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 immediately turned higher after the U.S. reported a blowout jobs number, with 288,000 net new jobs created in April versus expectations of 210,000 and the unemployment rate surprisingly plunging to 6.3 per cent.
But the enthusiasm in equity markets is quickly abating as the market open approaches. Stock futures are now flat - back to where they were prior to the 830 a.m. (ET) data, after S&P 500 futures initially spiked by more than 0.3 per cent.
Gold turned south in a hurry on the jobs report, falling by more than 0.3 per cent, but have since recovered, and are trading up 0.1 per cent. The yield on the 10-year Treasury spiked is now at 2.66 per cent versus 2.63 per cent prior to the 830 a.m. (ET) jobs data.
It was the strongest U.S. jobs number since January 2012 and the second best showing for the labour market since the country emerged from the recession.
The number likely cements the Fed's commitment to continuing to taper its monthly bond purchases by $10-billion a month until the quantitative easing program has concluded. It also raises speculation that the Fed could move even earlier than mid-2015 on hiking interest rates - although few see any risks of it moving on that front any time soon.
Chinese markets were closed for another holiday today, making for an especially quiet session in Asia overnight. In Europe, the tense standoff between Ukraine and Russia remains a key concern. Ukraine today launched what appeared to be its first major assault against pro-Russian forces who have seized government buildings in the country's east, with fighting breaking out around a city that has become the focus of the insurgency. Three deaths were reported in early fighting.
Today also brings a handful of first-quarter earnings reports. About 75 per cent of S&P 500 companies that have reported earnings so far have beaten profit expectations by analysts, with about 53 per cent topping sales projections. Late Thursday, Agnico Eagle reported a massive earnings beat and suggested it will surpass guidance for this year, and its U.S. shares this morning are surging nearly 6 per cent in very thin trading.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.05 per cent; Dow -0.06 per cent; Nasdaq +0.13 per cent; S&P Toronto +0.29 per cent
Hong Kong's Hang Seng Closed for holiday
Shanghai composite index Closed for holiday
Japan's Nikkei -0.19 per cent
London's FTSE 100 +0.16 per cent
Germany's DAX -0.02 per cent
France's CAC 40 -0.43 per cent
Commodities:
WTI crude oil (Nymex Jun) +0.39 per cent at $99.82 (U.S.) a barrel
Gold (Comex Jun) +0.08 per cent at $1,284.40 (U.S.) an ounce
Copper (Comex Jly) +0.56 per cent at $3.04 (U.S.) a pound
Currencies:
Canadian dollar at 91.03 (U.S.), down 0.0019
U.S. dollar index up 0.06 at 79.59
Bonds:
U.S. 10-year Treasury yield 2.66 per cent, up 0.04
ECONOMIC INDICATORS:
U.S. nonfarm payrolls for April rose by 288,000 net new jobs, far surpassing expectations for 210,000. The unemployment rate rate to 6.3 per cent, much lower than the forecasted 6.6 per cent.
(10 a.m. ET) U.S. releases factory orders for March. Consensus is for a rise of 1.5 per cent.
STOCKS TO WATCH:
Torstar has agreed to sell Harlequinn to News Corp. for $455-million.
SNC-Lavalin Group late Thursday said it is selling AltaLink, its Alberta electricity transmission company, to Warren Buffett's Bershire Hathaway Energy, for $3.2-billion.
Pfizer shares are up 0.5 per cent in premarket trading after AstraZeneca rejected a takeover bid from the U.S. pharma company.
Agnico Eagle Mines late Thursday reported Q1 adjusted EPS of 61 cents (U.S.), easily surpassing the Street consensus of 23 cents. Its U.S. shares are up 5.6 per cent in the premarket.
TransCanada reported quarterly EPS of 60 cents, beating Street expectations by a penny. Revenues also surpassed Street views.
Chevron reported Q1 EPS of $2.36 (U.S.), below Street expectations of $2.52. Shares are down 1 per cent in the premarket.
LinkedIn late Thursday reported a quarterly profit of 38 cents a share, beating the Street consensus of 34 cents. But shares are down about 1 per cent in premarket trading.
Other earnings today include: Clearwater Seafoods; Gildan Activewear; Gluskin Sheff; Norbord.
ANALYST ACTIONS:
Raymond James upgraded Mercer International to "outperform" from "market perform" and raised its price target to $10.50 (U.S.) from $9.50.
Several analysts cut their price targets on LinkedIn in the wake of the company's quarterly results late Thursday, including BMO cutting its target to $250 (U.S.) from $270, RBC cutting to $230 from $250, and Cowen cutting to $175 from $220.
Goldman Sachs upgraded General Dynamics to "neutral" from "sell" and raised its price target to $112 (U.S.) from $102.
ISI Group upgraded Dynegy to "strong buy" from "buy" and raised its price target to $40 (U.S.) from $30.
Sterne Agee upgraded Wynn Resorts to "buy" from "neutral" and raised its target to $260 (U.S.) from $225.
Bernstein downgraded Cabot Oil & Gas to "market perform" from "outperform" and maintained a $40 (U.S.) price target.
THIS MORNING'S TOP INVESTING LINKS:
How Canada's flirtation with a China oil market soured.
The five cheapest, yet profitable, U.S. oil and gas stocks.
Investors using high-dividend strategies are probably better off holding them in sheltered accounts.
Why U.S. business capital spending isn't set to take off.
Valuing growth stocks is hard.
More evidence of a low-return equity outlook.
The strange death of volatility.
Darcy Keith