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 seeing modest gains this morning, raising hopes that the TSX's winning streak will stay intact and score its 13th straight session of gains when the week draws to an end later today. Both Dow and TSX futures are up in the 0.2 per cent to 0.3 per cent range, and it's plausible that the S&P 500 could take a run at its all-time high of 1,850.84.
So far, markets are largely still trading positively off of better-than-expected data Thursday that showed U.S. manufacturing rising to its highest level in almost four years. Overseas markets were mostly in the green overnight, led by a 2.88 per cent rally in Japan, where traders participated in some bargain hunting amid a weaker yen.
The U.S. will be releasing existing home sales data for January after markets open this morning, but it's likely investors will treat the figures with a grain of salt, given the severe winter weather conditions during the month.
In Canada, inflation and retail sales data were released this morning. Inflation rose more than expected, and the loonie came off its morning lows on the news, but is still below 90 cents (U.S.) after it breached that level overnight. Higher inflation raises the prospect of an interest rate hike in the future by the Bank of Canada, which would be supportive of the currency.
One interesting market to keep an eye on: natural gas. Forecasters are calling for another brutal cold snap to hit much of the North American population next week, and futures for the commodity are up a further 1 per cent this morning. Natural gas has been rallying sharply this winter, given cold weather spurs heating demand, but many speculate the move is temporary and the commodity could tumble once spring finally arrives.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.19 per cent; Dow +0.21 per cent; Nasdaq +0.16; S&P Toronto +0.27 per cent
Hong Kong's Hang Seng +0.78 per cent
Shanghai composite index -1.16 per cent
Japan's Nikkei +2.88 per cent
London's FTSE 100 +0.23 per cent
Germany's DAX +0.12 per cent
France's CAC 40 +0.33 per cent
Commodities:
WTI crude oil (Nymex Apr) -0.30 per cent at $102.44 (U.S.) a barrel
Gold (Comex Apr) +0.37 per cent at $1,321.80 (U.S.) an ounce
Copper (Comex May) -0.51 per cent at $3.24 (U.S.) a pound
Currencies:
Canadian dollar at 89.70 (U.S.), vs. 90.10 at Thursday's North American close.
U.S. dollar index up 0.09 at 80.38
Bonds:
U.S. 10-year Treasury yield 2.76 per cent, up 0.007
ECONOMIC INDICATORS:
Canada's consumer price index for January rose 0.3 per cent from December, ahead of the 0.1 per cent rise expected by economists and rebounding from the previous month's dip of 0.2 per cent. Annual inflation rose to 1.5 per cent, with the core rate up to 1.4 per cent.
Canadian retail sales for December fell 1.8 per cent from November, a steeper drop than the 0.4 per cent decline expected by economists. In the previous month, they rose 0.6 per cent.
(10 a.m. ET) U.S. releases existing home sales for January. They are forecast to decline to an annual rate of 4.65 million, from December's 4.87 million.
STOCKS TO WATCH:
Thompson Creek Metals had an unexpectedly big loss in the fourth quarter, with an adjusted loss of 17 cents per share, versus Street estimates for a 3 cents loss.
Agrium late Thursday reported a big drop in fourth-quarter net earnings but still beat Street expectations by 2 cents per share. Revenues were below analysts' forecasts, however.
Eldorado Gold reported fourth-quarter adjusted EPS of 1 cent versus the Street estimate of 5 cents.
Groupon shares are down about 14 per cent in the premarket after it provided a disappointing first quarter earnings outlook.
Priceline shares are up about 2 per cent in the premarket after its adjusted quarterly profit beat expectations.
Hewlett-Packard shares are up about 1 per cent in the premarket after its fiscal first quarter results beat Wall Street estimates.
Other earnings today include: Boise Cascade; Enerplus; and Onex.
ANALYST ACTIONS:
Canaccord downgraded TransAlta to "hold" from "buy" and cut its target to $14 (Canadiain) from $18, saying its "dividend and credibility" have both been cut. CIBC World Markets downgraded its rating to "sector underperform" and TD Securities downgraded its rating to "hold" from "buy."
Raymond James upgraded Tim Hortons to "outperform" from "market perform" and kept a $66 (Canadian) price target.
Raymond James upgraded Russel Metals to "outperform" from "market perform" and hiked its price target to $34 (Canadian) from $26
Raymond James hiked its price target on North American Energy Partners to $9 (Canadian) from $7.50 and kept an "outperform" rating.
TD Securities upgraded Alamos Gold to "buy" from "hold" with a price target of $14 (Canadian), saying its significant underperformance means a buying opportunity.
Desjardins Securities downgraded Lundin Mining to "hold" from "buy" on share price appreciation and kept a $6 (Canadian) target.
TD Securities upgraded Pan American Silver to "buy" from "hold" and raised its price target to $19 (U.S.) from $14.
BMO Nesbitt Burns downgraded Capstone Mining to "market perform" from "outperform" but maintained a $3.50 (Canadian) price target.
Stifel Nicolaus downgraded Wal-Mart Stores to "hold" from "buy" and removed its prior price target of $83 (U.S.).
Evercore Partners cut its price target on Groupon to $8 (U.S.) from $10 and reiterated an "equal weight" rating.
Susquehanna raised its price target on Priceline to $1,500 (U.S.) from $1,350 and maintained a "positive" rating. FBR Capital raised its target to $1,500 from $1,300 and reiterated an "outperform" rating. Evercore Partners raised its price target to $1,480 from $1,350 and reiterated an "overweight" rating.
BMO Nesbitt Burns cut its price target on Goodrich Petroleum to $20 (U.S.) from $30 and maintained an "outperform" rating.
THIS MORNING'S TOP INVESTING LINKS:
The true cost of foreign withholding taxes for Canadians.
Why natural gas prices could be setting up for a big plunge.
Bullish sentiment among individual investors is on the rebound.
Seven things you need as a trader.
John Paulson had a very good 2013.
The Nasdaq could be getting frothy.
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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