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 are modestly weaker this morning, but that's masking a lot of volatility in premarket trading in several individual stocks as first-quarter earnings reports continue to spill out fast.
Just over 10 per cent of stocks that make up the S&P 500 are releasing earnings today, including giants such as Apple, Procter & Gamble, Facebook, and Boeing. We have highlights below in our Stocks to Watch section.
Prior to this morning, stocks representing 35 per cent of the S&P 500's market cap have reported first-quarter earnings. Excluding financial stocks, earnings have surpassed Street estimates by 3.2 per cent, but revenues have missed by 0.1 per cent, according to RBC. It's still fairly early in the season, but at the current pace, results to date suggest 4.1 per cent in earnings per share growth for the first quarter for S&P 500 stocks, excluding financials - though much of that is driven by share buybacks.
In overseas markets, Chinese stocks slipped as China's preliminary Purchasing Managers' index from HSBC and Markit Economics came in at 48.3 in April. That rose from March's final figure of 48 and matched economists' expectations, but still was below the 50 threshold that signifies expansion and contraction. The number suggests the country is still facing an economic slowdown, and that the government's 7.5 per cent growth target could be challenging to reach. Chinese Premier Li Keqiang said last week that China isn't considering strong stimulus and that economic growth could be slightly higher or lower than that target.
European stocks this morning are also slightly negative. There, Markit's flash Purchasing Managers' index for April came in at 54.0 for the euro zone. That was up from 53.1 in March and beat analysts' expectations.
The U.S. will release its latest manufacturing index shortly after markets open 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 -0.11 per cent; Dow -0.06 per cent; Nasdaq -0.15 per cent; S&P Toronto -0.07 per cent
Hong Kong's Hang Seng -0.97 per cent
Shanghai composite index -0.28 per cent
Japan's Nikkei +1.09 per cent
London's FTSE 100 -0.16 per cent
Germany's DAX -0.27 per cent
France's CAC 40 -0.38 per cent
Commodities:
WTI crude oil (Nymex Jun) -0.33 per cent at $101.41 (U.S.) a barrel
Gold (Comex Jun) +0.48 per cent at $1,287.10 (U.S.) an ounce
Copper (Comex Jly) -0.35 per cent at $3.02 (U.S.) a pound
Currencies:
Canadian dollar at 90.62 (U.S.), down 0.0006
U.S. dollar index down 0.18 at 79.71
Bonds:
U.S. 10-year Treasury yield 2.71 per cent, down 0.006
ECONOMIC INDICATORS:
Canada retail sales for February rose 0.5 per cent from January, matching Street estimates, after rising by a revised 0.9 per cent in January from December.
(945 a.m. ET) Markit Flash Manufacturing PMI released for the US for April.
(10 a.m. ET) U.S. releases new home sales for March, forecast to rise 2.3 per cent to an annualized rate of 450,000.
STOCKS TO WATCH:
Canadian Imperial Bank of Commerce is in the final running to purchase Russell Investments, a U.S. money manager that is up for sale with a price tag of as much as $3-billion (U.S.), Reuters and the Globe and Mail are reporting.
Allergan, the target of a hostile takeover offer from Valeant Pharmaceuticals International and Pershing Square Capital Management, has launched a shareholder rights plan as a roadblock against the bid. Allergan shares are up 0.8 per cent in the premarket and Valeant shares are up 0.7 per cent.
Celestica reported adjusted earnings, which excludes a one-time tax benefit, of 20 cents per share - in line with analysts' estimates.
Boeing reported first-quarter core EPS of $1.76 (U.S.) versus the Street estimate of $1.56. It also raised its guidance for this year. Shares are up nearly 2 per cent in the premarket.
Procter & Gamble reported adjusted earnings of $1.04, slightly beating the Street consensus of $1.02. But revenues of $20.56-billion was a bit below Street forecasts for $20.68-billion, and shares are down 0.5 per cent in the premarket.
Norfolk Southern reported Q1 EPS of $1.17 versus the $1.15 Street estimate. Shares are up 1.6 per cent in the premarket.
Delta Airlines reported first-quarter adjusted EPS of 33 cents versus expectations of 29 cents. Shares are up 5.5 per cent in the premarket.
Gilead Sciences shares are up nearly 4 per cent in the premarket after the drugmaker late Tuesday reported a sharp profit increase, helped by sales of its hepatitis C drug.
Gannett reported Q1 adjusted EPS of 47 cents vs Street forecasts for 46 cents.
Dow Chemical reported first-quarter EPS of 79 cents versus Street forecasts for 71 cents. Shares are up 1 per cent in the premarket.
AT&T late Tuesday raised its full-year revenue growth outlook, citing its acquisition of LEAP wireless in March and the popularity of a new handset pricing model that charges customers for devices separately from their wireless plans. Shares of the Dow component fell 2.2 per cent in premarket trading.
Other earnings today include: CGI Group; Choice Properties REIT; Danier Leather; Exco Technologies; Apple; Bancorp; Cheesecake Factory; Crocs; Dr Pepper Snapple; E*Trade; Equifax; Facebook; General Dynamics; Jarden; Johnson Controls; Kaiser Aluminum; Motorola Solutions; Noranda Aluminum; Northrop Grumman; Omnicare; Owens Corning; Raymond James; Safeway; Six Flags Entertainment; Supervalu; TD Ameritrade; Zynga.
Mega Brands shareholders today vote on a takeover offer from Mattel.
Canadian National Railway holds its annual general meeting today.
ANALYST ACTIONS:
RBC Dominion Securities upgraded Agnico-Eagle Mines to "outperform" from "sector perform" with a price target of $43.
TD Securities upgraded Valeant Pharmaceuticals to "buy" from "hold" and raised its price target to $160 (U.S.) from $145.
MKM Partners downgraded Eli Lilly to "neutral" from "buy" and maintained a $61 (U.S.) price target.
Wells Fargo upgraded E*Trade to "outperform" from "market perform" and raised its valuation range to $25-28 from $21-24.
Macquarie upgraded AK Steel to "outperform" from "neutral" with a price target of $11 (U.S.).
Societe Generale upgraded Cabot Oil & Gas to "buy" from "hold" with a price target of $43 (U.S.).
BMO Nesbitt Burns raised its price target on Harley-Davidson to $80 (U.S.) from $72 and maintained an "outperform" rating.
THIS MORNING'S TOP INVESTING LINKS:
ETF fees in Canada just keep getting lower.
Actively managed ETFs aren't growing as fast as some would suspect.
The appetite for iPads is on the wane.
U.S. large caps are cheaper than small- and mid-cap stocks.
The long end of the yield curve is flattening.
Energy stocks are still breaking out on the charts.
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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