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 modestly higher ahead of the open as traders digest communiqués from the annual National People's Congress in China.
Chinese policymakers are aiming for growth of around 7 per cent this year, half a percentage point below the goal for 2014, and the lowest target in more than 15 years. The nation is in the midst of a transition from credit-fuelled growth to expansion driven through domestic demand. Premier Li Keqiang also affirmed that the government's crackdown on corruption would continue, and that this would extend to polluters who create illegal emissions.
While this moderation in growth aspirations was well telegraphed, Chinese equities sold off following this news.
In Europe, the Bank of England and European Central Bank maintained the status quo on rates. The ECB will be closely watched prior to the open, as President Mario Draghi holds a press conference this morning to discuss monetary policy, including the central bank's quantitative easing program, and the staff's economic forecasts.
Germany factory orders declined by 3.9 per cent month-over-month in January, one of the few discouraging data points seen this year from the euro zone's strongest economy. Most major European bourses, however, are trading to the upside.
West Texas Intermediate crude is also higher this morning, with a barrel trading around $52 (U.S.). After selling off in the wake of a stronger-than-anticipated build in inventories on Wednesday morning, crude proceeded to rebound throughout the afternoon. In Canada, S&P/TSX 60 futures are higher ahead of the open on a day in which many TSX Composite components are slated to release quarterly results.
Here's a look at the latest market numbers and other highlights ahead of the trading day – with one caveat: severe winter weather in Washington, D.C. may delay the release of some U.S. economic data.
Futures:
S&P 500 +0.16 per cent; Dow +0.18 per cent; Nasdaq +0.16 per cent
Equities:
Hong Kong's Hang Seng -1.11 per cent
Shanghai composite index -0.92 per cent
Japan's Nikkei +0.26 per cent
London's FTSE 100 +0.49 per cent
Germany's DAX +0.76 per cent
France's CAC 40 +0.97 per cent
Stoxx 600 XXX per cent
Commodities:
WTI crude oil (Nymex Apr) +0.62 per cent at $51.85 (U.S.) a barrel
Natural gas (Nymex Apr) +0.72 per cent at $2.789
Gold (Comex Apr) -0.1 per cent at $1,199.70 (U.S.) an ounce
Copper (Comex May) unchanged at $2.6595 (U.S.) a pound
Currencies:
Canadian dollar at 80.45 (U.S.), down 0.0003
U.S. dollar index up 0.18 at 96.16
Bonds:
U.S. 10-year Treasury yield 2.133 per cent, up
0.012
ECONOMIC INDICATORS:
U.S. initial jobless claims last week came in at 320,000, above expectations for 295,000.
(10 a.m. ET) U.S. factory orders for January, forecast to rise 0.2 per cent.
STOCKS TO WATCH:
Canadian Natural Resources Ltd. nearly tripled its fourth quarter profits on an annual basis, with adjusted earnings per share coming in above the consensus estimate. The firm also upped its dividend to $0.23 from $0.225.
Encana Corp. announced a $1.25-billion bought deal after the close on Wednesday. The oil and natural gas producer is planning on using the proceeds to pay down debt.
AbbVie Inc. is purchasing Pharmacyclics Inc., which specializes in cancer
drugs, in a $21-billion cash and stock deal.
Costco Wholesale Corp.
reported adjusted earnings per share well above analysts estimates in the fourth
quarter, with same-store sales rising 8 per cent (excluding fuel).
George Weston Ltd. reported a bottom line miss and a top line beat in the
fourth quarter, with net earnings falling compared to the same period in 2013
due to a number of one-time charges.
Other earnings include: Algonquin Power, Descartes Systems, GMP Capital, SNC-Lavalin, ZCL Composites, Abraxas Petroleum Corp., Addus HomeCare Corp., Air Transport Services Group Inc., BlackRock Kelso Capital Corp., Canadian Solar Inc., Cellular Dynamics, Checkpoint Systems, Chefs' Warehouse Inc., Chesapeake Utilities Corp., Ciena Corp., Comtech TeleCommunications, Demand Media, Descartes Systems, Diamond Foods, Kroger Co., Resolute Energy, Skullcandy Inc., TransGlobe Energy, U.S. Concrete, Violin Memory Inc., Zogenix Inc.
ANALYST ACTIONS:
Great Canadian Gaming was upgraded to "outperform" from "market perform" at Raymond James. It also raised its price target to $24 (Canadian) from $20.
Methanex Corp. was upgraded to "strong buy" from "outperform" by
Raymond James. Its price target went to $70 (U.S.) from $60.
Restaurant Brands International was downgraded to "neutral" from "buy" at
Goldman Sachs. It also removed the company from its Americas buy list.
Dunkin' Brands Group, Inc. was raised to "buy" from
"neutral" at Goldman Sachs.
McDonald's Corp. was
downgraded to "neutral" from "overweight" at Piper Jaffray.