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 are pointing to solid gains for North American markets as they open this morning, marking a promising start to 2015 despite no shortage of concerns about stretched valuations in U.S. equities and a global economy still looking wobbly. But crude oil prices have taken a dive just ahead of the open, hitting fresh 5 1/2-year lows.
Futures for the S&P 500 and TSX are up about 0.3 per cent. That suggests U.S. indexes will try to recoup at least some of their losses from Wednesday, when the Dow closed down 160 points and the S&P 500 lost 1 per cent. That said, sentiment for equities isn't all that robust this morning: European indexes are mostly lower, and light trading volumes may be exaggerating the moves this week.
Manufacturing data out of the U.S. shortly after markets open today will help shape the direction of the day's trading. The news on that front out of Europe earlier today did little to alleviate concerns that the continent's economy is stagnating: Markit's manufacturing purchasing manager's index for the euro zone came in at 50.6 in December, up from a 17-month low of 50.1 in November, but below market estimates of 50.8 and only marginally above the 50 level that signifies expansion.
Meanwhile, the euro this morning sunk to a 4 1/2-year low against the U.S. dollar after European Central Bank President Mario Draghi said the risk of the central bank falling short of its mandate on inflation targeting had risen compared to six months ago.
U.S. crude oil is down 1.9 per cent at $52.24 (U.S.) per barrel, with the February contract falling as low as $52.03 shortly past 7 a.m. (ET) - after trading at times positively overnight. The move lower appeared to be in response to fresh government data showing that oil supplies in Iraq and Russia surged to the highest level in decades in December. There's no established floor on oil prices as key OPEC countries hold firm in their resistance to cut output.
Now, here's a closer look at what's going on and what is still to come.
MARKETS:
Futures:
S&P 500 +0.33 per cent; Dow +0.37 per cent; Nasdaq +0.34 per cent; S&P/TSX +0.34 per cent
Equities:
Hong Kong's Hang Seng +1.07 per cent
Shanghai composite index Closed
Japan's Nikkei Closed
London's FTSE 100 -0.21 per cent
Germany's DAX -0.72 per cent
France's CAC 40 -0.39 per cent
Stoxx 600 -0.16 per cent
Commodities:
WTI crude oil (Nymex Feb) -1.67 per cent at $52.37 (U.S.) a barrel
Natural gas (Nymex Mar) +1.55 at $2.94
Gold (Comex Feb) -0.19 per cent at $1,181.80 (U.S.) an ounce
Copper (Comex Mar) -0.11 per cent at $2.82 (U.S.) a pound
Currencies:
Canadian dollar at 85.70 (U.S.), down 0.0045
U.S. dollar index up 0.46 at 90.74
Bonds:
U.S. 10-year Treasury yield 2.21 per cent, up 0.03
ECONOMIC INDICATORS:
(945 a.m ET) U.S. Markit Manufacturing PMI for December.
(10 a.m. ET) U.S. Manufacturing ISM PMI for December. Consensus is for a reading of 57.5.
(10 a.m ET) U.S. construction spending for November. Consensus is for a 0.4 per cent rise.
STOCKS TO WATCH:
Major automakers tentatively scheduled to release auto sales for December.
Activist investor Jana Partners has dumped its shares in Civeo, which earlier this week announced cuts in the Canadian oilpatch where it provides accommodation services. Civeo shares are up 0.5 per cent, however, in the premarket.
General Motors shares are up 0.4 per cent in premarket trading after the company announced three new recalls of sport-utility vehicles and trucks on Thursday and announcing late Wednesday an $800-million charge for the fourth quarter after redeeming some outstanding shares.
Shares in Linn Energy LLC are down 6 per cent after it announced a 2015 budget that cuts oil and natural gas capital spending roughly in half to $730-million.
ANALYST ACTIONS:
Canaccord Genuity upgraded Bed Bath & Beyond to "buy" from "hold" and raised its price target to $91 (U.S.) from $66.
Northland Securities downgraded Sierra Wireless to "market perform" from "outperform" with a price target of $40 (U.S.).
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Why oil will probably stay cheap in 2015.
Investors are pouring more money than ever before into U.S.-based equity funds.
Coffee and four other surprisingly great investments of 2014.
Here's the brilliant trading advice 50-year NYSE veteran Art Cashin has for investors.
How investment advice is like medical advice.
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Darcy Keith