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.
A confirmed case of Ebola in the city that is the world's financial heartbeat is taking its toll on investor confidence this morning, with North American stock futures and European stocks modestly in the red.
A New York doctor tested positive for Ebola Thursday night after returning from work in West Africa with an aid agency. The development from the largest city in the U.S. has rekindled concerns about its spread and what impact Ebola may have on global growth, including in the travel sector, at a time when the world's economic outlook is looking fragile. Perhaps not surprisingly, the news has sparked a rally in shares of companies that manufacture protective gear.
Traders have another reason to be nervous and do some profit-taking ahead of the weekend: European bank stress test results are due. The test results for 130 banks will come on Sunday. But Bloomberg News is reporting this morning it has seen a draft document and it shows that 25 banks failed the financial health checks.
Corporate earnings, meanwhile, continue to be in focus. Heading into this morning, just over 50 per cent of the S&P 500's market cap has reported. So far, earnings are beating by 4.2 per cent while revenues have surprised by 0.7 per cent, according to RBC calculations.
Expectations are for earnings per share growth of 8.4 per cent. Assuming an historical beat rate for those companies that have yet to report, EPS growth is on track to come in near 10 per cent, RBC says. But the lacklustre growth in the top line hasn't been giving investors a lot of reason to cheer and push valuations higher.
We highlight earnings results so far today and a closer look at what's going on below:
MARKETS:
Futures:
S&P 500 -0.28 per cent; Dow -0.17 per cent; Nasdaq -0.29 per cent; S&P/TSX -0.16 per cent
Equities:
Hong Kong's Hang Seng -0.13 per cent
Shanghai composite index -0.02 per cent
Japan's Nikkei +1.01 per cent
London's FTSE 100 -0.50 per cent
Germany's DAX -0.71 per cent
France's CAC 40 -0.69 per cent
Stoxx 600 -0.38 per cent
Commodities:
WTI crude oil (Nymex Dec) -0.85 per cent at $81.39 (U.S.) a barrel
Natural gas (Nymex Jan) -0.76 per cent at $3.76 (U.S.)
Gold (Comex Dec) +0.16 per cent at $1,231.30 (U.S.) an ounce
Copper (Comex Dec) -0.08 per cent at $3.04 (U.S.) a pound
Currencies:
Canadian dollar at 89.18 (U.S.), up 0.0014
U.S. dollar index down 0.01 at 85.82
Bonds:
U.S. 10-year Treasury yield 2.25 per cent, down 0.02
ECONOMIC INDICATORS:
(10 a.m. ET) U.S. new home sales for September. Consensus is for a 6.8 per cent drop to an annualized rate of 470,000.
STOCKS TO WATCH:
Shares in Lakeland Industries, which makes hazmat suits, is up 15 per cent in the premarket on news of the New York City Ebola case. Alpha Pro Tech, a maker of protective goggles, is up more than 20 per cent. Versar, which makes hazmat suits and mobile decontamination shelters, was up 12 per cent.
Tekmira Pharmaceuticals, which is working on a vaccine for Ebola, is up 3.4 per cent in the U.S. premarket.
United Parcel Service reports Q3 EPS of $1.32 (U.S.) vs. expectations for $1.28.
Bristol Myers reported Q3 EPS of 45 cents (U.S.) versus expectations for 42 cents. Shares are up 1 per cent in the premarket.
Colgate-Palmolive reported adjusted Q3 EPS of 76 cents (U.S.) vs. expectations for 75 cents. Shares are up 2 per cent in the premarket.
Ford reported adjusted Q3 EPS of 24 (U.S.) cents vs. expectations for 19 cents. But shares are down 0.3 per cent in the premarket.
Proctor & Gamble reported Q1 core EPS of $1.07 (U.S.), matching Street views. It also announced a spin-off of its Duracell battery business. Shares are up 1.5 per cent in the premarket.
Nasdaq OMX Group reported adjusted Q3 profit of 72 cents (U.S.), beating the Street estimate by 2 cents.
Amazon shares are down about 10 per cent in the premarket after late Thursday reporting a wider-than-expected Q3 loss and projecting sales growth below expectations.
Microsoft shares are up nearly 3 per cent in the premarket after late Thursday reported fiscal first-quarter earnings of 54 cents on revenue of $23.2-billion, beating expectations for 49 cents and $22.01-billion, respectively.
Other earnings today include: Capital Power; Postmedia Network.
ANALYST ACTIONS:
TD Securities upgraded Potash Corp. to "buy" from "hold" with a price target of $38 (U.S.).
Scotia upgraded Mullen Group to "sector outperform" from "sector perform." But BMO Nesbitt Burns cut its price target to $25 (Canadian) from $33, and reiterated a "market perform" rating, commenting that it sees little growth on the horizon for the company.
RBC Dominion Securities cut its price target on AutoCanada to $84 (Canadian) from $92 and maintained an "outperform" rating.
Canaccord Genuity cut its price target on Africa Oil to $7 (Canadian) from $10 and maintained a "speculative buy" rating.
Cowen downgraded Amazon.com to "market perform" from "outperform" and cut its price target to $325 (U.S.) from $390. RBC Dominion Securities cut its price target to $420 from $435 but maintained an "outperform" rating.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Five U.S. dividend-paying stocks with beaten-down prices.
Earnings are nicely beating Street expectations this earnings season - but the same doesn't hold true for revenues.
Psychology is driving this market and it is truly fascinating to watch.
Bill Gross is shaking things up at Janus Capital.
A check-in on the U.S. sector leaders right now.
Japanese stocks priced in U.S. dollars are ridiculously cheap.
New evidence on the relation between the enterprise multiple and average stock returns.
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Have feedback on our daily Before the Bell report and suggestions on how to make it more useful in your investing day? Please contact Inside the Market Editor Darcy Keith at dakeith@globeandmail.com.
Darcy Keith