The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
Stock futures are pointing to a flat start for the TSX and Wall Street when markets open this morning, with global traders keeping a watchful eye on Greece, where an anti-austerity party has come to power after a weekend election. Stock futures in both Canada and the U.S. were lower earlier this morning, but have since shed most of those losses.
The win by opposition party Syriza has rekindled fears of the indebted nation leaving the euro zone or further dragging down economies in Europe. Prime Minister-elect Alexis Tsipras has promised to renegotiate the nation's bailout with international creditors, which may include a writedown of Greek debt as he tries to persuade European creditors to keep aid flowing.
European markets initially sold off after the election results became known, but have reversed course to trade slightly higher for the most part ahead of the opening bell. Traders note that Syriza's rhetoric has softened in recent weeks, with its leaders expressing hope to stay within the euro even with a strong stand against austerity. Banks across the euro zone also have much less exposure to Greek debt than they did during the time of the financial crisis more than six years ago. Sentiment in European markets today also continues to be cautiously upbeat thanks to the European Central Bank's aggressive 1.1-trillion-euro bond-buying program announced last week.
Here in North America, a key focus today and throughout this week will be on fourth-quarter earnings. Analysts' profit forecasts for the quarter dropped like a rock after the collapse in crude oil prices over the past several months, with S&P 500 companies only expected to see earnings growth of 1.1 per cent in the last three months of 2014 - down from an October estimate of 8.1 per cent, according to Bloomberg. With 18 per cent of S&P 500 companies having reported, 72.2 per cent have topped earnings expectations, while 54.4 per cent have beaten revenue forecasts, according to Thomson Reuters data. That compares with the long-term average of 63 percent for earnings and 61 percent for revenue.
Meanwhile, the Canadian dollar is trading lower this morning and is threatening to break below the 80 cents (U.S.) level. And crude oil has erased earlier losses to trade slightly positive amid reports of a rocket attack on a Libyan oil facility. The March U.S. futures contract had earlier slid as low as $44.35 (U.S.) a barrel - right near six-year lows.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Futures:
S&P 500 +0.12 per cent; Dow +0.06 per cent; Nasdaq +0.23 per cent; S&P/TSX +0.08 per cent
Equities:
Hong Kong's Hang Seng +0.24 per cent
Shanghai composite index +0.93 per cent
Japan's Nikkei -0.24 per cent
London's FTSE 100 -0.52 per cent
Germany's DAX +0.72 per cent
France's CAC 40 +0.05 per cent
Stoxx 600 +0.17 per cent
Commodities:
WTI crude oil (Nymex Mar) +0.22 per cent at $45.68 (U.S.) a barrel
Natural gas (Nymex Mar) -4.12 per cent at $2.84
Gold (Comex Feb) -1.21 per cent at $1,276.90 (U.S.) an ounce
Copper (Comex Mar) -1.02 per cent at $2.48 (U.S.) a pound
Currencies:
Canadian dollar at 80.26 (U.S.), down 0.0013
U.S. dollar index up 0.21 at 94.97
Bonds:
U.S. 10-year Treasury yield 1.80 per cent, unchanged
ECONOMIC INDICATORS:
No major reports scheduled.
STOCKS TO WATCH:
Sears Canada has appointed Ronald Boire as its president and CEO, a position he has held on an interim basis since he was moved in last October by the company's U.S. parent.
Media reports suggest IBM is gearing up for the biggest reorganization in its history, possibly involving the layoff of a quarter of its staff.
MeadWestvaco and Rock-Tenn announced a stock-swap merger that will create a $16-billion packaging company.
Homebuilder D.R. Horton reported Q1 EPS of 39 cents, beating the consensus view of 34 cents.
Norfolk Southern reported Q4 EPS $1.64 (U.S.) vs. estimates for $1.63.
Other earnings today include: Brookfield Canada Office Properties, NMicrosoft, Texas Instruments.
Cliffs Natural Resources Inc said it would scrap its quarterly dividend of 15 cents per share from the first quarter. The miner also said it reduced its net debt balance by more than $400 million in the fourth quarter and beginning of January 2015.
AT&T Inc said it will buy bankrupt NII Holdings Inc's wireless business in Mexico for $1.875 billion, less outstanding net debt.
ANALYST ACTIONS:
Canaccord Genuity downgraded Rogers Communications to "hold" from "buy" but hiked its price target to $48 (Canadian) from $46.
Goldman Sachs downgraded Kinross Gold to "sell" from "neutral" with a price target of $2.80 (U.S.).
BMO Nesbitt Burns downgraded Africa Oil to "market perform" from "outperform" and cut its price target to $2.60 (Canadian) from $5.
Industrial Alliance Securities downgraded Airboss of America to "buy" from "strong buy" but raised its price target to $16.50 (Canadian) from $15.
Needham & Co. downgraded Electronic Arts to "buy" from "strong buy" with a price target of $51 (U.S.).
Credit Suisse downgraded UPS to "neutral" from "outperform" and cut its price target to $102 (U.S.) from $112.
THIS MORNING'S TOP INVESTMENT READS ON THE WEB:
A look at the largest companies reporting earnings this week - and the earnings score board so far.
For Saudis, falling demand for oil is the biggest concern.
Doing nothing is often the hardest move to make in the financial markets.
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Have feedback on our daily Before the Bell report and suggestions on how to make it more useful in your investing day? Please contact Inside the Market Editor Darcy Keith at dakeith@globeandmail.com.
Darcy Keith