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.
For investors looking for a day to kick off early from their trading screens and head to the great outdoors or to a sun-drenched patio, today may be as good a day as any this summer.
U.S. stock markets are closed for the Fourth of July holiday, and overseas markets aren't providing much inspiration to take the TSX in any fresh direction. Futures for the S&P/TSX composite index aren't showing a lot of conviction, but are up 0.1 per cent ahead of the opening bell.
Both European and Asian equities are mixed and relatively unchanged amid with little fresh news. Gold is up a bit but oil continues to track modestly lower on perceptions the violence in Iraq won't lead to any major oil supply disruptions.
The backdrop remains positive, however, after Thursday's surprisingly strong U.S. jobs report. MSCI's All World share index, which tracks 45 countries, hit a new three-year high overnight for the fourth time in a row. U.S. payrolls surged in June by 288,000 workers and unemployment fell two notches to 6.1 per cent.
The labour market appears to be mending at a faster pace than the Federal Reserve expected, and more strong job reports later this summer may prompt the Fed to raise its projections for its benchmark interest rate at the end of 2015 and 2016. Fed officials last month projected their target rate - which has been near zero since December 2008 - will be 1.13 per cent at the end of 2015 and 2.5 per cent a year later.
Federal funds futures contracts traded on the CME Group exchange are now placing odds of a rate hike in June 2015 at 57 per cent, up from 51 per cent prior to Thursday's jobs data. A month ago it was at 43 per cent.
All this may not derail the bull market, of course, given a rate hike would be a sign of confidence in a sustainable and relatively robust economic recovery. However, it may mean more volatile trading for markets, if not a correction.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 -0.10 per cent; Dow +0.05 per cent; Nasdaq -0.06 per cent; S&P/TSX +0.14 per cent
Hong Kong's Hang Seng +0.06 per cent
Shanghai composite index -0.20 per cent
Japan's Nikkei +0.58 per cent
London's FTSE 100 +0.01 per cent
Germany's DAX -0.09 per cent
France's CAC 40 -0.18 per cent
Commodities:
WTI crude oil (Nymex Aug) -0.22 per cent at $103.83 (U.S.) a barrel
Gold (Comex Aug) +0.10 per cent at $1,321.90 (U.S.) an ounce
Copper (Comex Sep) -0.29 per cent at $3.27 (U.S.) a pound
Currencies:
Canadian dollar at 94.04 (U.S.), up 0.0003
U.S. dollar index up 0.07 at 80.29
Bonds:
U.S. 10-year Treasury yield 2.64 per cent, up 0.01
ECONOMIC INDICATORS:
No major reports scheduled.
STOCKS TO WATCH:
Lassonde Industries is acquiring U.S. branded juice company Apple & Eve for $150-million (U.S.).
ANALYST ACTIONS:
CIBC World Markets raised its price target on Calfrac Well Services to $25 (Canadian) from $22.50 and maintained a "sector outperformer" rating.
THIS MORNING'S TOP INVESTING LINKS:
Pimco's Bill Gross is betting $200-million (U.S.) on low interest rates.
Inside Monsanto, America's third most-hated company.
Investing arguments are always about strategy, but most investors would be better off improving their own behavior.
Four misconceptions about Dow theory.
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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