Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
U.S. equity futures are in the red after the Dow Jones and S&P 500 closed at record highs on Monday while the Nasdaq broke above 5,000 for the first time since 2000.
Stateside, the focus will be on auto sales for February, scheduled to be released throughout the day, as well as a handful of earnings from retail companies.
Overnight, the Reserve Bank of Australia decided to maintain its benchmark lending rate at 2.25 per cent after reducing rates in February. While a decent swath of the market thought monetary policymakers would add stimulus, the choice to stand pat was in line with consensus.
"It seems the moves in property have been the key reason why the Reserve Bank of Australia left rates on hold, with the central bank openly talking about the strong rise in property prices in Sydney," said IG chief strategist Chris Weston. "Increased regulation around the housing market will be hurried through and, subsequently, the RBA can get on with adjusting the cash rate lower."
The Australian dollar advanced against major currencies in the wake of this decision. The Canadian dollar also rallied against its U.S. counterpart following this event, though the move was fairly limited.
Across the pond, the United Kingdom's Construction Purchasing Managers' Index edged up to a four-month high of 60.1 in February. In a strong showing for the growth engine of the euro zone, Germany's retail sales rose by 2.9 per cent month-over-month in January, far more than economists had anticipated, while the prior month's decline was revised higher to show a solid gain.
European equities are largely flat on the day.
West Texas Intermediate futures are drifting higher this morning after a roller-coaster session to open the week. The bid in crude is helping S&P/TSX futures stay marginally in positive territory ahead of the open.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 -0.12 per cent; Dow -0.08 per cent; Nasdaq -0.09 per cent
Equities:
Hong Kong's Hang Seng -0.77 per cent
Shanghai composite index -2.2 per cent
Japan's Nikkei -0.06 per cent
London's FTSE 100 -0.12 per cent
Germany's DAX -0.04 per cent
France's CAC 40 -0.07 per cent
Stoxx 600 -0.04 per cent
Commodities:
WTI crude oil (Nymex Apr) +1.94 per cent at $50.55 (U.S.) a barrel
Natural gas (Nymex Apr) -1.59 per cent at $2.655
Gold (Comex Apr) +0.17 per cent at $1,210.20 (U.S.) an ounce
Copper (Comex May) -1.45 per cent at $2.6585 (U.S.) a pound
Currencies:
Canadian dollar at 80.24 (U.S.), up 0.0049
U.S. dollar index up 0.081 at 95.543
Bonds:
U.S. 10-year Treasury yield 2.0996 per cent, up 0.0176
ECONOMIC INDICATORS:
Canada's GDP expanded at a seasonally adjusted and annualized rate of 2.4 per cent in the fourth quarter, well above the consensus estimate for growth of 2 per cent.
(830 a.m. ET) Canada January industrial product price index, forecast to fall 1.1 per cent, and raw materials price index, forecast to drop 6.5 per cent.
Auto sales tentative scheduled.
(815 p.m. ET) Fed Chair Yellen speaks on bank regulation.
STOCKS TO WATCH:
The Bank of Nova Scotia posted adjusted earnings per share for the first quarter that came in slightly below analysts' expectations. The bank also bumped its quarterly dividend by 2 per cent to $0.68 per share,
BlackBerry Ltd. launched the new "Leap" smartphone at the Mobile World Congress in Barcelona. The device will be released this year and is intended to help the firm preserve market share in select emerging markets.
Best Buy reported Q4 EPS from continuing operations of $1.47 (U.S.) vs. expectations of $1.35.
Barclays Plc is falling during the European session after announcing a $1.2-billion charge related to alleged foreign exchange manipulation.
Best Buy Co. is boosting its quarterly dividend to $0.23 from $0.21 and paying out a special dividend of $0.51 per share. The company's fourth quarter results exceeded expectations, though top-line results were shy of the consensus estimate. Management also announced that the company plans on repurchasing $1-billion in shares of the next three years.
Other earnings include: Avigilon, Centric Health, EnerCare, AutoZone Inc., Bridgepoint Education, Dick's Sporting Goods, Kate Spade & Co., NeoPhotonics Corp., Renewable Energy Group, Smith & Wesson, TiVo Inc., TRI Pointe Homes, Trivascular Tech Inc., WhiteHorse Finance Inc.
ANALYST ACTIONS:
Lumber Liquidators was upgraded to "buy" from "neutral" by Janney Capital.
Vermilion Energy Inc. was cut to "sector perform" form "sector outperform" at Peters & Co.
American Express was lowered to "underperform" from "neutral" at Macquarie.
Citigroup Inc. was raised to "overweight" form "neutral" at JPMorgan.