from $3.75.
THIS MORNING'S TOP INVESTING LINKS:
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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