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.
European stock markets are rallying, and U.S. stock futures have shifted solidly into the green, after the European Central Bank cut its benchmark interest rate this morning - a largely unexpected move.
There had been some speculation that the ECB may cut interest rates - or make some kind of liquidity provision - given recent data showing very little inflation. But most economists thought the bank would at least wait until December before cutting interest rates.
The cut, which drops the ECB's benchmark rate to 0.25 per cent from 0.5 per cent, came as inflation in the 17-country euro zone dropped to a four-year low of 0.7 per cent in October and the region's growth rate stalled.
ECB President Mario Draghi followed up with comments during a news conference, in which he said the central bank would continue to give banks as much liquidity as they need until the middle of 2015.
The Bank of England this morning announced no change in its interest rates or its current asset purchase program.
Also grabbing headlines this morning is a surprise to the upside on U.S. gross domestic product for the third quarter. In this first reading of GDP during that period, the economy grew at an annulized clip of 2.8 per cent - its fastest pace in a year and far surpassing economists' estimates of 2.0 per cent. Stock futures ticked up slightly with that news, even though the data suggests the Federal Reserve could taper its stimulus measures sooner rather than later.
Another key clue on the state of the U.S. economy will arrive Friday, with the release of the U.S. non-farm payrolls report.
On the corporate front, Twitter will be grabbing centre stage with its $1.8-billion initial public offering. It was priced at $26 (U.S.) late Wednesday, $1 more than the expected range.
There are also many big Canadian companies out with earnings today and Canadian Natural Resources announced a big hike in its dividend. See our Stocks to Watch section below for more details.
The third-quarter earnings season is just about wrapped up in the U.S. now, with 431 companies representing 90.5 per cent of the S&P 500's market cap already reporting. All of the 10 sectors have beaten their earnings per share expectations, with an earnings surprise rate overall of 3.8 per cent, according to RBC Dominion Securities.
Now, here's a closer look at what's going on this morning and what to look for later today.
MARKETS:
Equities:
Futures: S&P 500 +0.37 per cent; Dow +0.47 per cent; Nasdaq +0.28 per cent; S&P Toronto +0.39 per cent
Hong Kong's Hang Seng -0.68 per cent
Shanghai composite index -0.50 per cent
Japan's Nikkei -0.76 per cent
London's FTSE 100 +0.39 per cent
Germany's DAX +1.30 per cent
France's CAC 40 +1.35 per cent
Commodities:
WTI crude oil (Nymex Dec) +0.22 per cent at $95.01 (U.S.) a barrel
Gold (Comex Dec) +0.46 per cent at $1,323.80 (U.S.) an ounce
Copper (Comex Dec) +0.43 per cent at $3.25 (U.S.) a pound
Currencies:
Canadian dollar at 95.88 (U.S.), vs. 95.99 at Wednesday's North American close.
U.S. dollar index up 0.007 at 80.49
Bonds:
U.S. 10-year Treasury yield 2.62 per cent, down 0.02
ECONOMIC INDICATORS TO WATCH:
The first reading of U.S. third-quarter GDP showed annualized growth of 2.8 per cent, exceeding the consensus view of growth of 2.0 per cent.
U.S. initial jobless claims last week fell to 336,000 from the previous week's 340,000, very close to market expectations.
STOCKS TO WATCH:
Twitter shares begin trading on the New York Stock Exchange at 930 a.m. (ET). They were priced at $26 (U.S.) late Wednesday, $1 more than the expected range. Many analysts have one-year targets above that price.
BCE reported adjusted earnings per share of 75 cents, missing the Street view of 77 cents, but the company reaffirmed all its 2013 financial targets.
Manulife Financial reported third-quarter profit of 54 cents a share, compared with a loss of 13 cents a year ago. Its core earnings beat the Street view by 1 penny.
Canadian Natural Resources hiked its dividend by 60 per cent as it said it expects cash flow to rise 14 per cent in 2014.
Quebecor reported adjusted third-quarter profit of 51 cents a share, up from 39 cents a year ago. Both its EPS and revenues topped Street expectations.
Tim Hortons reported adjusted third-quarter EPS of 77 cents a share, in line with Street estimates. Its same-store sales were up 1.7 per cent in Canada and 3 per cent in the U.S.
TMX Group reported adjusted profit of 75 (Canadian) cents a share, beating the 74 cents Street view. But revenues of $165.3-million came in below the Street estimate of $175.6-million.
Canadian Tire raised its annual dividend by 25 per cent to $1.75 a share and reported an 15.7 per cent jump in adjusted EPS, which beat Street expectations.
Home Capital Group reported adjusted earnings per share of $1.90 versus the Street estimate of $1.83.
Wendy's shares are falling in the premarket after reporting adjusted earnings per share of 8 cents from 2 cents a year ago. Analysts had expected 6 cents. The stock was last down 8 per cent.
Whole Foods Market shares in the U.S. premarket are down 9 per cent after the company late Wednesday reported fiscal fourth-quarter revenue short of analysts' forecasts and cut its outlook.
Qualcomm shares are down nearly 5 per cent in the premarket after the company late Wednesday issued a more cautious outlook for the current period and new fiscal year, even while reporting a strong jump in earnings.
Other earnings today include: CI Financial, Dorel, Gluskin Sheff, Great-West Lifeco, High Liner Foods, Inter Pipeline, Manitoba Telecom, Pengrowth Energy, Saputo.
ANALYST ACTIONS:
RBC initiated coverage on Twitter with a $33 (U.S.) price target and an "outperform" rating. Cantor Fitzgerald started coverage with a "buy" rating and $32 price target. Evercore Partners started coverage with an "overweight" rating and $43 price target.
Several brokers have downgraded Iamgold, including HSBC, which lowered its rating to "neutral" from "overweight" and cut its price target to $5.30 from $6.20, and Barclays, which lowered its rating to "underweight" from "equalweight" and cut its price target to $5 from $7. TD Securities cut its rating to "hold" from "buy" and slashed its price target to $6 from $7.50. Canaccord Genuity cut its price target to $6.
RBC Dominion Securities downgraded Talisman Energy to "sector perform" from "outperform" and cut its target price to $13 (U.S.) from $14. It cited the tepid progress on its asset sales.
Raymond James upgraded North American Energy Partners to "outperform" from "market perform" and hiked its target to $7.50 (Canadian) from $5.50.
BMO Nesbitt Burns upgraded Agrium to "outperform" from "market perform with a price target of $100.
Desjardins Securities hiked its target on Home Capital Group to $93.50 (Canadian) from $76.50 and maintained a "top pick" rating. RBC was less enthusiastic, maintaining a "sector perform" rating and nudging up its price target to $80 from $78.
Desjardins Securities raised its price target on Industrial Alliance Insurance and Financial Services to $52 (Canadian) from $44.50 and maintained a "buy" rating.
Canaccord downgraded Colossus Minerals to "hold" from "speculate buy" and cut its price target to 60 cents (Canadian) from $1.60.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Why so many smart investors are so excited about Twitter.
What investors should do as the market continues its bull run.
There are some good reasons not to be investing in dividend stocks right now.
A new U.S.-listed ETF that provides direct access to China A-class shares has been launched and investors are enthusiastic.
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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