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 higher open in North American markets this morning, getting some encouragement from upbeat Chinese manufacturing numbers overnight and the calming influence of knowing any Federal Reserve bond tapering isn't likely to happen this year.
This is a big day for both Canadian and U.S. corporate earnings. Some 47 stocks within the S&P 500 are reporting results, along with several of the largest Canadian corporations including Potash Corp. and Rogers Communications. Check out our Stocks to Watch section below for highlights.
The tally so far for the third quarter is holding pretty steady for S&P 500 stocks, with 76 per cent of earnings so far beating analysts' third-quarter expectations, with 52 per cent beating sales estimates, according to Bloomberg estimates.
The latest manufacturing figures are being released across the globe today, and China's results were particularly notable given recent mixed signals about the resurgence in its economic growth rate. The HSBC flash reading of October's Purchasing Managers' Index there rose to a seven-month high of 50.9, compared to a final reading of 50.2 in September.
An equivalent manufacturing reading in Europe was a disappointment, however. The index for the euro zone fell to 51.5 in October, from a two-year high of 52.2 in September - which was worse than forecast. The reading for the U.S. will be released just prior to market open.
Now, here's more on what's going on this morning and a closer look at what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.40 per cent; Dow +0.40 per cent; Nasdaq +0.40 per cent; S&P Toronto +0.22 per cent
Hong Kong's Hang Seng -0.71 per cent
Shanghai composite index -0.88 per cent
Japan's Nikkei +0.42 per cent
London's FTSE 100 +0.46 per cent
Germany's DAX +0.65 per cent
France's CAC 40 +0.20 per cent
Commodities:
WTI crude oil (Nymex Dec) +0.40 per cent at $97.27 (U.S.) a barrel
Gold (Comex Dec) +0.43 per cent at $1,340.00 (U.S.) an ounce
Copper (Comex Dec) -0.05 per cent at $3.27 (U.S.) a pound
Currencies:
Canadian dollar at 96.16 (U.S.), down 0.0012 from Wednesday's North American close.
U.S. dollar index down 0.09 at 79.16
Bonds:
U.S. 10-year Treasury yield 2.50 per cent, down 0.005
ECONOMIC INDICATORS TO WATCH:
The U.S. trade gap rose by 0.4 per cent to $38.8-billion, a little less than economists' forecasts for $39.4-billion. Exports fell 0.1 per cent in August from July while imports to the U.S. were essentially unchanged.
U.S. jobless claims fell 12,000 last week to 350,000, still higher though than the 340,000 Street consensus. The previous week was revised higher to 362,000 from 358,000.
(858 a.m. ET) U.S. releases the Market PMI manufacturing index for October, forecast to rise to 52.7 from 52.8 in September.
STOCKS TO WATCH:
Potash Corp. shares are down 1.4 per cent in the premarket after reporting third-quarter EPS of 41 cents - down from 74 cents a year ago - and cutting its margin forecast for 2013.
Rogers Communications reported adjusted EPS of 97 cents versus the 96 cents estimate, but operating revenue of $3.22-billion fell short of the $3.25-billion estimate.
Goldcorp reported third-quarter adjusted profit of 23 cents versus the Street estimate of 20 cents.
Teck Resources reported a 41 per cent drop in quarterly adjusted profit.
Cenovus Energy reported a third-quarter operating profit of 41 cents per share, down from 57 cents a year earlier.
Ford reported adjusted third-quarter EPS of 45 cents versus the estimate of 38 cents and it raised its 2013 profit forecast. Shares are up 3.2 per cent in the premarket.
Shaw Communications reported fourth-quarter EPS of 24 cents vs. the 33 cents Street estimate.
Domtar reported adjusted third-quarter EPS of $1.25 a share versus $1.87 a year ago.
Colgate-Palmolive reported third-quarter EPS of 70 cents, up from 68 cents a year earlier.
Agnico Eagle Mines late Wednesday reported third-quarter earnings of 27 cents a share, down from 62 cents a year earlier.
3M reported third-quarter EPS of $1.78 versus the Street estimate of $1.75. It also narrowed its 2013 profit forecast.
Other earnings today include: Corus Entertainment, Domtar, Goldcorp, Husky Energy, IMAX, Postmedia Network, Shaw Communications, Raytheon, Hershey, Xerox, Janus Capital Group, Franklin Resources, Dunkin' Brands Group, USG, Coca-Cola Enterprises, Revlon, Starwood Hotels, Sirius XM Radio, Microsoft, NCR, Chubb, Zynga.
Activist investor Carl Icahn said in a tweet that he sent a letter to Apple CEO Tim Cook and more details will be disclosed later today. It's likely the letter will push for a share buyback, something he has been vocal about in recent days.
Canada Bread said it will sell its fresh pasta business to Ebro Foods for $120-million.
ANALYST ACTIONS:
RBC Dominion Securities upgraded Canadian Pacific Railway to "sector perform" from "underperform" and raised its price target to $133 (Canadian) from $116, while Desjardins Securities upgraded it to "buy" from "hold" and raised its price target to $162 from $123. Raymond James hiked its price target to $160 (Canadian) from $145 and maintained an "outperform" rating. Canaccord Genuity boosted its target to $146 from $131 and maintained a "hold" rating.
JPMorgan downgraded Caterpillar to "neutral" from "overweight" and cut its price target to $90 (U.S.) from $105. Raymond James downgraded the company to "market perform" from "outperform" and cut its target to $89 from $93.75.
Desjardins Securities upgraded Agnico Eagle Mines to "buy" from "hold," with a $35 (Canadian) price target.
Cantor Fitzgerald cut its target on WiLan to $4.80 (U.S.) from $6.
M Partners boosted its target on Home Capital Group to $85 from $76 and maintained a "buy" rating.
Citigroup upgraded Chesapeake Energy to "buy" from "neutral" and raised its target to $35 (U.S.) from $27.
Raymond James downgraded Essential Energy Services to "market perform" from "outperform: and raised its target to $3.20 from $3.
Raymond James boosted its price target on Canam Group to $15 from $12 and maintained a "strong buy" rating. RBC Dominion Securities upgraded its rating on the stock to "outperform" from "sector perform" and raised its price target to $13 from $11.
Canaccord Genuity boosted its target on Boeing to $150 (U.S.) from $140.
Canaccord Genuity initiated coverage on Kinross Gold with a "hold" rating and $5.75 (Canadian) price target. It also initiated coverage on Iamgold with a "buy" rating and $6.50 (Canadian) price target and on Silver Wheaton with a "buy" rating and $31 (Canadian) price target.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Gold actually does grow on trees in Australia.
Simple math suggests the bull market can't last another five years.
Crude oil, U.S. energy stocks and the U.S. dollar are oddly out of synch.
Warren Buffett explains why he didn't buy the Washington Post.
Several new U.S. sector ETFs launch today.
There's a new benchmark for beta managers.
-----
For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
Darcy Keith