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 modestly higher this morning amid a very busy day of economic data and a handful of key U.S. corporate earnings. S&P 500 futures are up 0.2 per cent after trading near flat earlier today.
In commodities this morning, gold is down 2.6 per cent, pulled lower by strength in the U.S. dollar, profit-taking, and the break of some key support levels that triggered automatic sell orders.
The strength of the Chinese economy is also a big focus today, and nervousness is apparent in equity markets in that part of the world, with the Shanghai index losing 1.3 per cent overnight and Hong Kong 1.6 per cent. The country released data today showing money supply growing at its weakest pace in more than a decade, and outstanding yuan loans rose 13.9 per cent from a year earlier. On Wednesday - or overnight in North American hours - China will release several key reports, including first-quarter GDP, March retail sales, industrial output and fixed asset investment.
Recent readings on the Chinese economy have clearly indicated a slowing its its growth rate, although concerns about how much that will impact demand for hard assets such as copper have been eased somewhat by speculation it will unleash new monetary or fiscal stimulus measures.
Market players are also keeping a close eye on the situation in eastern Ukraine, where tensions remain high after pro-Russian protesters seized government offices and police stations.
Coca-Cola is among nine companies in the S&P 500 index today releasing earnings. Prior to today, 31 companies representing 8.1 per cent of S&P 500's market-cap have reported results for the previous quarter, the majority of which have February year-end. Earnings are beating expectations by 2.2 per cent, while revenues have come in 0.1 per cent shy of forecasts, according to Royal Bank of Canada.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.21 per cent; Dow +0.16 per cent; Nasdaq +0.30 per cent; S&P Toronto +0.04 per cent
Hong Kong's Hang Seng -1.60 per cent
Shanghai composite index -1.39 per cent
Japan's Nikkei +0.62 per cent
London's FTSE 100 -0.12 per cent
Germany's DAX -0.43 per cent
France's CAC 40 -0.01 per cent
Commodities:
WTI crude oil (Nymex Jun) -0.83 per cent at $102.35 (U.S.) a barrel
Gold (Comex Jun) -2.66 per cent at $1,292.40 (U.S.) an ounce
Copper (Comex Jun) -0.38 per cent at $3.03 (U.S.) a pound
Currencies:
Canadian dollar at 91.00 (U.S.), down 0.0018
U.S. dollar index up 0.13 at 79.85
Bonds:
U.S. 10-year Treasury yield 2.65 per cent, up 0.002
ECONOMIC INDICATORS:
Canada manufacturing sales for February rose 1.4 per cent from January, more than the 1.0 per cent predicted. January sales were revised lower, to 0.8 per cent from 1.5 per cent.
U.S. consumer price index rose 0.2 per cent in March from February, higher than the 0.1 per cent that was expected.
Empire State Manufacturing Survey came in at 1.29, well below forecasts for 8.0 and below March's 5.6.
(845 a.m. ET) Fed Chair Janet Yellen speaks at the Atlanta Fed Conference.
(9 a.m. ET) Canada releases existing home sales for March, forecast by BMO to rise 3.0 per cent from a year ago, with average prices up 7.5 per cent. The MLS home price index is also due out, forecast to rise 5.4 per cent.
(10 a.m. ET) National Association of Homebuilders housing market index, expected to come in at 50 from 47 in March.
STOCKS TO WATCH:
Shaw Communications plans to lay off some 400 employees, or almost three per cent of its workforce, in a move to consolidate operations.
Coca-Cola reported adjusted first-quarter EPS of 44 cents, matching the Street estimate. Shares are up 1.2 per cent in the premarket.
Johnson & Johnson reported adjusted first-quarter EPS of $1.54 versus Street expectations of $1.48. Shares are up 1.6 per cent in the premarket.
Other earnings today include: CSX, Intel, Interactive Brokers, Linear Tech, Northern Trust, Yahoo.
ANALYST ACTIONS:
Raymond James upgraded Mandalay Resources to "strong buy" from "outperform" and hiked its price target to $1.40 (Canadian) from $1.20.
Raymond James hiked its target on Teck Resources to $27 (Canadian) from $24 and maintained a "market perform" rating.
Raymond James hikes target on Paramount Resources to $69 (Canadian) from $61 and maintained a "strong buy" rating.
Desjardins Securities raised its price target on Sears Canada to $15 (Canadian) from $10 and maintained a "hold" rating.
Bernstein upgraded Citibank to "outperform" from "market perform" and raised its price target to $57 (U.S.) from $52.
Merrill Lynch upgraded Morgan Stanley to "buy" from "neutral" with a price target of $35 (U.S.).
Macquarie upgraded Yahoo to "outperform" from "neutral" and raised its price target to $40 (U.S.) from $37.50.
Janney Montgomery Scott upgraded Visa to "buy" from "neutral" with a price target of $240 (U.S.).
Janney Montgomery Scott upgraded Mastercard to "buy" from "neutral" with a price target of $81 (U.S.).
Wunderlich Securities upgraded Basic Energy Services to "hold" from "sell" and raised its price target to $27 (U.S.) from $19.
Wunderlich Securities upgraded Key Energy Services to "hold" from "sell" and raised its price target to $9 (U.S.) from $6.
Oppenheimer upgraded Catamaran to "outperform" from "perform" with a price target of $50 (U.S.).
Goldman Sachs upgraded Estee Lauder to "conviction buy" from "buy" with a price target of $83 (U.S.).
Maxim Group upgraded Pandora to "buy" from "hold" with a price target of $35 (U.S.).
THIS MORNING'S TOP INVESTING LINKS:
History suggests value outperformance has room to run.
Hedge funds are behind the brutal Nasdaq selloff.
Don't bet on a rally in U.S. treasuries to continue.
Top overused excuses for market downturns.
2014 has been the inverse of 2013 for investing.
Don't be overly eager to get short the high flyers.
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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