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.
Wall Street is aiming for more record highs today, as global markets gain more latitude on continued hopes that central bankers will be able to recharge ailing economies in Europe and China.
But broad weakness in commodities this morning may keep the resource sectors of the TSX from gaining much upward traction. While most commodities are only slightly weaker, Nymex natural gas prices are tumbling hard amid forecasts that weather in the U.S. will be milder than usual over the next two weeks. Natural gas prices are down about 5 per cent, after rallying sharply over the past couple of weeks amid the Arctic blast that put much of North America into a late-autumn deep freeze.
Overseas, Hong Kong and Chinese stocks jumped nearly 2 per cent overnight in their first reaction to China's cut in interest rates announced after markets closed in Asia on Friday. Reuters is quoting sources today as saying that the country's leadership and central bank were ready to cut interest rates again and loosen lending restrictions on concern falling prices could trigger a surge in debt defaults, business failures and job losses.
Gains this morning are more subdued in Europe, but stocks there are still seeing upbeat trading after better-than-expected data from Germany: the German Ifo business climate index for November came in at 104.7, above a consensus forecast of 103.0. Banking stocks are leading gains, as traders continue to bet that the European Central Bank will take more aggressive steps in stimulating its economy, perhaps through a full-fledged quantitative easing program.
There's little on the economic calendar today. This will be a shortened trading week for Wall Street, as U.S. Thanksgiving arrives on Thursday. That day may not be all that calm for the TSX, however, as OPEC officials will be meeting in Vienna - and there are widely divergent views on whether or not members will move to cut supply to help boost prices. There are reports this morning that Russia, in desperate need of higher oil prices, is making a last-ditch attempt to sway this week's OPEC meeting by suggesting Moscow could cut output if the group does the same.
Now, here's a closer look at what's happening this morning and what is still to come.
MARKETS:
Futures:
S&P 500 +0.29 per cent; Dow +0.26 per cent; Nasdaq +0.36 per cent; S&P/TSX +0.33 per cent
Equities:
Hong Kong's Hang Seng +1.95 per cent
Shanghai composite index +1.86 per cent
Japan's Nikkei Closed for holiday
London's FTSE 100 -0.06 per cent
Germany's DAX +0.69 per cent
France's CAC 40 +0.82 per cent
Stoxx 600 +0.22 per cent
Commodities:
WTI crude oil (Nymex Dec) -0.42 per cent at $76.19 (U.S.) a barrel
Natural gas (Nymex Jan) -4.78 per cent at $4.21 (U.S.)
Gold (Comex Feb) -0.23 per cent at $1,195.70 (U.S.) an ounce
Copper (Comex Mar) -0.05 per cent at $3.03 (U.S.) a pound
Currencies:
Canadian dollar at 88.94 (U.S.), down 0.0002
U.S. dollar index down 0.08 at 88.22
Bonds:
U.S. 10-year Treasury yield 2.33 per cent, up 0.01
STOCKS TO WATCH:
Intel shares are up almost 1 per cent in premarket trading after Barron's this weekend wrote that the stock could rise more than 30 per cent over the next two years.
Onex is buying Swiss food packaging company SIG Combibloc Group AG for as much as $4.66 billion. It also announced an investment in Advanced Integration Technology, a leading provider of automation and tooling, maintenance services and aircraft components to the aerospace industry. Terms of that deal were not disclosed.
Hudson's Bay outlined a $1.25 billion refinancing plan on Monday, in a move to reduce debt taken on when it acquired U.S. rival Saks last year.
ANALYST ACTIONS:
Raymond James lowered its outlook for gold and silver prices, resulting in reduced target prices for the precious metals stocks it follows. ATAC Resources, AuRico Gold, First Majestic Silver, Pan American Silver, and Probe Mines were concurrently downgraded to "market perform" from "outperform." Detour Gold and Fortuna Silver Mines were downgraded to "outperform" from "strong buy." Target prices declined on average 14 per cent for gold stocks and 20 per cent for silver equities.
RBC Dominion Securities downgraded Intact Financial to "sector perform" from "outperform" and maintained an $84 (Canadian) price target.
Canaccord Genuity upgraded Concordia Heathcare to "speculative buy" from "hold" and hikes its price target to $55 (U.S.) from $42.
RBC Dominion Securities raised its price target on Alimentation Couche-Tard to $44 (Canadian) from $37 and maintained a "sector perform" rating.
Goldman Sachs downgraded Costco Wholesale to "buy" from "conviction buy" but raised its price target to $148 (U.S.) from $145.
FBR Capital downgraded Tyco International to "market perform" from "outperform" and cut its price target to $42 (U.S.) from $44.
Raymond James upgraded Occidental Petroleum to "strong buy" from "outperform" with a price target of $105 (U.S.).
Raymond James downgraded Exxon Mobil to "market perform" from "outperform." Raymond James does not give price targets to market perform stocks.
Raymond James downgraded Chevron to "outperform" from "strong buy" with a price target of $140 (U.S.)
Raymond James upgraded Hess to "outperform" from "market perform" with a price target of $100 (U.S.)
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Barron's thinks Intel could rise 30 per cent.
The best times to release bad earnings.
The mistake most investors make is abandoning diversification right before they need it the most.
Price-to-book value ratios: A long-term winner with long periods of underperformance.
Cocoa group seeks to ease chocoholics' fears of a chocolypse.
When activist investors aim at strong companies.
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Darcy Keith