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.
Markets appear set to start today's session modestly in the red for the second day in a row, with more signs of a sluggish economy in Europe keeping indexes there tracking lower this morning, while investors on this side of the pond are showing reluctance to take fresh positions ahead of the second-quarter earnings season.
S&P 500 and TSX stock futures are down in the 0.1 per cent to 0.2 per cent range, and key European indexes are off about 0.5 per cent. Asian markets mostly treaded water overnight amid little fresh news.
Alcoa will release its results for the April to June period after markets close today, kicking off an earning season that will likely need to at least meet expectations to justify current valuations. The S&P 500 is trading at 16.7 times forward earnings, above the five-year average valuation of 14.3; profits are seen growing 6.2 per cent in the second quarter, down from the 8.4 per cent growth that had been forecast at the start of April, according to Thomson Reuters data.
Traders aren't in a bullish mood in Europe today as more economic data cast doubts on the pace of the economic recovery there. Weak industrial production figures for Germany on Monday was followed up today by a report showing U.K. industrial output falling 0.7 per cent in May from April, missing forecasts for a 0.2 per cent rise. News out of Europe's corporate sector was also sparking concerns today, as Air France KLM cut its profit guidance because of overcapacity - just two weeks after Luftansa also issued a profit warning.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.14 per cent; Dow -0.11 per cent; Nasdaq -0.08 per cent; S&P/TSX -0.17 per cent
Hong Kong's Hang Seng Unchanged
Shanghai composite index +0.20 per cent
Japan's Nikkei -0.43 per cent
London's FTSE 100 -0.48 per cent
Germany's DAX -0.49 per cent
France's CAC 40 -0.45 per cent
Commodities:
WTI crude oil (Nymex Aug) -0.13 per cent at $103.40 (U.S.) a barrel
Gold (Comex Aug) +0.28 per cent at $1,320.70 (U.S.) an ounce
Copper (Comex Sep) +0.20 per cent at $3.27 (U.S.) a pound
Currencies:
Canadian dollar at 93.58 (U.S.), down 0.0004
U.S. dollar index up 0.06 at 80.28
Bonds:
U.S. 10-year Treasury yield 2.60 per cent, down 0.02
ECONOMIC INDICATORS:
(10 a.m. ET) U.S. releases the JOLTS job openings report, a labour market data point that the Fed monitors.
STOCKS TO WATCH:
Jean Coutu Q1 EPS was 29 cents, missing by a penny.
Premier Gold significantly increased its resources at its flagship Hardrock asset located in Geraldton, Ontario.
KLA-Tencor said it raised its stock buyback program by up to 13 million additional shares.
Earnings include: Alcoa after today's market close. Analysts are looking for earnings per share of 12 cents (U.S.) on revenue of $5.65-billion.
ANALYST ACTIONS:
Barclays raised its price target on Alimentation Couche-Tard to $33 (Canadian) from $30 and maintained an "overweight" rating.
BMO Nesbitt Burns raised its price target on Element Financial to $18.50 (Canadian) from $17 and maintained an "outperform" rating.
BMO Nesbitt Burns initiated coverage on PrairieSky Royalty with an "outperform" rating and $45 (Canadian) price target.
Jennings Capital initiated coverage on Great Prairie Energy Services with a "buy" recommendation and 12-month price target of 75 cents (Canadian).
Jennings Capital initiated coverage on Treasury Metals with a "speculative buy" rating and 12-month price target of 55 cents (Canadian).
B. Riley upgraded Groupon to "buy" from "neutral" with a price target of $9.50 (U.S.).
Piper Jaffray upgraded Guess to "overweight" from "neutral" and raised its price target to $32 (U.S.) from $25.
THIS MORNING'S TOP INVESTING LINKS:
One of academia's leading experts on gold prices puts bullion's fair value today at a little higher than $800.
Here's what a real "perfect" portfolio looks like.
Anyone with a longer-term time horizon should look at a correction as an opportunity.
BlackBerry's current asset management bodes well for the future.
Buying high is so prevalent that it looks almost systematic when plotted on a chart.
Reasons to be cautious about target-date funds.
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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