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 a tad lower amid a busy morning of economic data and a full day of speculation over what policy decisions lie ahead for the central banks of Europe and the United States.
A private sector survey of U.S. employment came in weaker than expected today, as did U.S. trade data, keeping stock futures in the red and worries alive about the sluggish state of the U.S. economic recovery.
But the main focus remains on Thursday, when the European Central Bank is widely expected to take its interest rates into negative territory for the first time ever, as well as possibly announce other stimulus measures, such as a quantitative easing-type program, to ignite more rigorous economic growth. On Friday, the key U.S. nonfarm payrolls report will be released.
In overseas data today, the final reading of the composite Purchasing Managers' Index for the euro zone, which measures both the manufacturing and services sector, fell in May to 53.5 from April's near-three-year high of 54.0. This followed data on Tuesday showing euro zone inflation hitting a four-year low in May, highlighting the pressure on the ECB to take action.
Watch for some possible moves in Canadian currency and bond markets today, as the Bank of Canada announces its latest decision on interest rates and its outlook on the economy. Governor Stephen Poloz is unlikely to provide much hint, however, on where interest rates could be headed, given a desire to keep the Canadian dollar from rising further.
We detail all the data that's on tap today and stocks likely to see action below.
MARKETS:
Equities:
Futures: S&P 500 -0.12 per cent; Dow -0.06 per cent; Nasdaq -0.12; S&P/TSX -0.11 per cent
Hong Kong's Hang Seng -0.60 per cent
Shanghai composite index -0.65 per cent
Japan's Nikkei +0.22 per cent
London's FTSE 100 -0.21 per cent
Germany's DAX -0.12 per cent
France's CAC 40 -0.10 per cent
Commodities:
WTI crude oil (Nymex Jly) +0.61 per cent at $103.29 (U.S.) a barrel
Gold (Comex Apr) +0.06 per cent at $1,245.20 (U.S.) an ounce
Copper (Comex Jly) -1.32 per cent at $3.10 (U.S.) a pound
Currencies:
Canadian dollar at 91.53 (U.S.), down 0.0014
U.S. dollar index up 0.03 at 80.59
Bonds:
U.S. 10-year Treasury yield 2.59 per cent, down 0.02
ECONOMIC INDICATORS:
U.S. ADP National Employment Report for the private sector showed 179,000 new jobs in May, below the consensus of 215,000 and the fewest jobs added in four months.
U.S. goods and services trade deficit came in at $47.2-billion in April, wider than the expected $40.8-billion and at a two-year high.
U.S. nonfarm productivity in the first quarter fell 3.2 per cent from the previous month, worse than the expected drop of 3.0 per cent.
Canada's merchandise trade balance for April showed a deficit of $640-million, versus expectations for a $200-million surplus.
(10 a.m. ET) Bank of Canada makes policy announcement.
(10 a.m. ET) U.S. releases non-manufacturing ISM.
(2 p.m. ET) Federal Reserve releases its Beige Book on economic conditions.
STOCKS TO WATCH:
Penn West Petroleum Ltd. is facing allegations of manipulating stock options, with an investor demanding the company launch legal action against six former board members.
WestJet says it flew 1.6 million passengers in May, a 5.1 per cent increase from the same time last year.
Laurentian Bank reported Q2 adjusted EPS of $1.29 vs. the Street estimate of $1.24. The bank also raised its dividend.
Other earnings include: Andrew Peller and Nordion.
ANALYST ACTIONS:
BMO Nesbitt Burns upgraded Canadian Pacific Railway to "outperform" from "market perform" with a price target of $205 (Canadian).
Standard & Poor's removed its debt ratings on Goldcorp from creditwatch, where they had been placed with negative implications in January. The outlook is now stable. S&P cited expectations that the company will generate meaningful growth in cash flow from increased gold production.
Desjardins Securities raised its price target on CI Financial to $40.50 (Canadian) from $38.50 and affirmed a "buy" rating after the fund company late Tuesday announced net sales that were at a monthly high and management said it has capacity for share buybacks, dividend growth and strategic investment opportunities.
Canaccord Genuity cut its price target on SNC-Lavalin Group to $60 (Canadian) from $63 and reiterated a "buy" rating.
Sterne Agee downgraded Coach to "neutral" from "buy" and cut its price target to $41 (U.S.) from $51.
Stifel Nicolaus upgraded AutoZone to "buy" from "hold" with a price target of $570 (U.S.).
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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