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 largely directionless this morning, with overseas markets mostly just mildly in the red, as traders turn cautious after record-breaking highs this week in the S&P 500 and Dow Jones industrial average.
The TSX is only about 85 points away from a six-year high, and this morning may narrow that gap given a firm tone in gold and copper prices. But lingering worries about growth in China and the tense standoff in Ukraine is likely to keep a lid on a more forceful rally. Sears Canada shares are likely to rise after its parent company said it may sell its stake in the retailer.
Chinese stocks fell 0.1 per cent overnight, despite a rally in property stocks on news that the country's central bank urged banks to accelerate approvals for home loans and cut interest rates. Hong Kong's Hang Seng index rose 1 per cent to a three-week high.
In Europe, the focus was on the Bank of England, with its central bank saying it was in no rush to hike interest rates as it provided a quarterly upgrade to its economic forecasts. The central bank lowered its forecast for unemployment for the next couple of years, but left largely unchanged its growth and inflation forecasts. The FTSE 100 this morning is down about 0.1 per cent.
Bonds continue to hold their own, despite the inevitable rise in interest rates that will arrive at some point. The yield on the 10-year treasury is at 2.58 per cent this morning after falling back Tuesday on the release of weaker-than-expected retail sales in the U.S.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Equities:
Futures: S&P 500 -0.21 per cent; Dow -0.10 per cent; Nasdaq -0.22 per cent; S&P Toronto +0.02 per cent
Hong Kong's Hang Seng +1.03 per cent
Shanghai composite index -0.13 per cent
Japan's Nikkei -0.13 per cent
London's FTSE 100 -0.13 per cent
Germany's DAX -0.19 per cent
France's CAC 40 -0.18 per cent
Commodities:
WTI crude oil (Nymex Jly) +0.31 per cent at $101.36 (U.S.) a barrel
Gold (Comex Jun) +0.76 per cent at $1,304.50 (U.S.) an ounce
Copper (Comex Jly) +0.75 per cent at $3.16 (U.S.) a pound
Currencies:
Canadian dollar at 91.72 cents (U.S.), up 0.0004
U.S. dollar index down 0.05 at 80.08
Bonds:
U.S. 10-year Treasury yield 2.58 per cent, down 0.04
ECONOMIC INDICATORS:
U.S. producer price index rose 0.6 per cent in April from March, above expectation for a rise of 0.6 per cent.
STOCKS TO WATCH:
Sears Holdings Corp. said on Wednesday it is "exploring strategic alternatives for its 51 per cent interest in Sears Canada, including a potential sale of Sears Holdings's interest or Sears Canada as a whole." Shares in Sears Holdings are up 3.7 per cent in the premarket.
Yahoo acquired Blink, a mobile messaging startup, for undisclosed terms.
Deere & Co. reported Q2 EPS of $2.65 (U.S.) versus the Street consensus of $2.49.
Macy's reported Q1 EPS of 60 cents, matching the Street view, and boosted its dividend by 25 per cent.
Other earnings today include: Ag Growth International, B2Gold, DragonWave, Power Financial, Sprott, Whistler Blackcomb, Abercrombie & Fitch, Cisco Systems, Macy's, RE/MAX, SodaStream International, Valero Energy Partners.
ANALYST ACTIONS:
TD Securities downgraded Twin Butte Energy to "hold" from "buy" and cut its price target to $2.50 (Canadian) from $3.25, after the company issued negative production guidance revisions.
Raymond James upgraded McCoy to "outperform" from "market perform" and hiked its price target to $7.25 (Canadian) from $6.50.
Desjardins Securities downgraded WSP Global to "hold" from "buy" and maintained a $39 (Canadian) price target.
RBC Dominion Securities raised its price target on Northland Power to $19 (Canadian) from $17 and maintained a "sector perform" rating.
Deutsche Bank upgraded Lear to "buy" from "hold" and raised its price target to $100 (U.S.) from $95.
Raymond James upgraded Pandora to "outperform" from "market perform" with a price target of $31 (U.S.).
Cowen downgraded Walgreen to "market perform" from "outperform" and maintained a $74 (U.S.) price target.
Canaccord Genuity upgraded Autodesk to "buy" and hiked its price target to $60 (U.S.) from $52.
RBC Dominion Securities upgraded The Rubicon Project to "outperform" from "sector perform" but cut its price target to $19 (U.S.) from $22.
SunTrust Robinson Humphrey upgraded Royal Caribbean Cruises to "buy" from "neutral" with a price target of $63 (U.S.).
THIS MORNING'S TOP INVESTING LINKS:
The Chinese stock market is suffering, surprising banking giants such as Goldman and Citigroup.
Vanguard has just announced more ETFs for Canadians.
The 10 U.S. companies with the best corporate cultures - and why investors should care.
The chance that you possess the marginal information to catch a stock at an inflection point is essentially zero.
How Obamacare has been affecting health-care stocks.
Why millennials are hurting the U.S. real estate recovery.
How to improve investing based on momentum.
Darcy Keith