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.
Stock futures are pointing to a lower start for North American markets this morning, as a renewed flare-up in tensions in Russia and the Ukraine are once again prompting a risk-off mentality.
S&P 500 and TSX stock futures are down in the 0.2 per cent to 0.3 per cent range while the Stoxx 600 index of European stocks is down nearly 1 per cent. The perceived safety of other asset classes are benefiting, with gold up 0.7 per cent and the 10-year U.S. Treasury yield is retesting its lows for the year as bond prices rise.
Kiev said today that Russian forces have seized the coastal town of Novoazovsk and several villages that are near the border with Russia. That's created fresh concerns of an outright invasion of Ukraine, where President Petro Poroshenko is calling for an emergency meeting of the United Nations Security Council and the European Council. Russia has repeatedly denied claims its forces are fighting in Ukraine. Meanwhile, Russian hackers were accused today of stealing data from five banks, including JPMorgan Chase, in retaliation to U.S. sanctions against Russia.
Germany's DAX index is leading decliners in Europe, with a loss of about 1.5 per cent. The country released data showing inflation picked up in August, which has some thinking the European Central Bank will be more reluctant to announce more stimulus measures.
Closer to home, the U.S. released its latest revision to second-quarter gross domestic product, pegging it now at 4.2 per cent instead of the earlier estimate of 4.0 per cent. That marks a big turnaround from contraction of more than 2 per cent in the first quarter. Weekly jobless claims came in just below 300,000, largely as expected.
Meanwhile, the Canadian financial sector got another dose of good news this morning, as both TD Bank and CIBC released better-than-expected earnings. Most of the Big 6 banks reported pleasing results for the fiscal third quarter, but market reaction has been subdued - or even slightly negative - as Street expectations were running high after strong stock price gains in the sector this year.
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 -0.27 per cent; Dow -0.26 per cent; Nasdaq -0.25 per cent; S&P/TSX -0.25 per cent
Hong Kong's Hang Seng -0.71 per cent
Shanghai composite index -0.61 per cent
Japan's Nikkei -0.48 per cent
London's FTSE 100 -0.45 per cent
Germany's DAX -1.46 per cent
France's CAC 40 -0.92 per cent
Stoxx 600 -0.97 per cent
Commodities:
WTI crude oil (Nymex Oct) -0.04 per cent at $93.84 (U.S.) a barrel
Gold (Comex Dec) +0.75 per cent at $1,293.00 (U.S.) an ounce
Copper (Comex Dec) -0.53 per cent at $3.18 (U.S.) a pound
Currencies:
Canadian dollar at 92.10 (U.S.), up 0.0007
U.S. dollar index up 0.06 at 82.49
Bonds:
U.S. 10-year Treasury yield 2.33 per cent, down 0.03
ECONOMIC INDICATORS:
U.S. GDP expanded 4.2 per cent in the second quarter, according to a revised estimate that had earlier pegged it at 4.0 per cent. The Street was expecting 4.0 per cent.
U.S. weekly jobless claims last week held steady at 298,000, a slightly better reading than the 300,000 claims that were expected.
Canada's current account deficit in the second quarter was $11.9-billion, modestly wider than the $11.5-billion expected.
(10 a.m. ET) U.S. releases pending home sales for July, forecast to rise 0.5 per cent.
STOCKS TO WATCH:
Toronto-Dominion Bank reported adjusted Q3 profit of $1.15 (Canadian), beating the Street expectation of $1.09.
CIBC reported adjusted Q3 profit of $2.22, a penny better than Street estimates. It also said it plans to buy back as much as 2 per cent of its shares.
Laurentian Bank reported Q3 adjusted EPS of $1.35 vs. the estimated $1.40.
Canadian Western Bank reported Q3 adjusted EPS of 71 cents (Canadian) vs. the Street estimated 70 cents.
Dollar General reported quarterly results of 83 cents (U.S.) a share, matching Street expectations.
Abercrombie & Fitch reported quarterly revenue below Street forecasts, even as its EPS beat estimates, sending its shares down 8 per cent in the premarket.
ANALYST ACTIONS:
TD Securities upgraded Canacol Energy to "action list buy" from "buy" and raised its price target to $12 (Canadian) from $11.50.
Desjardins Securities raised its price target on National Bank of Canada to $52 (Canadian) from $48 and reiterated a "hold" rating. CIBC upgraded its rating to "sector performer" from "sector underperformer" and raised its price target to $54 from $51.
BMO upgraded Progressive Waste Solutions to "outperform" from "market perform" and raised its price target to $30 (U.S.) from $26.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Why seasonality is a secondary indicator.
The number of behemoth stocks is growing rapidly.
How to know what sectors to buy and sell as interest rates rise and fall.
The unintended consequences of risk avoidance.
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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