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. and Canadian stock futures are pointing to a modestly higher start for markets this morning, as traders take in numerous readings on the state of the manufacturing sector from across the globe.
Stock futures are up between 0.2 per cent and 0.3 per cent after the S&P 500 gained nearly 0.8 per cent on Monday and the S&P/TSX composite index rose almost 0.6 per cent. Traders on Monday were comforted by remarks from Fed chair Janet Yellen, who said the central bank will keep its "extraordinary" support for the economy for "some time to come" and expressed concerns about a still sluggish job market.
Those comments also helped to support overseas markets today, which are mostly higher. In China, the Shanghai index managed to rise 0.6 per cent despite more sluggish readings on factory output. The official purchasing managers index there rose to 50.3 in March from 50.2 in February, which was in line with expectations. A separate reading from HSBC came in at 48, a touch below last week's preliminary reading of 48.1. The numbers at least indicated that the economy wasn't rapidly slowing down, as speculation continues to swirl that Beijing may soon unleash fiscal spending to help keep the economy buzzing.
There were plenty of economic reports in Europe today, and markets overall are taking them in stride. The euro area unemployment rate remained at 11.9 per cent, nearly unchanged from a year ago when the figure was 12 per cent. The euro zone manufacturing purchasing managers' index came in at 53.0 in March, down from 53.2 in February, but above the 50 level that separates contraction from expansion. Elsewhere, a U.K. manufacturing index edged down from February and German unemployment fell for the fourth straight month in March. The European Central bank meets this Thursday and there's plenty of speculation it could announce further stimulus measures to combat weakening consumer prices.
The U.S. will be releasing its own set of manufacturing numbers later this morning, along with construction spending data. The big automakers are also releasing March sales and investors and economists will be watching whether there's a pickup from the sluggish sales from earlier in the year when extreme winter weather kept consumers away from dealers.
Now, here are more details on what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 +0.26 per cent; Dow +0.29 per cent; Nasdaq +0.27 per cent; S&P Toronto +0.23 per cent
Hong Kong's Hang Seng +1.35 per cent
Shanghai composite index +0.67 per cent
Japan's Nikkei -0.24 per cent
London's FTSE 100 +0.57 per cent
Germany's DAX +0.66 per cent
France's CAC 40 +0.90 per cent
Commodities:
WTI crude oil (Nymex May) -0.32 per cent at $101.25 (U.S.) a barrel
Gold (Comex Jun) +0.12 per cent at $1,285.30 (U.S.) an ounce
Copper (Comex May) -0.02 per cent at $3.03 (U.S.) a pound
Currencies:
Canadian dollar at 90.42 (U.S.), down 0.0007
U.S. dollar index down 0.03 at 80.06
Bonds:
U.S. 10-year Treasury yield 2.75 per cent, up 0.03
ECONOMIC INDICATORS:
Statistics Canada said industrial product prices in February were up 1 per cent from January, ahead of the Street estimate calling for a 0.8 per cent rise. Canada raw materials prices rose 5.7 per cent from January.
(945 a.m. ET) Markit will issue its final U.S. manufacturing reading for March. The flash, or preliminary, March index fell to 55.5 from 57.1.
(10 a.m. ET) Institute for Supply Management releases its U.S. manufacturing index for March. It's forecast to come in at 54.0.
(10 a.m. ET) U.S. Commerce Department releases construction spending for February. Economists expect a rise of 0.1 per cent.
STOCKS TO WATCH:
Automakers release vehicle sales for March.
Surge Energy is offering to buy Longview Oil in a friendly deal that the companies value at $429-million, including assumed debt.
ANALYST ACTIONS:
Cantor Fitzgerald Canada downgraded Potash Corp. to "hold" from "buy", citing the stock's 19 per cent surge since Jan 30. It kept a $35 (U.S.) price target.
Canaccord Genuity upgraded Husky Energy to "buy" from "hold" and hiked its price target to $38.50 (Canadian) from $35.
Canaccord Genuity hiked its price target on Martinrea International to $13 (Canadian) from $10.25 and maintained a "buy" rating.
UBS upgraded Laboratory Corporation of America to "buy" from "neutral" and raised its price target to $112 (U.S.) from $93.
Deutsche Bank downgraded Oasis Petroleum to "hold" from "buy" and cut its price target to $46 (U.S.) from $50.
THIS MORNING'S TOP INVESTING LINKS:
Sheryl Sandberg, Facebook's No. 2 executive, has slashed more than half her stake in the social networking company since its initial public offering less than two year ago.
Ahead of first-quarter earnings season, Corporate America's outlook is holding around its most pessimistic levels ever.
Why interest rates, to the surprise of many, have been trending down this year.
Reversion to the mean still exists.
This is what an IPO bubble really looks like.
When it comes to U.S. REITs, apartment real estate investment trusts have been on fire.
The chip in the iPhone 5s is way more powerful than it needs to be - and that's bad news for Intel.
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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