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.
North American stock futures are nearly unchanged this morning after Asian markets eased modestly overnight. European stocks so far are seeing slight gains today, and major commodities are weaker amid renewed strength in the U.S. dollar.
It adds up to what will likely be a mixed opening later this morning, with BlackBerry Ltd. once again in focus one day after announcing a preliminary $4.7-billion (U.S.) bid by Fairfax Financial Holdings Ltd. to take the company private. Shares were up early this morning, but have entered negative territory as the opening bell approaches - down 0.6 per cent at last check. The stock closed up 1 per cent on the Nasdaq Monday at $8.82 (U.S.), below the $9 offering price, suggesting investors aren't all that confident the deal will get done.
Analysts are weighing in this morning on the deal, with at least two banks - CIBC World Markets and Scotiabank - believing a competing bid is possible. CIBC analyst Todd Coupland speculates that BlackBerry co-founder Mike Lazaridis could lead a consortium bid for BlackBerry.
For the broader market, the focus remains on U.S. debt-ceiling negotiations and the U.S. Federal Reserve's $85-billion-a-month bond buying program. Most believe a deal will eventually get done on the debt-ceiling impasse, but the uncertainty will dampen enthusiasm for risk assets such as stocks for now. Meanwhile, the Fed's decision last week to refrain from tapering its bond purchases may have initially buoyed markets, but uncertainty only seems to be growing on when it may finally take that action. At least one Fed official said the long-awaited tapering could begin this October, although the more common thinking is that it would have to wait until December or later.
In overseas markets, European stocks are finding some lift this morning from German business confidence data rising for a fifth straight month in September. The Ifo business-climate index rose to 107.7 from a revised figure of 107.6 in August, although that was a little below expectations of 108.0.
U.S. housing price and consumer confidence data should provide more direction for markets later this morning.
Now, here's a closer look at what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 +0.11 per cent; Dow +0.14 per cent; Nasdaq +0.31 per cent; S&P Toronto -0.08 per cent
Hong Kong's Hang Seng -0.82 per cent
Shanghai composite index -0.59 per cent
Japan's Nikkei -0.06 per cent
London's FTSE 100 +0.12 per cent
Germany's DAX +0.14 per cent
France's CAC 40 +0.50 per cent
Commodities:
WTI crude oil (Nymex Nov) -0.71 per cent at $102.85 (U.S.) a barrel
Gold (Comex Dec) -1.25 per cent at $1,310.40 (U.S.) an ounce
Copper (Comex Dec) -1.59 per cent at $3.25 (U.S.) a pound
Currencies:
Canadian dollar at 97.28 (U.S.), up 0.0003 from yesterday's North American close.
U.S. dollar index up 0.09 at 80.54
Bonds:
U.S. 10-year Treasury yield 2.69 per cent, down 0.01
ECONOMIC INDICATORS TO WATCH:
Canada releases retail sales in July rose 0.6 per cent, slightly stronger than the 0.5 per cent economists expected.
The U.S. July S&P/Case Shiller 20-city home price index rose 12.4 per cent, matching estimates. But the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking.
(10 a.m. ET) U.S. releases consumer confidence for September, forecast to fall to 80.0 from August's 81.5.
STOCKS TO WATCH:
BlackBerry Ltd. shares are down about 0.6 per cent in the premarket a day after announcing a $9 (U.S.) per share takeout deal by Fairfax Financial.
Sears Canada CEO Calvin McDonald has resigned and will be replaced by chief operating officer Douglas Campbell.
Applied Materials Inc. and Tokyo Electron Ltd. plan to merge in a $29-billion all-stock deal. Shares in Applied Materials are up 4.4 per cent in the premarket.
Lennar Corp., the first of the top 5 U.S. homebuilders to report quarterly profits, reported higher-than-expected earnings and revenues and said orders for new homes rose 14 per cent in the quarter. But shares are down 0.1 per cent in the premarket.
Carnival Corp. reported adjusted third-quarter earnings of $1.38 a share versus the $1.29 Street view. But shares are down 4 per cent in the premarket as the company warned higher fuel prices will cut into its full-year profits.
Other earnings today include KB Home.
ANALYST ACTIONS:
Citibank initiated coverage on Suncor Energy with a "neutral" rating and $40 (U.S.) price target.
Citibank upgraded Facebook Inc. to "buy" from "neutral" and raised its price target to $55 (U.S.) from $32.
Susquehanna upgraded Apple Inc. to "positive" from "neutral" and raised its price target to $625 (U.S.) from $440. Barclays raised its price target on Apple to $540 from $525 and maintained an "outperform" rating.
Raymond James downgraded Calfrac Well Services to "market perform" from "outperform" and cut its price target to $35 (Canadian) from $39.
Raymond James downgraed Canyon Services Group Inc. to "market perform" from "outperform" and cut its price target to $14 (Canadian) from $13.25.
RBC Dominion Securities initiated coverage on Brookfield Residential Properties Inc. with an "outperform" rating and $27 (U.S.) price target.
RBC Dominion Securities downgraded Equifax to "sector perform" from "outperform" and reiterated a $67 (U.S.) price target.
Desjardins Securities cut its price target on Gildan Activewear Inc. to $56 (Canadian) from $53 and maintained a "buy" rating.
Raymond James raised its price target on Methanex to $58 (U.S.) from $52 and reiterated an "outperform" rating.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
From a seasonality standpoint, there isn't a more reliable time of the year to have a market pullback than this week.
Last Wednesday's Federal Reserve announcement was leaked, according to a financial market analyst.
The possibility of a U.S. government shutdown is a good reason to buy U.S. government bonds.
Investment managers who time markets have no more success than a coin flip.
Nine things you don't need to be a rich investor.
The economist who predicted the financial crisis just sounded another alarm.
China has just bought 5 per cent of Ukraine.
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
Darcy Keith