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.
North American stock futures are slightly weaker this morning and overseas equity markets mixed, although that understates the sense of unease among global traders after China released a batch of weak economic data over the weekend and as the Federal Reserve prepares for a policy meeting this week.
Dow and TSX futures are down around 0.1 per cent, and both copper and crude oil - particularly sensitive to the gyrations in the Chinese economy - are seeing losses approaching 1 per cent.
China reported that its industrial output rose 6.9 per cent from a year earlier in August, well below the rise of 9 per cent that was seen in July and - according to Bloomberg - the slowest pace outside the Lunar New Year holiday period of January and February since December 2008. Separate reports on retail sales and fixed-asset investment both were below economists' expectations. Responding to the weak reading on industrial output, the Royal Bank of Scotland today cut its projection for 2014 China growth to 7.2 per cent from 7.6 per cent. The U.S. will be releasing its own industrial production numbers just prior to market open today.
With thoughts that the Chinese government may soon unleash more stimulus measures to bolster its economy, the Shanghai index closed 0.3 per cent higher, reversing earlier losses. But the damage inflicted on commodity markets remains, with Brent crude today slumping to a more than two-year low of under $97 (U.S.) per barrel, and West Texas Intermediate is getting precariously close to breaking below $90.
Meanwhile, continued speculation that the Federal Reserve will start hiking interest rates earlier than thought next year is still pressuring bond prices, with the U.S. 10-year yield hitting 2.62 per cent earlier today, the highest since July 7. The U.S. dollar continues to attract investment flows, with the Bloomberg Dollar Spot Index rising to its strongest level since July 2013.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.15 per cent; Dow -0.11 per cent; Nasdaq -0.08 per cent; S&P/TSX -0.07 per cent
Hong Kong's Hang Seng -0.97 per cent
Shanghai composite index +0.30 per cent
Japan's Nikkei +0.24 per cent
London's FTSE 100 -0.19 per cent
Germany's DAX +0.13 per cent
France's CAC 40 -0.22 per cent
Stoxx 600 -0.08 per cent
Commodities:
WTI crude oil (Nymex Oct) -0.81 per cent at $91.52 (U.S.) a barrel
Gold (Comex Dec) +0.41 per cent at $1,236.60 (U.S.) an ounce
Copper (Comex Dec) -0.80 per cent at $3.08 (U.S.) a pound
Currencies:
Canadian dollar at 90.22 (U.S.), up 0.0003
U.S. dollar index up 0.09 at 84.33
Bonds:
U.S. 10-year Treasury yield 2.60 per cent, down 0.02
ECONOMIC INDICATORS:
U.S. industrial production for August declined 0.1 per cent from July, versus the Street expectation for a rise of 0.3 per cent. August capacity utilization fell 0.3 percentage point to a 78.8 per cent rate.
Canada tentatively scheduled to release July new motor vehicle sales for July, forecast to rise 11.0 per cent from a year earlier.
Canada tentatively scheduled to release existing home sales for August and the MLS home price index.
STOCKS TO WATCH:
Microsoft said it plans to buy Mojang, the maker of Minecraft, for $2.5-billion (U.S.).
Thomson Reuters said it has been notified of an unsolicited mini-tender offer by TRC Capital to purchase up to 2.5 million of its shares at a below market price of $39.75. Thomson Reuters recommends shareholders reject the offer.
Tim Hortons said its same-store sales in Canada in the nine weeks to the end of August rose 3.6 per cent, while U.S. sales rose 7 per cent.
RadioShack shares are up 15 per cent in the premarket after its chief financial officer resigned. The retailer is precarious close to filing for bankruptcy filing, as it's quickly running out of cash.
Nucor said it will pay about $770-million to acquire Gallatin Steel.
Apple announced record pre-orders for iPhone 6 and iPhone 6 Plus.
Alibaba Group Holding, in which Yahoo has a stake, plans to increase the size of its U.S. initial public offering because of "overwhelming" investor demand, media reports suggest this morning. Yahoo shares are up 1.6 per cent in the premarket.
ANALYST ACTIONS:
Goldman Sachs downgraded TransCanada to "sell" from "neutral" with a price target of $47 (U.S.), citing high valuation compared to peers. Shares in TransCanada down 1 per cent in premarket.
TD Securities upgraded Northern Blizzard Resources to "buy" from "hold" and with unchanged price target of $21.50 (Canadian), citing the stock's 8 per cent decline last week.
RBC Dominion Securities downgraded DHX Media to "sector perform" from "outperform" and raised its price target to $8 (Canadian) from $7.50. Canaccord Genuity raised its target to $9.50 from $7.60 and maintained a "buy" rating.
Beacon Securities initiated coverage on Canamax Energy with a "buy" rating and $2.20 (Canadian) price target.
THIS MORNING'S TOP READS ON THE WEB:
The record S&P 500 masks the fact that 47 per cent Nasdaq stocks are in bear market.
Revenge of the active manager.
Buying stocks based on how other people feel.
Stocks that are much cheaper than usual.
Why you should stay away from Alibaba.
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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