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 and European indexes are seeing red this morning, but only modestly, as the fretting continues among investors on whether the market has gotten ahead of itself given still somewhat sluggish economic and corporate growth.
The Canadian dollar, meanwhile, plummeted as surprisingly weak jobs numbers were released at 830 a.m. (ET), suggesting the Bank of Canada could still lower interest rates further before any tightening of monetary policy. The Canadian dollar lost about half a cent on the news and is now at 91.79 cents (U.S.). Statistics Canada said a net 28,900 jobs were lost in April; economists were looking for 16,300 job gains. The biggest hit to jobs was in the accommodation and food sector, along with finance. Canada's jobs numbers have been notoriously volatile in recent months.
It was a mixed bad of trading overnight in Asia as Chinese released its latest inflation figures. Consumer price inflation rose to an annual rate of 1.8 per cent in April, below economists expectations for a 2 per cent gain, and well below March's 2.4 per cent rise. Other data showed producer prices falling for the 26th straight month, dropping to an annual rate of 2 per cent.
Those figures suggest China's central bank has room to ease monetary policy further to help boost the economy, and markets expect a possible cut in interest rates there if growth continues to disappoint in the second quarter.
In Europe, traders are trying to decide on their next move after a mixed first-quarter earnings season is throwing doubts on whether major indexes should really be trading at current multi-year highs. European Central Bank President Mario Draghi provided some encouragement Thursday in suggesting he will ease monetary policy next month if needed. The Ukraine situation continues to be a concern, and more clashes are expected today as the country celebrates Victory Day. Ukrainian pro-Russian secessionists plan to continue with a referendum this weekend, despite Russian President Vladimir Putin's request to call it off.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.12 per cent; Dow -0.10 per cent; Nasdaq -0.20 per cent; S&P Toronto -0.16 per cent
Hong Kong's Hang Seng +0.12 per cent
Shanghai composite index -0.21 per cent
Japan's Nikkei +0.26 per cent
London's FTSE 100 -0.30 per cent
Germany's DAX -0.24 per cent
France's CAC 40 -0.52 per cent
Commodities:
WTI crude oil (Nymex Jun) +0.42 per cent at $100.68 (U.S.) a barrel
Gold (Comex Jun) +0.26 per cent at $1,291.70 (U.S.) an ounce
Copper (Comex Jly) +0.39 per cent at $3.07 (U.S.) a pound
Currencies:
Canadian dollar at 91.87 cents (U.S.), down 0.0044
U.S. dollar index up 0.22 at 79.58
Bonds:
U.S. 10-year Treasury yield 2.60 per cent, down 0.02
ECONOMIC INDICATORS:
Canada lost 28,900 net jobs in April. Forecast was for 16,300 job gains. The Canadian unemployment rate in April was at 6.9 per cent, matching estimates. The Canadian participation rate for jobs fell to 66.1 per cent in April, the lowest level since 2001 and below the 66.3 per cent forecast by economists.
(10 a.m. ET) U.S. releases wholesale inventories for March. Consensus is for a rise of 0.5 per cent.
STOCKS TO WATCH:
TMX Group reported quarterly EPS of $1.05 versus the Street estimate of $1.02, but revenues missed.
Canadian Natural Resources beat Street estimates in releasing earnings Thursday night. It also raised its production guidance and hiked its dividend.
Other earnings today include: Armtec; Enerplus; High Liner Foods; IGM Financial; Trimac Transportation; Precision Castparts; Student Transportation; Telus; TransGlobe Energy.
Apple Inc. is close to buying headphone maker Beats Electronics for $3.2-billion (U.S.), the Financial Times reported.
A proposed $35-billion merger of U.S.-based Omnicom Group Inc and rival France's Publicis Groupe SA has been called off due to complex obstacles to molding the companies into the world's largest advertising agency.
Gap Inc reported a 9 per cent increase in comparable sales for April and the apparel company gave a profit forecast that surpassed Wall Street expectations. Shares are up nearly 9 per cent in premarket trading.
ANALYST ACTIONS:
Canaccord Genuity hiked its price target on Canadian Tire to $123 (Canadian) from $115 and maintained a "buy" rating. But Desjardins Securities cut its price target on Canadian Tire to $118 from $125 while keeping a "buy" rating. BMO raised its target to $124 from $110 and reiterated an "outperform" rating.
Raymond James upgraded Secure Energy Services to "strong buy" from "outperform" and hiked its price target to $24 (Canadian) from $18.
BMO Nesbitt Burns downgraded Lucara Diamonds to "market perform" on share price appreciation and kept a $2 (Canadian) price target.
BMO Nesbitt Burns hiked its price target on Whitecap Resources to $17 (Canadian) from $15.50 and kept an "outperform" rating, says the company's outlook remains strong.
BMO Nesbitt Burns hiked its price target on Calfrac Well Services to $44 (Canadian) from $39 and kept an "outperform" rating.
BMO Nesbitt Burns hiked its target on Trican Well Service to $18 (Canadian) from $14 and maintained a "market perform" rating.
Longbow Research upgraded Louisiana-Pacific to "buy" from "neutral" with a price target of $20 (U.S.).
ISI Group downgraded Apple to "buy" from "strong buy" with a price target of $675 (U.S.), up from $600.
THIS MORNING'S TOP INVESTING LINKS:
An innovative tax-friendly Canadian bond ETF begins trading this week.
Investors seem to be buying only because others are buying.
Why the iPad is still the future of Apple.
Here's a clear sign that we're in a tech bubble.
Yes, stocks and bonds can rise together.
Darcy Keith