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 higher opening for Canadian and U.S. markets today, finding encouragement from European markets that are trading positively after a weak reading on euro zone inflation.
That report in Europe, which showed consumer prices rising a mere 0.3 per cent in August for the lowest inflation level in almost five years, was largely expected by economists but has further fuelled the debate on whether the European Central Bank will soon announce more stimulus measures to prevent a deflationary spiral. The ECB meets next week for its policy-setting meeting, and comments late last week from President Mario Draghi that the bank will use "all the available instruments needed to ensure price stability" has spurred speculation there could be another quantitative easing program on the way, or other measures.
This has been an exceptionally quiet period in the markets. The U.S. stock market has been experiencing the slowest trading in at least six years, according to Bloomberg, with volume below five billion shares in each of the past eight days. But markets generally trended higher, with a gain of 3.4 per cent so far in August, its biggest monthly rally since February.
Several U.S. and Canadian economic reports are out this morning, which we detail below. Meanwhile, traders are keeping a close eye on developments in Ukraine, which has accused Russia of invading the country in a setback to a diplomatic resolution to that crisis.
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 +0.28 per cent; Dow +0.24 per cent; Nasdaq +0.29 per cent; S&P/TSX +0.13 per cent
Hong Kong's Hang Seng Unchanged
Shanghai composite index +0.96 per cent
Japan's Nikkei -0.23 per cent
London's FTSE 100 +0.19 per cent
Germany's DAX +0.25 per cent
France's CAC 40 +0.23 per cent
Stoxx 600 +0.28 per cent
Commodities:
WTI crude oil (Nymex Oct) +0.44 per cent at $94.97 (U.S.) a barrel
Gold (Comex Dec) -0.35 per cent at $1,285.80 (U.S.) an ounce
Copper (Comex Dec) +0.41 per cent at $3.16 (U.S.) a pound
Currencies:
Canadian dollar at 92.23 (U.S.), up 0.0015
U.S. dollar index up 0.01 at 82.48
Bonds:
U.S. 10-year Treasury yield 2.35 per cent, up 0.007
ECONOMIC INDICATORS:
Canada GDP for the second quarter rose 3.1 per cent, ahead of Street forecasts of 2.7 per cent. For June, it rose 0.3 per cent, versus estimates for 0.2 per cent growth.
Canadian industrial product prices in July fell 0.3 per cent from June, close to expectations.
The U.S. Commerce Department said consumer spending dipped 0.1 per cent last month, the first decline since January, after an unrevised 0.4 per cent gain in June. U.S. income growth slowed to a 0.2 per cent rate in July, versus estimates for 0.3 per cent growth.
(9:45 a.m. ET) The Chicago purchasing managers index for August. It's forecast to climb to 57.5, from 52.6 in July.
(955 a.m. ET) U.S. releases the Reuter's/University of Michigan consumer sentiment index. It's expected to rise to 80.5 from the early August reading of 79.2.
STOCKS TO WATCH:
Earnings today include Big Lots.
U.S. shares of AstraZeneca rose 2.5 percent to $76.09 in premarket trading after the company's cancer drug pipeline was boosted by news it had moved its immuno-oncology medicine MEDI-4736 into a mid-stage study in colorectal cancer.
The Wall Street Journal reported that Johnson & Johnson plans to seek a buyer for its medical device maker business, which could fetch between $1.5 billion and $2 billion.
ANALYST ACTIONS:
BMO Nesbitt Burns raised its price target on CIBC to $105 (Canadian) from $100 and maintained an "outperform" rating. Desjardins Securities raised its target to $114 from $110 and maintained a "buy" rating.
Beacon Securities upgraded Energold Drilling to "buy" from "hold" with a 12-month target price of $2 (Canadian).
THIS MORNING'S TOP INVESTING READS ON THE WEB:
The investing buzzword that experts hate, but refuses to die.
Even in this low interest-rate environment, dividend stocks are not a substitute for bonds.
Investors are overpaying for funds in their pursuit of past performance.
A reason to be cautious on the market: The buyback bonanza is ending.
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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