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 a lower start to North American trading - and once again, the energy sector is likely to feel its fair share of pain. The February U.S. crude contract has fallen to yet another 5 1/2-year low this morning of $50.65 (U.S.) per barrel, down more than 3 per cent, as signs continue to point to growing supply in several parts of the world.
Russia's oil output reportedly hit a post-Soviet high last year, while Iraq's oil exports in December were said to be at their highest since 1980. Meanwhile, currency markets are pressuring crude prices, which are priced in U.S. dollars, as the greenback hit a nine-year high against the euro today.
Natural gas prices, on the other hand, are moving briskly in the other direction this morning, rising more than 3 per cent as traders brace for increased demand this week amid the Arctic outbreak of weather in much of North American.
It's a quiet day on the economic data front, although the major automakers will be releasing their latest sales numbers through the morning. The major event of the week should come Friday, when the U.S. releases its nonfarm payrolls report for last month. Some clues on when the Federal Reserve may hike interest rates may also come Wednesday, as it releases minutes from its most recent policy meeting.
Asian markets were mixed overnight, with stocks in Shanghai seeing a strong rally. European equities are lower, with concerns about keeping the euro zone intact a major focus after a German newspaper this weekend cited unnamed government sources as saying lawmakers in that country now believe they are in a better position to cope with a Greece exit from the euro zone. Government officials later played down the report, however, insisting they expect Greece to stay with the shared currency.
Now, here's a closer look at what's going on and what is still to come.
MARKETS:
Futures:
S&P 500 -0.46 per cent; Dow -0.39 per cent; Nasdaq -0.33 per cent; S&P/TSX -0.42 per cent
Equities:
Hong Kong's Hang Seng -0.57 per cent
Shanghai composite index +3.60 per cent
Japan's Nikkei -0.24 per cent
London's FTSE 100 -0.96 per cent
Germany's DAX -1.27 per cent
France's CAC 40 -1.44 per cent
Stoxx 600 -0.98 per cent
Commodities:
WTI crude oil (Nymex Feb) -3.80 per cent at $50.69 (U.S.) a barrel
Natural gas (Nymex Mar) +3.23 at $3.10
Gold (Comex Feb) +0.24 per cent at $1,189.10 (U.S.) an ounce
Copper (Comex Mar) -1.83 per cent at $2.77 (U.S.) a pound
Currencies:
Canadian dollar at 84.82 (U.S.), up 0.0018
U.S. dollar index up 0.58 at 91.66
Bonds:
U.S. 10-year Treasury yield 2.12 per cent, up 0.002
ECONOMIC INDICATORS:
No major reports scheduled.
STOCKS TO WATCH:
Canadian and U.S. auto sales for December.
Energy Fuels said it has agreed to acquire Uranerz Energy in an all-stock deal. Based on the Jan. 2 closing prices, this deal offers a 37 per cent premium to Uranerz shareholders.
(Read more in Today's Small Cap Stocks to Watch)
ANALYST ACTIONS:
Goldman Sachs downgraded CGI Group to "neutral" from "buy" but with a price target of $41 (U.S.), up from $40.
Desjardins Securities upgraded Teck Resources to "buy" from "hold" with a price target of $26.50 (Canadian).
Raymond James upgraded Artis REIT to "outperform" from "market perform" with a price target of $16 (Canadian).
Jefferies upgraded Gap to "buy" from "hold" with a price target of $50 (U.S.). It also named the stock its best new idea for 2015.
Brookfield Renewable Energy Partners LP /CA was rated a new "overweight" at Barclays. The target price is $36 (U.S.).
Brookfield Infrastructure Partners LP was rated a new "equal- weight" at Barclays. The target price is $43 (U.S.).
Detour Gold was raised to "top pick" from "buy" at Cormark Securities. The 12-month target price is $18.75 (Canadian).
First Quantum Minerals was raised to "buy" from "market perform" at Cormark Securities. The 12- month target price is $22.50 (Canadian).
Copper Mountain Mining was raised to "buy" from "hold" at Desjardins Securities. The target price is $3.00 (Canadian).
Adriana Resources was downgraded to "hold" from "buy" at Desjardins Securities. The target price is 20 cents (Canadian).
Merck & Co was raised to "outperform" from "market pPerform" at Sanford Bernstein. The 12-month target price is $68 (U.S.).
Novartis AG was raised to "outperform" from "market perform" at Cowen. The 12-month target price is $105 (U.S.).
Starbucks was downgraded to "neutral" from "buy" at Janney Montgomery. The 12-month target price is $85 (U.S.).
L Brands was raised to "hold" from "underperform" at Jefferies. The target price is $85 (U.S.).
Intel was raised to "buy" from "neutral" at MKM Partners. The 12-month target price is $45 (U.S.).
Wells Fargo was downgraded to "neutral" from "outperform" at Robert Baird. The 12-month target price is $55 (U.S.).
Caterpillar was downgraded to "underweight" from "neutral" at JPMorgan. The 12-month target price is $80 (U.S.).
Carnival was raised to "outperform" from "market perform" at Raymond James. The 12-month target price is $54 (U.S.).
CF Industries Holdings was raised to "overweight" from "neutral" at Piper Jaffray. The 12-month target price is $327 (U.S.).
THIS MORNING'S TOP INVESTING READS ON THE WEB:
The year of dollar danger for the world.
How to clone the largest hedge fund in the world.
Equal-weight S&P 500 outperforming cap-weight S&P 500.
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Darcy Keith