Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
Optimism over a possible deal between Greek and European authorities has given equity futures a lift ahead of the open.
Green shoots may be starting to appear in Europe with French and Italian industrial production growth surprising to the upside in December, a signal that stimulative monetary policy and lower oil prices are starting to bear fruit. However, political uncertainties surrounding a possible exit of Greece from the euro zone continue to dominate headlines.
Greek newspaper Kathimerini is reporting that the new government plans to offer a revamped proposal at the upcoming Eurogroup summit. The ruling Syriza party is aiming to alter about 30 per cent of the required reforms from Greece's previous bailout plan, target a smaller budget surplus, reduce debt through a swap plan, and secure financing through the issuance of bonds, the collection in profits from Greek bonds held by the Eurosystem, and access to a loan tranche. The European Commission indicated that talks between the two sides are "intensive," but that a formal solution has yet to be reached. European equities caught a bid on hopes of a deal between Greece and the European authorities.
Political risk emanates primarily from Europe but has also reared its head in India, where an anti-corruption party popular with the working-class electorate scored an overwhelming victory in the Delhi state elections over Prime Minister Narendra Modi's BJP.
Elsewhere in Asia, Chinese producer prices retreated by more than economists expected while consumer prices registered a softer-than-anticipated increase. Meanwhile, a report from the International Energy Agency said that the decline in oil prices would only delay, but not derail, the U.S. shale boom. These two developments weighed on the price of oil overnight.
In the United States, the Job Openings and Labour Turnover Survey is projected to show that the number of vacancies expanded in December, reinforcing the momentum behind the nation's labour market recovery.
Details on upcoming earnings, market results and a preview of the day's key economic releases can be found below.
MARKETS:
Futures:
S&P 500 +0.58 per cent; Dow +0.55 per cent; Nasdaq +0.61 per cent
Equities:
Hong Kong's Hang Seng +0.03 per cent
Shanghai composite index +1.50 per cent
Japan's Nikkei -0.33 per cent
London's FTSE 100 -0.18 per cent
Germany's DAX +0.86 per cent
France's CAC 40 +1.19 per cent
Stoxx 600 +0.70 per cent
Commodities:
WTI crude oil (Nymex Mar) -0.96 per cent at $52.35 (U.S.) a barrel
Natural gas (Nymex Mar) +0.89 per cent at $2.62
Gold (Comex Apr) -0.35 per cent at $1,237.20 (U.S.) an ounce
Copper (Comex Mar) -1.49 per cent at $2.5420 (U.S.) a pound
Currencies:
Canadian dollar at 80.008 (U.S.), down 0.00012
U.S. dollar index up 0.313 at 94.762
Bonds:
U.S. 10-year Treasury yield 1.994 per cent, up 0.0165
ECONOMIC INDICATORS:
(9 a.m. ET) The NFIB reports is January small business economic trends survey, expected to be up to 101.0 from 100.4 in December.
(10 a.m.) The U.S. reports December wholesale inventories, forecast to rise 0.1 per cent, and also reports December's job openings and labour turnover survey, and the IBD/TIPP economic optimism index, expected to be 51.8.
STOCKS TO WATCH:
Starwood Hotels and Resorts Worldwide Inc. posted adjusted earnings per share that exceeded analysts estimates, announced plans to spin off its timeshare unit, and boosted its quarterly dividend and share repurchasing program.
Coca-Cola Co. recorded adjusted earnings per share of $0.44 in the fourth quarter, two cents above the consensus estimate.
Monster Worldwide Inc. reported a mixed set of quarterly results, coming in slightly shy on the top line but booking a marginal bottom-line beat. Management announced plans to cut 300 jobs, equivalent to roughly 7 per cent of its full-time staff.
IBM Corp. announced a partnership with SoftBank Telecom Corp. that will see it bring its Watson computing system to Japan.
Earnings expected: FirstService, Kinross Gold, Mediagrif, Talisman Energy, Acadian Timber, Genworth MI Canada, Mediagrif, A10 Networks Inc., Aecom, Akamai Tech Inc., Arch Capital, Astronics Corp., Bankrate Inc., Blue Nile Inc., Brookfield Residential Properties Inc., CDW Corp., Charles River Laboratories, Coca-Cola Co., Corcept Therapeutics, CVS Health Corp., Dean Foods, Douglas Emmett Inc., EMCORE Corp., FMC Tech Inc., Forward Air Corp, Genesee & Wyoming Inc., Genomic Health Inc., Genworth Financial, HCP Inc., Health Net Inc., ICL-Israel Chemicals Ltd., Jive Software Inc., Kforce Inc., KKR & Co. L.P., LifeLock Inc., Marketo Inc., Martin Marietta Materials Inc., Midcoast Energy Partners , Molson Coors Brewing Co., Monster Worldwide Inc., NCR Corp., NeoPhotonics Corp., Omnicom, Paycom Software Inc., PG&E Corp., Phibro Animal Health, Pioneer Natural Resources, ReachLocal Inc., RetailMeNot Inc., Reynolds American Inc., RPX Corp., Ruckus Wireless Inc., Sapient Corp., Sealed Air Corp., Seattle Genetics Inc., Services Corp. International, Spartan Motors Inc., Spirit Airlines Inc., Starwood Hotels & Resorts Worldwide, Trimble Navigation, UBS Group AG, USANA Health Sciences Inc., ViaSat Inc., Western Union Company., Wyndham Worldwide Corp.. Xoom Corp.
ANALYST ACTIONS:
Citigroup Inc. was raised to "buy" from "hold" at Deutsche Bank.
Transocean Ltd. was cut to "underperform" from "neutral" by Credit Suisse.