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.
Another burst of earnings reports today is making for active trade this morning, with the overall direction of markets decidedly to the downside amid a resurgence of worries about the arrival of higher interest rates and the still precarious financial state of Europe.
S&P 500 futures are down about 0.7 per cent. Futures for the S&P/TSX index are down about 0.3 per cent.
The Stoxx 600 broad index of European equities is down 0.7 per cent, with investors there rattled by news that Portugal's Banco Espirito Santo SA reported a record second-quarter loss, sending its shares down by about 25 per cent. The bank and its parent company, Espirito Santo International, were the source of much worry earlier this summer amid reports of financial irregularities in its accounts. European markets were also unnerved by Adidas AG lowering its profit forecast, as the sportswear company warned the conflict between separatists and the Ukrainian government may reduce spending on its products in Russia and neighbouring countries. Its shares plunged 12 per cent. Meanwhile, in another part of the world, Argentina failed to prevent a default of its debt Wednesday night, setting the stage for a bitter day of trading there.
Meanwhile, equity investors are reacting negatively this morning after fully absorbing Wednesday's surprisingly strong U.S. GDP report. Gross domestic product for the second quarter - which is still subject to future revisions - expanded by 4 per cent, suggesting the Fed could hike interest rates sooner than many expect. Fed Chair Janet Yellen downplayed those risks on Wednesday in announcing a further reduction in the Fed's monthly bond purchases. But bond yields have sharply moved upward since the GDP report, limiting the appetite for equities while bringing into focus risks that the first hike is less than a year away.
We detail much more below, including how many of today's key earnings reports turned out.
MARKETS:
Equities:
Futures: S&P 500 -0.70 per cent; Dow -0.67 per cent; Nasdaq -0.73 per cent; S&P/TSX -0.32 per cent
Hong Kong's Hang Seng +0.10 per cent
Shanghai composite index +0.95 per cent
Japan's Nikkei -0.16 per cent
London's FTSE 100 -0.15 per cent
Germany's DAX -0.91 per cent
France's CAC 40 -0.73 per cent
Stoxx 600 -0.72 per cent
Commodities:
WTI crude oil (Nymex Sep) -0.73 per cent at $99.54 (U.S.) a barrel
Gold (Comex Dec) -0.02 per cent at $1,296.60 (U.S.) an ounce
Copper (Comex Sep) +0.03 per cent at $3.24 (U.S.) a pound
Currencies:
Canadian dollar at 91.64 (U.S.), down 0.0007
U.S. dollar index up 0.05 at 81.48
Bonds:
U.S. 10-year Treasury yield 2.55 per cent, down 0.008
ECONOMIC INDICATORS:
Canadian May GDP rose 0.4 per cent, in line with expectations, and marking a rise from April's gain of 0.1 per cent.
U.S. initial jobless claims for last week came in at 302,000, a tad above market expectations for 295,000, and above the previous week's 284,000.
STOCKS TO WATCH:
Shaw Communications announced it plans to acquire ViaWest, a provider of data centre infrastructure, in $1.2-billion deal.
Target Corp appointed PepsiCo executive Brian Cornell as CEO as it tries to regain customer confidence after a devastating data breach last holiday season.
Open Text is up 12 per cent in the premarket after surprisingly strong earnings. Quarterly revenues of $494-million beat the consensus of $478-million while EPS of $1.05 beat the Street view of 94 cents.
Maple Leaf reported a Q2 adjusted loss 13 cents vs. estimated loss of 12 cents.
Cameco reported adjusted EPS 20 cents vs. 16 cents Street view.
Valeant Pharmaceuticals cut its profit forecast for this year as it reported quarterly adjusted EPS of $1.91, a penny above Street views.
Quebecor reported adjusted EPS of 54 cents (Canadian) vs. consensus of 47 cents.
Suncor reported operating earnings of 77 cents a share, missing the Street estimate of 97 cents, as the company announced $1.2-billion in charges related to its holdings in the oil sands and in Libya. It also announced a rise in its dividend.
Goldcorp reported Q2 adjusted EPS 20 cents vs. the estimated 14 cents.
Barrick Gold reported adjusted profit of 14 cents (U.S.), 2 cents below analyst estimates. It also said the average cost of producing an ounce of gold in 2014 will be lower than previously estimated.
Agnico Eagle reported Q2 EPS of 28 cents (U.S.), matching the Street consensus.
Bombardier reported adjusted profits of 10 cents a share, a penny above Street estimates. Revenues were also slightly ahead of Street views.
AltaGas reported Q2 EPS of 22 cents vs. the consensus of 21 cents.
Hudbay Minerals announced an EPS of zero, whereas analysts were expecting a profit of 3 cents.
Kellogg reported Q2 comparable EPS of $1.02 (U.S.) vs. the expected $1.02.
Exxon Mobil reported Q2 EPS of $2.05 vs. the estimated $1.86.
ConocoPhillips reported Q2 adjusted EPS of $1.61 vs. the expected $1.61.
Marathon Petroleum reported Q2 EPS of $2.95 vs. the expected $2.20.
Colgate-Palmolive reported Q2 adjusted EPS of 73 cents, matching Street expectations.
MasterCard reported Q2 EPS of 80 cents vs. estimates for 77 cents.
Time Warner Cable reported Q2 adjusted EPS of $1.89 (U.S.) vs. the expected $1.90.
Other earnings today include: Alamos Gold, Baytex Energy, Canadian Oil Sands, CCL Industries, Eldorado Gold, Fairfax Financial, Gildan Activewear, HudBay Minerals, Imperial Oil, Industrial Alliance, Interfor, Lake Shore Gold, Manitoba Telecom, New Gold, Nevsun Resources, RioCan REIT, Sierra Wireless, Tembec, TransCanada, Trimac, Alcatel-Lucent, Ambev, Anheuser-Busch, Apache, Ashland, AstraZeneca, Automatic Data Processing, Avon Products, Bill Barrett, Cigna, CME Group, Cott, Directv, Discovery Communications, Embraer, Exelon, Expedia, First Solar, Fluor, Hecla Mining, Host Hotels & Resorts, Hyatt Hotels, Invesco, KBR, L-3 Communications, LinkedIn, Mercer International, Mosaic, Occidental Petroleum, Resolute Forecast Products, Royal Dutch Shell, Skullcandy, Stillwater Mining, T-Mobile, Tesla Motors, Vale, Wynn Resorts, Xencor.
ANALYST ACTIONS:
Canaccord Genuity downgrades Thomson Reuters to "hold" from "buy" and kept a $38 (U.S.) price target.
Desjardins Securities downgraded Agnico Eagle Mines to "hold" from "buy" and kept a $46 (Canadian) price target. BMO Nesbitt Burns also downgraded the stock, to "market perform" from "outperform" and maintained a $45 (U.S.) price target.
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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