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.
Global markets overcame their two big hurdles this week - the Fed's latest views on monetary policy and the threat of Scottish independence from the United Kingdom - and the result will almost certainly be record highs today for both the S&P 500 and the Dow.
U.S. and Canadian stock futures are up between 0.3 per cent and 0.4 per cent, while the Stoxx 600 index of European markets is up 0.6 per cent.
Scotland's rejection of independence - the 'no' side garnered 54 per cent support - was pretty much anticipated by global traders, but has removed another risk factor nonetheless as equity markets keep pushing higher. The biggest reactions have been in currency and bond markets in Europe, where the British pound is trading at the strongest levels in two years against the euro, and Spanish 10-year bond yields have tumbled. The result may ease pressure on Spain over calls for its Catalonia region to be given a similar choice.
Meanwhile, some global banks have been pushing up their targets for the S&P 500 this week after the Fed maintained its insistence that interest rates will stay near record lows for a considerable time. BTIG raised its year-end price target to 2,075-2,100 from 1,980 today, believing markets will see some seasonal strength as the winter months approach. Credit Suisse earlier this week raised its target to 2,050, explaining that while equities aren't cheap, they do look inexpensive relative to other asset classes such as bonds and in many cases, real estate.
Both the Dow and S&P 500 closed at record highs on Thursday, so it won't take much to break all-time records today. The S&P/TSX composite index is still over 200 points away from its record highs earlier this summer, and with gold weakening again today, it's unlikely to outperform Wall Street.
Meanwhile, the largest IPO in history is set to start trading today: Alibaba. And the Canadian dollar has spiked on the latest inflation numbers, which showed the highest core inflation reading in 28 months.
More on all this below.
MARKETS:
Equities:
Futures: S&P 500 +0.31 per cent; Dow +0.40 per cent; Nasdaq +0.37 per cent; S&P/TSX +0.33 per cent
Hong Kong's Hang Seng +0.57 per cent
Shanghai composite index +0.56 per cent
Japan's Nikkei +1.58 per cent
London's FTSE 100 +0.67 per cent
Germany's DAX +0.68 per cent
France's CAC 40 +0.14 per cent
Stoxx 600 +0.64 per cent
Commodities:
WTI crude oil (Nymex Nov) -0.05 per cent at $91.93 (U.S.) a barrel
Gold (Comex Dec) -0.37 per cent at $1,222.30 (U.S.) an ounce
Copper (Comex Dec) +0.11 per cent at $3.10 (U.S.) a pound
Currencies:
Canadian dollar at 91.60 (U.S.), up 0.0017
U.S. dollar index up 0.22 at 84.54
Bonds:
U.S. 10-year Treasury yield 2.63 per cent, up 0.01
ECONOMIC INDICATORS:
Canada's consumer price index for August rose 2.1 per cent from a year earlier, or flat from the previous month, matching Street expectations. But core inflation rose 2.1 per cent, its biggest gain in 28 months, and above Street expectations for 1.8 per cent.
Canada wholesale trade fell 0.3 per cent in July versus expectations for a rise of 0.8 per cent.
(10 a.m. ET) U.S. releases leading indicator for August.
STOCKS TO WATCH:
Alibaba Group Holding priced its initial public offering Thursday night at $68 (U.S.) a share, the top end of the expected range, raising $21.8-billion. The stock starts trading this morning on the New York Stock Exchange.
Shares in Yahoo will see big action today; the Internet giant owns a big stake in Alibaba, and much of its rally over the past two years has been tied to the fate of the Chinese e-commernce site's IPO prospects. Shares in Yahoo are up 0.3 per cent in the premarket.
Shares in Oracle are down 2 per cent in the premarket after its founder, Larry Ellison, resigned after 35 years as CEO. The company said that Safra Catz and Mark Hurd, currently co-presidents, would be named joint CEOs to replace Ellison.
TransCanada shares will be in focus again today. Several U.S. activist hedge funds are reportedly reviewing the pipeline operator as a break-up candidate. TransCanada issued a press release this morning touting the benefits of its current corporate structure. Shares in the company rose 3.7 per cent on Thursday.
ANALYST ACTIONS:
Cantor Fitzgerald initiated coverage on Alibaba with a "buy" rating and $90 (U.S.) price target. There are three other buy ratings so far on the Street on Alibaba, with an average price target of $91.25, according to StreetInsider.com.
Cantor Fitzgerald raised its price target on Yahoo to $43 (U.S.) based on Alibaba's valuation.
Deutsche Bank downgraded Oracle to "hold" from "buy" and cut its price target to $42 (U.S.) from $48.
Raymond James upgraded Cervus Equipment to "outperform" from "market perform" and hiked its price target to $22.50 (Canadian) from $22.
Desjardins Securities upgraded Detour Gold to "buy" from "hold" but cut its price target to $12.50 (Canadian) from $16.
BMO Nesbitt Burns upgraded Secure Energy Services to "outperform" from "market perform" and hiked its price target to $30 (Canadian) from $26.
RBC Dominion Securities upgraded Redknee Solutions to "outperform" from "sector perform" and maintained a $5.50 (Canadian) price target.
Desjardins Securities boosted its price target on Canadian Tire to $129 (Canadian) from $118 and maintained a "buy" rating.
Desjardins Securities boosted its price target on Loblaw to $64 (Canadian) from $56 and maintained a "buy" rating.
THIS MORNING'S TOP READS ON THE WEB:
Jim O'Shaughnessy on why you should be worried about companies piling on debt.
Are so-called quality ETFs worthy of your investment dollars?
Algorithms make better predictions - except when they don't.
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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