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 a lower open this morning, as Wall Street futures are sinking and most major commodity prices are posting significant losses.
Dow and S&P 500 futures are seeing losses of more than 0.4 per cent, and copper and crude oil sectors may take the biggest hit on Bay Street today, as futures prices for both commodities are down around 1 per cent.
Sentiment for copper and oil are driven in large part by the growth in the Chinese commodity, and news on that front wasn't encouraging overnight as the country released its latest inflation numbers. Annual consumer inflation eased to 2 per cent in August, slowing from July's 2.3 per cent rise. Producer prices, meanwhile, dipped 1.2 per cent after falling 0.9 per cent in July, slightly worse than expected.
The Shanghai composite index ended its session down nearly 0.3 per cent, but was trading positively before the inflation figures were revealed that heightened concerns yet again of the sluggishness - and stimulus dependent - state of its economy. While many expect more stimulus measures from the Chinese government, it has yet to make a firm commitment in the short term.
Commodity prices have been pressured by a stronger U.S. dollar in recent sessions, and that looks set to continue today. Crude oil is also being hurt today by the International Energy Agency cutting its global oil demand forecast for the third month in a row.
Meanwhile, bond yields have been on the rise, amid speculation that the Federal Reserve could hike interest rates sooner than many market players expect. Some market observers now think the first move could happen in the first quarter of next year, instead of mid to late 2015.
The Fed will likely provide more hints next week after it holds a policy meeting. There's talk Fed officials could alter their guidance on the likely path of interest rates to give them more flexibility to react to changes in the economy. To date, the Fed has said that its benchmark interest rate would stay low for a "considerable time" after it completes monthly bond purchases.
There are several Canadian earnings reports for investors to absorb this morning, including Lululemon, whose shares are spiking in the premarket. More on those earnings reports and much more below.
MARKETS:
Equities:
Futures: S&P 500 -0.45 per cent; Dow -0.47 per cent; Nasdaq -0.44 per cent; S&P/TSX -0.26 per cent
Hong Kong's Hang Seng -0.17 per cent
Shanghai composite index -0.27 per cent
Japan's Nikkei +0.76 per cent
London's FTSE 100 -0.25 per cent
Germany's DAX -0.03 per cent
France's CAC 40 -0.26 per cent
Stoxx 600 +0.09 per cent
Commodities:
WTI crude oil (Nymex Dec) -1.13 per cent at $89.42 (U.S.) a barrel
Gold (Comex Dec) -0.08 per cent at $1,244.30 (U.S.) an ounce
Copper (Comex Dec) -0.88 per cent at $3.08 (U.S.) a pound
Currencies:
Canadian dollar at 90.85 (U.S.), down 0.0050
U.S. dollar index up 0.003 at 84.28
Bonds:
U.S. 10-year Treasury yield 2.53 per cent, down 0.01
ECONOMIC INDICATORS:
Canada's new housing price index for July was flat from June, versus expectations for a 0.2 per cent rise.
U.S. initial jobless claims rose to 315,000 last week from the previous week's reading of 302,000, above expectations for 300,000.
(2 p.m. ET) U.S. releases its latest budget deficit numbers for August. Consensus is for a deficit of $132.5-billion (U.S.).
STOCKS TO WATCH:
Lululemon Athletica reported EPS of 33 cents (U.S.) vs. expectations of 29 cents. It also raised its forecast for the year by a penny to $1.72 to $1.77 a share. Shares are up 13 per cent in the premarket.
Dollarama reported Q2 EPS of $1.03, matching the Street view. It also announced plans for a two-for-one stock split.
Empire Co. reported adjusted earnings of $1.43 a share, well ahead of expectations of $1.35.
Transat reported adjusted profit of 69 cents per share, beating Street expectations for 67 cents.
Troubled electronics retailer RadioShack reported its tenth straight quarterly loss and said it was in advanced talks with a number of parties to raise capital. It said it may need to file for bankruptcy.
Other earnings today include: Lumenpulse; North West Co.; Tecsys; Transcontinental; Cherokee; Kroger.
ANALYST ACTIONS:
Credit Suisse downgraded National Bank of Canada to "underperform" from "neutral" with a price target of $55 (Canadian).
Industrial Alliance upgraded Carfinco Financial Group to "strong buy" from "buy," keeps $11 (Canadian) price target.
Desjardins Securities initiated coverage on Mandalay Resources with a "top pick" rating and $1.50 (Canadian) price target.
RBC Dominion Securities initiated coverage on Northern Blizzard Resources with a "sector perform" rating and $21 (Canadian) price target.
RBC Dominion Securities upgraded JDS Uniphase to "outperform" from "sector perform" with a price target of $18 (U.S.).
Canaccord Genuity initiated coverage on Twitter with a "buy" rating and $62 (U.S.) price target.
Deutsche Bank initiated coverage on CME Group with a "buy" rating and $85 (U.S.) price target.
THIS MORNING'S TOP READS ON THE WEB:
This technical analysis suggests trouble could be ahead for Canadian stocks.
The best and worst part about investing in emerging markets.
How to analyze volatility for timely signals about market risk.
What you need to know about tracking errors when it comes to ETFs.
How to analyze the worthiness of smaller ETFs.
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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