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. and Canadian equity futures are steady ahead of a busy day of economic data and earnings.
Retail sales for March proved underwhelming once again, frustrating those looking for evidence that U.S. consumers are breaking out of their winter malaise. The producer price and NFIB small business indexes are also slated to be published this morning.
Earnings season, meanwhile, is well under way, with the big U.S. banks beginning to report on Tuesday. Both JPMorgan Chase and Wells Fargo & Co. exceeded the consensus estimate on both the top and bottom lines.
Across the pond, the European comeback story continues to impress, with industrial production rising 1.1 per cent month-over-month in February, far more than was anticipated. Growth in non-durable consumer goods contributed the most to this pick-up in production.
Some welcome signs of inflation in Germany: wholesale prices rose by 1 per cent in February, the largest monthly increase in over two years.
West Texas Intermediate crude oil futures continue to hover above $52 (U.S.) per barrel this morning. While front-month contracts have firmed, however, the later months have come under pressure. As such, the profitability of the storage trade is being crimped. This could reduce one of the key reasons to purchase physical oil and weigh on the spot price.
Data on Chinese new credit suggests that shadow banking is waning, though aggregate financing came in shy of estimates in March. Chinese equities didn't seem to mind, however, enjoying another day of decent gains.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 -0.02 per cent; Dow +0.02 per cent; Nasdaq +0.02 per cent
Equities:
Hong Kong's Hang Seng -1.62 per cent
Shanghai composite index +0.34 per cent
Japan's Nikkei +0.02 per cent
London's FTSE 100 +0.26 per cent
Germany's DAX -0.31 per cent
France's CAC 40 -0.35 per cent
Stoxx 600 -0.1 per cent
Commodities:
WTI crude oil (Nymex May) +0.77 per cent at $52.31 (U.S.) a barrel
Natural gas (Nymex May) +0.8 per cent at $2.531
Gold (Comex Jun) -1.05 per cent at $1,186.70 (U.S.) an ounce
Copper (Comex May) -1.29 per cent at $2.684 (U.S.) a pound
Currencies:
Canadian dollar at 79.48 (U.S.), up 0.0008
U.S. dollar index down 0.007 at 99.483
Bonds:
U.S. 10-year Treasury yield 1.9176 per cent, down 0.0096
ECONOMIC INDICATORS:
U.S. retail sales rose 0.9 per cent month-over-month in March, two tenths of a percentage point below the consensus estimate.
The U.S. producer price index rose 0.2 per cent month-over-month in March, in line with consensus.
(10 a.m. ET) U.S. business inventories for February. Estimated to increase 0.2 per cent
STOCKS TO WATCH:
Nokia, the Finnish telecom equipment maker, confirmed it is in "advanced discussions" regarding a business combination with France's Alcatel-Lucent, but stressed that no transaction is certain.
JPMorgan Chase reported first-quarter earnings per share of $1.45 (U.S.), four cents better than the consensus estimate, according to Bloomberg. Revenues of $24.8-billion also came in above analysts' expectations, fuelled by a pick-up in fixed-income trading revenue.
Johnson & Johnson posted first-quarter adjusted earnings per share of $1.56, three cents above the consensus estimate. The company also lowered its full-year guidance for earnings, citing the lofty U.S. dollar.
Wells Fargo & Co. posted first-quarter earnings per share of $1.04, six cents higher than the Street's estimate. Revenues were also higher than expected. The bank's net interest margin fell to 2.95 per cent - the first time it dipped below 3 per cent since the 1990s, according to Bloomberg. Chief executive officer John Stumpf highlighted the growth of the bank's mortgage business as an area of strength.
Shaw Communications Inc. posted second-quarter earnings of $0.34, at the low end of the range of estimates provided by analysts. However, the results may not be directly comparable with prior periods, due to restructuring costs. Revenues of $1.34-billion were virtually in-line with consensus. The company reaffirmed that full-year free cash flow would exceed $650-million.
Earnings include: Shaw Communications; Theratechnologies; CSX Corp.; Fastenal Co.; Intel Corp.; J.B. Hunt Transport Services Inc.; Johnson & Johnson; JPMorgan Chase & Co.; Linear Technology Corp.; Wells Fargo & Company
ANALYST ACTIONS:
Interfor Corp. was upgraded to "strong buy" from "outperform" at Raymond James.
Qualcomm Inc. was raised to "buy" from "neutral" at Bank of America.
Cineplex Inc. was initated with a "hold" rating at TD Securities.
Alamos Gold Inc. was lowered to "hold" from "buy" at TD Securities.