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 trading week is starting off on a dour note, as news that Japan has unexpectedly fallen into a recession has intensified concerns about a global economic slowdown.
S&P 500 futures are down close to 0.3 per cent, and TSX futures and the Stoxx 600 broad index of European equities are both down about 0.2 per cent.
Japan's economy contracted 1.6 per cent in the third quarter, as companies cut inventories and capital investment was lacklustre. That took many market players off guard, as economists on average were looking for economic expansion of just over 2 per cent.
The Nikkei closed down nearly 3 per cent in reaction to the news. The weak data created further speculation that Prime Minister Shinzo Abe may scrap a sales-tax increase; for now, he said he will analyze the situation before making a decision. Mr. Abe is also weighing a decision on whether to call for a snap election next month.
Also in Asian markets overnight, Hong Kong's Hang Seng index was down 1.2 per cent and Shanghai was down nearly 0.2 per cent. It was a weak start to a new era that has introduced an exchange link that allows Hong Kong and Shaghai investors to trade shares on each other's bourses. Investors with Hong Kong accounts buying into mainland shares far outstripped trade from mainland investors in the opposite direction, with the daily limit for buying Shanghai stocks under the program hit by mid-afternoon.
In energy markets this morning, U.S. crude oil is continuing to hover near $75 (U.S.) a barrel. And natural gas is benefiting from the wave of unusually early cold weather that has settled in across much of this continent; it's up 3 per cent. Temperatures in the U.S. Northeast - which accounts for a great deal of natural gas consumption for heating needs - are expected to dip even further over the next few days.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Futures:
S&P 500 -0.27 per cent; Dow -0.23 per cent; Nasdaq -0.23 per cent; S&P/TSX -0.20 per cent
Equities:
Hong Kong's Hang Seng -1.21 per cent
Shanghai composite index -0.19 per cent
Japan's Nikkei -2.95 per cent
London's FTSE 100 -0.25 per cent
Germany's DAX -0.19 per cent
France's CAC 40 -0.25 per cent
Stoxx 600 -0.19 per cent
Commodities:
WTI crude oil (Nymex Dec) -1.04 per cent at $75.08 (U.S.) a barrel
Natural gas (Nymex Jan) +3.08 per cent at $4.26 (U.S.)
Gold (Comex Dec) +0.22 per cent at $1,188.20 (U.S.) an ounce
Copper (Comex Mar) -0.53 per cent at $3.02 (U.S.) a pound
Currencies:
Canadian dollar at 88.39 (U.S.), down 0.0017
U.S. dollar index up 0.17 at 87.70
Bonds:
U.S. 10-year Treasury yield 2.30 per cent, down 0.02
ECONOMIC INDICATORS:
U.S. Empire State Manufacturing Survey came in at 10.2 in November, below the expected 11.3. But that was still higher than October's reading of 6.2.
Canada's October existing home sales were up 0.7 per cent from September, close to market expectations and rebounding from a 1.4 per cent drop in August. The MLS home price index rose 5.5 per cent from a year earlier, matching expectations.
(915 a.m ET) U.S. industrial production - forecast to rise 0.2 per cent - and capacity utilization.
STOCKS TO WATCH:
U.S. hedge fund Sandell Asset Management sent a letter to TransCanada management today urging the company to overhaul its business strategy, including a possible spinoff of its power business, the New York Times reports.
Baker Hughes shares are up 19 per cent in the premarket after Halliburton confirmed it will buy the company in a $35-billion deal.
Merck said it will receive $850-million and could get up to $2-billion in regulatory and commercial milestone payments to develop and commercialize a tumor treatment with Pfizer. Merck shares are up 3 per cent in the premarket and Pfizer - which cut its earnings foreacst to reflect the $850-million upfront payment - is down about 2 per cent.
Allergan is close to a deal to be acquired by Actavis PLC, according to the Wall Street Journal. The deal is believed to be at a premium to Activis's $59-billion market cap, which would top Valeant Pharmaceuticals International's $53-billion bid.
Osisko Gold Royalties and Virginia Mines said they have agreed to combine. Virginia Mines shareholders would receive about $14.19 per share in Osisko shares, a 41 per cent premium based on Friday closing prices. The friendly deal values Virginia Mines of Quebec City at about $479-million.
Manitoba Telecom Services appointed Jay Forbes chief executive officer. Mr. Forbes was president and CEO of Teranet, a developer, operator and owner of electronic land registration systems.
Tyson Foods reported Q4 adjusted EPS of 87 cents, above the Street consensus of 76 cents.
Other earnings today include: Jacobs Engineering Group; Urban Outfitters.
ANALYST ACTIONS:
Industrial Alliance Securities upgraded Amaya Gaming Group to "buy" from "hold," boosts target to $44 (Canadian) from $31.
Raymond James downgraded Alaris Royalty to "market perform" from "outperform" and maintained a $34.50 (Canadian) price target.
Jacob Securities downgraded Alterra Power to "hold" from "buy" with a price target of 40 cents (Canadian).
Jacob Securities downgraded Primary Energy Recycling to "hold" from "buy" with a price target of $5.40 (Canadian).
BMO Nesbitt Burns downgraded Boardwalk Real Estate Investment Trust to "market perform" from "outperform" with a price target of $72.50 (Canadian).
TD Securities downgraded Dream Office Real Estate Investment Trust to "buy" from "action list buy" with a price target of $32 (Canadian).
Cormark Securities upgraded K-Bro Linen was upgraded to "buy" from "market perform" with a price target of $47 (Canadian).
Cormark Securities downgraded Luna Gold to "market perform" from "buy" with a price target of 45 cents (Canadian).
Cormark Securities upgraded Midway Gold to "speculative buy" from "market perform" with a price target of $1.10 (Canadian).
Cormark Securities upgraded OceanaGold to "top pick" from "buy" with a price target of $4 (Canadian).
TD Securities downgraded Spyglass Resources to "reduce" from "hold" with a price target of 60 cents (Canadian).
Wells Fargo downgraded Hertz Global to "market perform" from "outperform" and lowered its price target to $20-24 from $30-33.
Macquarie upgraded Progressive Waste Solutions to "neutral" from "underperform" with a price target of $31 (U.S.).
Canaccord Genuity downgraded Procter & Gamble to "hold" from "buy" with a price target of $89 (U.S.).
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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