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 falling this morning amid valuation concerns and fears the strong greenback will weigh on first-quarter results. S&P/TSX 60 futures are also trading to the downside.
Stateside, the focus will be on the heavy slate of earnings coming out this week, which are not expected to be overly strong.
"Markets are priced to perfection so investors will need to hear something compelling for new money to be put to work," said IG chief market strategist Chris Weston.
"We expect a profit recession for 1H15 S&P EPS and while 2H15 should be better, now is no time to rely on further PE expansion," said Deutsche Bank strategist David Bianco. "We think the risk of a correction is high and we expect a 5 to 10 per cent dip near-term."
Chinese trade figures for the month of March were atrocious, with both exports and imports down double digits on an annual basis.
This disappointing print has prompted economists to dial down their expectations for first-quarter growth, scheduled to be published on Wednesday – but also boosted investors' faith that additional stimulus from the People's Bank of China is in the offing.
The MSCI Emerging Markets Index rose for the 11th consecutive day, buoyed by Chinese and Hong Kong equities.
West Texas Intermediate futures are trading above $52 (U.S.) per barrel this morning. After drifting lower last week, the Canadian dollar is continuing to lose ground on the U.S. greenback despite the uptick in the price of oil ahead of the Bank of Canada's rate decision this Wednesday. Commodity currencies, particularly the Aussie dollar, took large hits in the aftermath of the Chinese trade figures.
The strong string of European data continued, with Italian industrial production rising more than anticipated in February. European bourses are mixed halfway through the session.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 -0.16 per cent; Dow -0.13 per cent; Nasdaq -0.02 per cent
Equities:
Hong Kong's Hang Seng +2.73 per cent
Shanghai composite index +2.17 per cent
Japan's Nikkei -0.01 per cent
London's FTSE 100 -0.45 per cent
Germany's DAX unchanged
France's CAC 40 -0.01 per cent
Stoxx 600 +0.1 per cent
Commodities:
WTI crude oil (Nymex May) +1.34 per cent at $52.33 (U.S.) a barrel
Natural gas (Nymex May) -0.2 per cent at $2.506
Gold (Comex Jun) -0.47 per cent at $1,198.90 (U.S.) an ounce
Copper (Comex May) -0.07 per cent at $2.733 (U.S.) a pound
Currencies:
Canadian dollar at 79.12 (U.S.), down 0.0043
U.S. dollar index up 0.592 at 99.93
Bonds:
U.S. 10-year Treasury yield 1.9718 per cent, up 0.0245
ECONOMIC INDICATORS:
(2 p.m. ET) U.S. budget deficit. Estimated to be $43.4-billion for March, an increase from $36.9-billion in March of 2014.
STOCKS TO WATCH:
Alamos Gold Inc. and AuRico Gold Inc. have agreed to merge, which will result in the creation of a $1.5-billion gold mining firm. The deal is expected to close in the second quarter of 2015.
Shares of Netflix Inc. are up nearly 2 per cent in early trading on the heels of an upgrade to "buy" from "neutral" at UBS. The company submitted a filing on Friday indicating that it is asking regulators for permission to increase its share count, which would be a prerequisite for a stock split.
Hedge fund Jana Partners is calling on Qualcomm Inc. to spin off its chip unit and accelerate its share repurchasing plan. Shares are up more than 5 per cent in the pre-market session.
Earnings include: M&T Bank Corp.; Pinnacle Financial Partners Inc.
ANALYST ACTIONS:
HudBay Minerals Inc. was lowered to "neutral" from "buy" at Bank of America.
West Fraser Timber Co. Ltd. was upgraded to "outperform" from "sector perform" by RBC Dominion Securities.
Cameco Corp. was raised to "buy" from "neutral" at Bank of America.
Teck Resources Ltd. was cut to "neutral" from "buy" at UBS.