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.
Markets are off to a rather subdued start today, with North American stock futures slightly higher and overseas markets mixed and holding close to unchanged.
The S&P 500's close above 2,000 Tuesday for the first time may have provided a bit of a psychological boost to market sentiment, but it has done little to alleviate ongoing worries that stocks are setting up for a significant pullback at some point - especially ahead of what will likely be the Federal Reserve's first boost to interest rates next year since the financial crisis.
More than $1-trillion (U.S.) has been added to the value of U.S. equities since a two-month low was reached on Aug. 7, according to a Bloomberg tally. For now, corporate profit growth appears to be robust enough to support valuations. The second-quarter earnings season, which is nearly all wrapped up, saw 76 per cent of S&P 500 companies beating analysts' estimates for profit and 65 per cent exceeding sales projections.
In Canada, the financial sector will continue to be in focus. Despite some earnings beats among the big banks over the last few days, the sector has been pulling back this week on the TSX, possibly on profit taking after the banks' strong run this year. Some suggest the dip could be offering a buying opportunity. National Bank reported its results this morning, easily beating Street forecasts for profit.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Equities:
Futures: S&P 500 +0.04 per cent; Dow +0.08 per cent; Nasdaq +0.06 per cent; S&P/TSX +0.01 per cent
Hong Kong's Hang Seng -0.62 per cent
Shanghai composite index +0.09 per cent
Japan's Nikkei +0.09 per cent
London's FTSE 100 +0.06 per cent
Germany's DAX -0.14 per cent
France's CAC 40 -0.15 per cent
Stoxx 600 +0.01 per cent
Commodities:
WTI crude oil (Nymex Oct) +0.29 per cent at $94.13 (U.S.) a barrel
Gold (Comex Dec) +0.11 per cent at $1,286.60 (U.S.) an ounce
Copper (Comex Dec) -0.11 per cent at $3.21 (U.S.) a pound
Currencies:
Canadian dollar at 91.73 (U.S.), up 0.0045
U.S. dollar index down 0.10 at 82.55
Bonds:
U.S. 10-year Treasury yield 2.38 per cent, down 0.02
ECONOMIC INDICATORS:
No major economic reports scheduled.
STOCKS TO WATCH:
Uranium producer Cameco announced just prior to market open that it will shut two Saskatchewan mills after strike notice was served by the United Steelworkers union.
Barrick Gold Corp. is eliminating its entire corporate development team and more cuts are in the works as the world's top gold miner looks to trim costs, Reuters is quoting sources as saying.
Spanish energy company Repsol SA's talks to buy Canadian producer Talisman Energy are in difficulty, the Wall Street Journal is quoting sources as saying, with Talisman's North Sea assets the stumbling block. Shares in Talisman are down 3 per cent in U.S. premarket trading.
Allergan said that it has scheduled a special shareholders meeting for Dec. 18, when activist investor Bill Ackman, who supports a hostile bid for the company by Valeant Pharmaceuticals, will attempt to oust most of its board.
National Bank reported Q2 adjusted EPS of $1.20 (Canadian) vs. the estimated $1.11.
Tiffany reported Q2 EPS of 96 cents (U.S.) vs. the Street estimated 85 cents. It also raised its full-year profit outlook.
Smith & Wesson shares are down 11 per cent in the premarket after late Tuesday releasing earnings that saw the gun maker cut its outlook for its fiscal second quarter. It cited lower demand for rifles and shotguns.
Other earnings today include Express and Michaels.
ANALYST ACTIONS:
Janney Capital downgraded Facebook to "neutral" from "buy" with a price target of $82.50 (U.S.).
Canaccord Genuity raised its price target on Bank of Montreal to $85 (Canadian) from $83 and maintained a "hold" rating. Desjardins Securities raised its target to $84 from $81 and maintained a "hold" rating. BMO Nesbitt Burns raised its target to $84 (Canadian) from $78 and maintained a "market perform" rating.
Canaccord Genuity raised its price target on Tim Hortons to $91 (Canadian) from $86 and maintained a "hold" rating. Raymond James downgraded its rating to "market perform" from "outperform" and raised its price target to $92.50 from $72. Desjardins raised its target to $89 from $85 and maintained a "hold" rating. BMO Nesbitt Burns downgraded its rating to "market perform" from "outperform" and raised its price target to $92.75 from $79.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
This is the chart that stock bulls don't want you to see.
A top market timer thinks the S&P 500 will reach 2,150 by the end of this year.
The value of global equities have reached a record high.
Don't base investing decisions on a single event.
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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