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.
The TSX is poised for some decent gains at today's open, playing catch-up to Wall Street's advance on Tuesday when Canadian markets were closed for a holiday. Futures for the S&P/TSX index are up nearly 0.4 per cent in the premarket, and so far it appears U.S. markets will continue to lend support today, with Dow futures up nearly 0.01 per cent this morning.
The Dow Jones industrial average came within two points of the 17,000 market on Tuesday, but pared gains later tin the day and ended up 0.7 per cent. Both the Dow and S&P 500 hit fresh record highs, and that positive backdrop should be enough to propel Canada's main stock index its own a fresh all-time high at today's open. On Monday, it closed at its highest level ever.
For now, there continues to be little on the horizon that poses a serious threat to the stock market rally. But investors are being advised to use caution, given that equities look fully valued based on expected earnings growth, and market volumes and volatility levels continue to be soft - showing that there's little conviction that stocks can continue going up for much longer without a pullback.
The U.S. will release factory orders data shortly after the open. And also likely to grab the market's attention today will be Federal Reserve Chair Janet Yellen, who will deliver a lecture at the International Monetary Fund's headquarters in Washington late this morning. Her appearance will include a conversation with IMF Managing Director Christine Lagarde, and traders will be on the alert for any possible hints of when the era of record low interest rates will come to an end in the world's biggest economy.
Now, here's a closer look at what's going on this morning and what is still to come today.
MARKETS:
Equities:
Futures: S&P 500 +0.08 per cent; Dow +0.12 per cent; Nasdaq +0.10; S&P/TSX +0.37 per cent
Hong Kong's Hang Seng +1.55 per cent
Shanghai composite index +0.42 per cent
Japan's Nikkei +0.29 per cent
London's FTSE 100 +0.34 per cent
Germany's DAX +0.21 per cent
France's CAC 40 +0.02 per cent
Commodities:
WTI crude oil (Nymex Aug) -0.26 per cent at $105.07 (U.S.) a barrel
Gold (Comex Aug) +0.08 per cent at $1,327.60 (U.S.) an ounce
Copper (Comex Sep) -0.02 per cent at $3.20 (U.S.) a pound
Currencies:
Canadian dollar at 94.05 (U.S.), up 0.0001
U.S. dollar index up 0.04 at 79.86
Bonds:
U.S. 10-year Treasury yield 2.56 per cent, down 0.01
ECONOMIC INDICATORS:
ADP said U.S. private-sector job gains in June were 281,000, ahead of Street forecasts of 205,000 and May's 179,000.
(9:30 a.m. ET) RBC's manufacturing PMI data will be released in Canada.
(10 a.m. ET) U.S. factory orders data will be released for May, with the consensus calling for a 0.2 per cent decrease.
(11 a.m. ET) U.S. Federal Reserve chair Janet Yellen will speak at the International Monetary Fund.
STOCKS TO WATCH:
JPMorgan Chase shares are down 0.5 per cent in the premarket after CEO Jamie Dimon said he had been diagnosed with early stage throat cancer but would remain actively involved in the largest U.S. bank's business while in treatment.
Labrador Iron Mines Holdings Ltd. says it has suspended all operations at its mines for the year, due to the low price of iron ore and a refocus by the company to cut costs.
Flight-simulator manufacturer CAE Inc. has won a series of contracts in the military aviation sector valued at about $110-million.
Roche said it would pay up to $1.725-billion (U.S.) to buy Seragon Pharmaceuticals, a privately-held U.S. biotech company that researches breast cancer treatments.
Rackpace Hosting shares are up nearly 10 per cent in the U.S. premarket after the TechCrunch website reported that the company may take itself private.
Constellation Brands shares are up 7 per cent in the premarket after reporting higher-than-expected quarterly revenue, with net sales of $1.53-billion beating the consensus expectation of $1.43-billion.
ANALYST ACTIONS:
CIBC World Markets upgraded Canadian Pacific Railway to "sector outperformer" from "sector performer" and raised its price target to $225 (Canadian) from $180.
CIBC World Markets raised its price target on Canadian National Railway to $76 (Canadian) from $65 and maintained a "sector performer" rating.
BMO Nesbitt Burns upgraded Perpetual Energy to "outperform" from "market perform" and raised its price target to $2.75 (Canadian) from $2.
Analysts are initiating coverage today on PrairieSky Royalty, the Encana spinoff, with CIBC World Markets assigning a "sector outperformer" rating and $43 (Canadian) price target and RBC Dominion Securities starting coverage with a "sector perform" rating and also a $43 target.
Desjardins Securities cut its price target on Labrador Iron Mines Holdings to 2 (Canadian) cents a share from 10 cents and maintained a "sell" rating.
Deutsche bank upgraded Bank of America to "buy" from "hold" and raised its price target to $18 (U.S.) from $16.50.
Raymond James downgraded Harley-Davidson to "market perform" from "strong buy" and removed its $84 (U.S.) price target.
Barclays downgraded Bristol-Myers Squibb to "equalweight" from "overweight" and cut its price target to $46 (U.S.) from $65.
Barclays upgraded Eli Lilly to "equalweight" from "underweight" with a price target of $63 (U.S.).
Evercore Partners raised its price target on Apple to $115 (U.S.) from $100 and maintained an "overweight" rating.
Goldman Sachs downgraded El Paso Pipeline Partners to "sell" from "neutral" with a price target of $33.
Atlantic Equities upgraded Oracle to "overweight" from "neutral" and raised its price target to $48 (U.S.) from $39.
Baird downgraded U.S. Bancorp to "neutral" from "outperform" and maintained a $44 (U.S.) price target.
Susquehanna upgraded Baker Hughes to "positive" from "neutral" with a price target of $90 (U.S.).
Macquarie upgraded Urban Outfitters to "outperform" from "neutral" and raised its price target to $43 (U.S.) from $37.
THIS MORNING'S TOP INVESTING LINKS:
Canada had one of the best-performing stock markets year to date.
The S&P 500 has been trouncing the Dow.
U.S. dividend payouts keep on growing.
Momentum stocks have made quite a comeback.
10-year annualized equity returns remain below average.
Why the iPhone 6 - not the iWatch - is Apple's biggest launch this year.
JPMorgan says now is a great time to invest in emerging markets.
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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