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Premarket: Look at RIM go Add to ...

Investors aren't holding back this morning in celebrating Research In Motion's rare earnings beat late Thursday, with the stock up about 15 per cent in premarket trading at $8.25 (U.S.).

That's a bit below the high of $8.60 reached earlier in the premarket and the high of $8.90 hit in the post market on Thursday.

Nevertheless, those who went short on RIM prior to its earnings release thinking the troubled BlackBerry maker's financials would never again beat expectations will no doubt be glad when this day is over.

The company, of course, is still far from being healthy. While better than expected, its loss of $235-million (U.S.) in the latest quarter was largely a result of cost-cutting and the share bounce largely represents diminished analyst expectations.

Some analysts are reconsidering their stance on RIM, however, in the wake of the results. National Bank Financial this morning upgraded RIM to "outperform" and raised its target to $12 (U.S.) from $8.

RIM's expected surge when North American trading begins will help out the S&P/TSX index, but much of the rest of the market isn't nearly as upbeat. U.S. stock futures are modestly lower this morning amid more worries about Europe's debt problems and the ability of recent quantitative easing measures to pull the global economy out of its slump.

Futures stayed in the red as U.S personal income and spending data were released at 0830 a.m. The figures came in largely as expected.

Now, here's the rundown of what else you need to know before the trading day gets underway:


Futures: Dow -0.4 per cent, S&P 500 -0.36 per cent, Nasdaq -0.28 per cent

Hong Kong's Hang Seng index +0.37 per cent

Shanghai Composite index +1.44 per cent

Japan’s Nikkei -0.89 per cent

London’s FTSE 100 +0.01 per cent

France’s CAC 40 -0.62 per cent

Germany’s DAX index -0.11 per cent

WTI (Nymex Nov) +0.02 per cent at $91.87 (U.S.) a barrel

Gold (Comex Dec) +0.03 per cent at $1,781.00 (U.S.) an ounce

Copper (Comex Dec) +0.16 per cent at $3.75 (U.S.) a pound

Canadian dollar down 0.0011, or 0.01 per cent, at $1.0187 (U.S.)


Statistics Canada reported on the gross domestic product in July, showing a 0.2 per cent increase from June. That slightly beat the Bloomberg forecast for a 0.1 per cent gain. 

The U.S. Commerce Department said U.S. personal income rose 0.1 per cent in August, while personal spending rose 0.5 per cent. Both were close to expectations.

(0945 a.m. ET) The Institute for Supply Management releases its September Chicago purchasing-managers survey. Economists expect little change from the previous month.

(0955 a.m. ET) Reuter's/University of Michigan's consumer sentiment index for September is released. Economists expect a reading of 79.0.

(1200 p.m. ET) Spain will present the results of stress tests on its lenders.

Nike shares are down 3 per cent in the premarket after the company reported its profit fell 12 per cent in the latest quarter as higher costs outweighed strong sales.

Walgreen reported a 55 per cent slide in profits in its latest quarter. Its shares are down 2.6 per cent in the premarket.


This is the first week since August 2 that the percentage of bearish investors outnumber the percentage of bullish investors.

Convertible bond funds are often marketed as providing equity market returns but with less risk. Sounds great, but there is a cost.

The 10 most-shorted U.S. stocks.

Five Canadian ETFs that should be more popular.

How to use ETFs to profit from a further rally in silver.

This often overlooked palladium ETF is another way to ride the quantitative easing rally in precious metals.

Many countries beyond the U.S. and Canada have adopted or proposed limits on high-speed trading.

A drunken broker sent oil to an eight-month high in 2009.


For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at#eyeonequities

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