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.
Markets are rather subdued this morning, as traders across the globe await the release of the minutes from the last Federal Reserve policy meeting. U.S. and Canadian stock futures are nearly unchanged, with European shares generally modestly higher after minor losses in Asia overnight.
The minutes could provide some fresh insight into the thinking of Fed members and how close the central bank may be to hiking interest rates. The last time minutes were released from a policy meeting, on Oct. 8, the S&P 500 saw its biggest rally this year, jumping by 1.7 per cent, as Fed officials suggested their U.S. growth projections could take a hit if overseas economic growth softened.
Traders this time around are reluctant to take on fresh positions until the Fed's latest thinking is known. The U.S. dollar is modestly higher against most major currencies, however, amid thoughts the Fed is moving closer to raising interest rates.
The TSX closed at its highest level in seven weeks on Tuesday and the S&P 500 enjoyed its 43rd record close of the year. As such, valuations are becoming increasingly concerning, especially given the recent signs of weakness in the global economy outside of the U.S.
Several stocks are on the move this morning, including BlackBerry, which received a downgrade from Wall Street titan Morgan Stanley. Details on this and much more below.
MARKETS:
Futures:
S&P 500 -0.07 per cent; Dow -0.06 per cent; Nasdaq +0.02 per cent; S&P/TSX +0.10 per cent
Equities:
Hong Kong's Hang Seng -0.66 per cent
Shanghai composite index -0.22 per cent
Japan's Nikkei -0.32 per cent
London's FTSE 100 -0.12 per cent
Germany's DAX +0.33 per cent
France's CAC 40 +0.20 per cent
Stoxx 600 +0.21 per cent
Commodities:
WTI crude oil (Nymex Jan) +0.29 per cent at $74.86 (U.S.) a barrel
Natural gas (Nymex Jan) +0.41 per cent at $4.38 (U.S.)
Gold (Comex Dec) +0.05 per cent at $1,197.70 (U.S.) an ounce
Copper (Comex Mar) +0.25 per cent at $3.00 (U.S.) a pound
Currencies:
Canadian dollar at 88.20 (U.S.), down 0.0029
U.S. dollar index up 0.06 at 87.63
Bonds:
U.S. 10-year Treasury yield 2.34 per cent, up 0.02
ECONOMIC INDICATORS:
U.S. housing starts for October was at an annualized rate of 1.009 million. Expectations were for 1.025 million.
U.S. building permits for October were 1.080 million, versus expectations for 1.040 million.
(2 p.m. ET) FOMC releases minutes from its Oct. 28-29 meeting.
STOCKS TO WATCH:
TransCanada shares are down 1 per cent after the U.S. Senate Tuesday night narrowly rejected a bill to approve the Keystone XL pipeline. The company has also released a statement saying it expects its dividend to grow at an average annual rate of at least 8 per cent through 2017.
Cliffs Natural Resources said it was looking to exit its Eastern Canadian iron ore operations, which may result in the closure of its Bloom Lake mine in Quebec. Its shares are down about 7 per cent in the premarket.
Suncor Energy said late Tuesday it planned to spend $7.2 billion-$7.8 billion (Canadian) in 2015, with more than half of those funds earmarked for growth projects. Suncor said it expects production next year will average between 540,000 to 585,000 barrels of oil equivalent per day (boe/d). The company said output this year would fall in the lower end of its guidance range of between 525,000 to 570,000 boe/d. The production targets are below the Street consensus and stock is likely to come under pressure today.
Target reported adjusted EPS of 54 cents (U.S.), beating the Street estimate of 47 cents. Shares are up more than 2 per cent in the premarket.
Lowe's shares rose 4.5 per cent in premarket trading after the No. 2 U.S. home improvement products retailer raised its full-year profit and sales forecast as an improving job market encourages home owners to increase spending on renovations.
Metro reported Q4 EPS $1.32 vs estimated $1.27.
Other earnings today include: Redknee Solutions; J. M. Smucker; Keurig Green Mountain; L Brands; Lowe's Companies; Staples; Target; Williams-Sonoma.
Oplink Communications has agreed to be acquired by Koch Industries for $445-million.
ANALYST ACTIONS:
Raymond James upgraded Potash Corp. to "outperform" from "market perform" and increased its price target to $40 (U.S.) from $38.50. It cited a tightening market for the commodity. Shares are up 1.7 per cent in the premarket.
Morgan Stanley downgraded BlackBerry to "underweight" from "equal weight" with a $7 (U.S.) price target. Shares are down 4.5 per cent in the premarket. The bank says the market may be getting ahead of itself in assuming BlackBerry will meet its new software revenue targets laid out by CEO John Chen.
Macquarie downgraded Iamgold to "underperform" from "neutral" with a price target of $3.25 (Canadian).
Deutsche Bank initiated coverage on Pacific Rubiales Energy with a "sell" rating and $10.60 (Canadian) price target.
TD Securities initiated coverage on Chinook Energy with a "buy" rating and $2.25 (Canadian) price target.
Merrill Lynch upgraded PetSmart to "neutral" from "underperform" and raised its price target to $80 (U.S.) from $55.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Why investors, both individual and professional, often make it even harder for active managers to outperform.
M&A valuations are creeping into the danger zone.
Bill Ackman has had an incredibly good year.
Russia is buying a lot of gold.
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Darcy Keith