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.
Stock futures have reversed earlier losses and are up modestly heading into today's open amid commentary from the European Central Bank this morning after it announced - as expected - no change in its key interest rates.
The ECB refrained from announcing major new stimulus measures today but ECB head Mario Draghi said in a news conference that bank officials are unanimous on using more stimulus if needed. He said risks to the economic outlook are on the downside.
The need to get the euro zone economy humming was on display again today as Germany released industrial orders data for September. New orders rose by only 0.8 per cent in monthly adjusted terms, far below the 2 per cent gain expected by economists. However, Germany revised up the data for August, now saying that total orders declined by only 4.2 per cent instead of the 5.7 per cent drop originally reported.
Meanwhile, it's an especially busy day for Canadian earnings results, and we have highlights in our Stocks to Watch section below, including earnings beats by BCE and Telus. SNC-Lavalin has also just announced a sweeping restructuring that will result in 4,000 jobs cuts and $200-million in charges over the next 18 months.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Futures:
S&P 500 +0.19 per cent; Dow +0.34 per cent; Nasdaq +0.29 per cent; S&P/TSX +0.30 per cent
Equities:
Hong Kong's Hang Seng -0.20 per cent
Shanghai composite index +0.28 per cent
Japan's Nikkei -0.86 per cent
London's FTSE 100 -0.14 per cent
Germany's DAX +0.20 per cent
France's CAC 40 +0.11 per cent
Stoxx 600 -0.11 per cent
Commodities:
WTI crude oil (Nymex Dec) -0.24 per cent at $78.49 (U.S.) a barrel
Natural gas (Nymex Jan) +0.23 per cent at $4.30 (U.S.)
Gold (Comex Dec) -0.09 per cent at $1,144.70 (U.S.) an ounce
Copper (Comex Dec) -0.23 per cent at $3.00 (U.S.) a pound
Currencies:
Canadian dollar at 87.72 (U.S.), down 0.0005
U.S. dollar index down 0.18 at 87.26
Bonds:
U.S. 10-year Treasury yield 2.34 per cent, down 0.006
ECONOMIC INDICATORS:
Canada building permits for September. rose 12.7 per cent from August, ahead of economists' estimates calling for a 5 per cent rise.
U.S. initial jobless claims for last week came in at 278,000, below the 283,000 that the Street was expecting. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,250 to 279,000, the lowest reading since April 2000.
U.S. productivity in the third quarter grew at a 2 per cent annual pace, marking the fourth large increase in the past five quarters.
STOCKS TO WATCH:
SNC-Lavalin reported a sweeping restructuring of its operations that will result in 4,000 job cuts and the company taking $200-million in charges over the next 18 months. The company is revising its 2014 EPS guidance range to $2.15 to $2.40, from its previous guidance of $2.80 to $3.05.
Canadian beverage maker Cott Corp said it would buy DSS Group Inc, parent of U.S. direct-to-consumer water and coffee provider DS Services of America Inc, for $1.25-billion (U.S.).
Canadian Natural Resources reported quarterly EPS of 89 cents (Canadian) vs. the Street estimate of 75 cents, though revenues of $4.7-billion missed by about $200-million. Shares are up 1 per cent in the premarket.
BCE reported EPS of 83 cents (U.S.) vs. Street estimates of 77 cents. Revenues also beat Street views. Shares are up 2.4 per cent in the premarket.
Canadian Tire reported Q3 adjusted EPS of $2.17 vs. the Street estimate of $2.01. It announced a 10-cent hike to its dividend.
Telus boosted its dividend by 2 cents a share as its profit topped estimates. Adjusted EPS of 64 cents beat Street expectations of 61 cents. Revenue was in line with estimates.
Air Canada reported adjusted profit of $1.55, beating the Street estimate of $1.44.
Crescent Point Energy reported quarterly EPS of 42 cents, matching Street views.
Quebecor had a $45.1-million net profit in the third quarter and $65.6-million or 53 cents per share from continuing operations, both improved over the comparable results a year earlier.
Tesla Motors was up 5 per cent in premarket trading after reporting third-quarter results after the bell on Wednesday. The electric car maker also said production of its next vehicle would be delayed until the autumn of 2015.
Wendy's Co reported a 20 percent drop in quarterly sales as it sold more company-owned stores to franchisees.
Other earnings today include: Altus Group, Advance Auto Parts; AOL; Apache; AuRico Gold; Canadian Tire; Cascades; Chartwell REIT; CI Financial; Comincar REIT; Dorel Industries; Chesapeake Utilities; Gluskin Sheff; Extendicare; Lions Gate Entertainment; IGM Financial; Interfor; Inter Pipeline; Great-West Lifeco; Main Street Capital; Pacific Rubiales; Morguard REIT ; Molson Coors Brewing; Orbitz Worldwide; Primero Mining; Student Transportation; Richmont Mines; Saputo; Tekmira Pharmaceuticals; TransGlobe Energy; TMX Group; Stantec; Walt Disney; Zynga.
ANALYST ACTIONS:
Raymond James slashed its price target on North American Energy Partners to $7 (Canadian) from $11 but maintained an "outperform" rating.
Raymond James slashed its price target on North American Palladium to 10 cents (Canadian) from 25 cents and reiterated an "underperform" rating.
Desjardins Securities raised its price target on Intact Financial to $76 (Canadian) from $70 and maintained a "hold" rating.
Desjardins Securities raised its price target on Tim Hortons to $95.50 (Canadian) from $89 and maintained a "hold" rating.
Canaccord Genuity slashed its price target on Long Rung Exploration to $4 (Canadian) from $7 and downgraded its rating to "hold" from "buy."
Canaccord Genuity cut its price target on Tahoe Resources to $20 (Canadian) from $25.50 and maintained a "hold" rating.
Deutsche Bank downgraded IntercontinentalExchange to "hold" from "buy" with a price target of $230 (U.S.).
Deutsche Bank downgraded Duke Energy to "hold" from "buy" but raised its price target to $81 (U.S.) from $78.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Smelling a bargain, ETF investors are piling into Russian stocks.
REITs may look richly valued right now, but they have many diversification benefits.
Don't bet big on the predictive power of metrics.
When negativity helps a bull market.
How the markets tempt us into making mistakes.
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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