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 trading to the upside ahead of the open, setting stocks up to make back some of Friday's huge losses.
The calendar is light on economic data, but big names like Halliburton Co., International Business Machines Corp., and Morgan Stanley publishing their first-quarter results.
Over the weekend, the People's Bank of China reduced the reserve requirements for banks, allowing them to hold less cash in reserves in an attempt to stimulate lending and prop up the economy.
The remarkable rally in Chinese equities during recent months was partially predicated on expectations of enhanced monetary accommodation. However, it seems the regulatory moves announced on Friday appear to have had a larger effect on investor sentiment. The Shanghai Composite index fell by 1.6 per cent; Hong Kong's Hang Seng index suffered a more severe loss, with both indexes playing catch-up to the moves seen in American and European equities on Friday.
Major European bourses, however, are largely moving higher.
Stocks in Athens pared some of last week's losses ahead of Friday's meeting of euro area finance ministers at which Greece might be able to make strides towards receiving more aid.
West Texas Intermediate futures are softening after last week's sizable advance.
S&P/TSX 60 futures are higher ahead of the release of earnings from two of the nation's largest companies: Canadian National Railway Co. and Rogers Communications Inc.
Bank of Canada Governor Stephen Poloz speaks as part of a panel in New York on at 10:00am ET on the commodity supercycle. As per usual, commentary from the governor could have an effect on the loonie and short-term rates.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 +0.51 per cent; Dow +0.56 per cent; Nasdaq +0.44 per cent
Equities:
Hong Kong's Hang Seng -2.02 per cent
Shanghai composite index -1.64 per cent
Japan's Nikkei -0.09 per cent
London's FTSE 100 +0.73 per cent
Germany's DAX +1.66 per cent
France's CAC 40 +0.51 per cent
Stoxx 600 +0.9 per cent
Commodities:
WTI crude oil (Nymex May) -0.65 per cent at $55.38 (U.S.) a barrel
Natural gas (Nymex May) -2.01 per cent at $2.581
Gold (Comex Jun) -0.39 per cent at $1,198.40 (U.S.) an ounce
Copper (Comex May) -1.05 per cent at $2.741 (U.S.) a pound
Currencies:
Canadian dollar at 81.66 (U.S.), down 0.0001
U.S. dollar index up 0.33 at 97.850
Bonds:
U.S. 10-year Treasury yield 1.8748 per cent, up 0.0095
ECONOMIC INDICATORS:
(10:05 a.m. ET) Bank of Canada governor Stephen Poloz participates in panel discussion in New York
STOCKS TO WATCH:
Oil field services giant Halliburton Co. reported adjusted earnings from continuing operations per share of $0.49 in the first three months of the year, besting the consensus estimate by 13 cents. Shares are moving higher in the premarket session. Chairman and chief executive officer Dave Lesar indicated that the firm's international business has proved to be "more resilient than the domestic market."
Morgan Stanley posted first-quarter adjusted earnings per share of $0.85, above analysts' expectations for $0.78. The Wall Street Journal also reported that Morgan Stanley is in the process of settling a New York state probe into how it marketed mortgage-backed securities prior to the financial crisis. The settlement charge is expected to be in the area of $500-million, according to sources familiar with the matter. Shares are moving higher in the premarket session.
Earnings include: BancFirst Corp.; Banner Corp.; Brookfield Canada Office Properties; Brown & Brown Inc.; Canadian National Railway Co., Check Point Software Tech Ltd.; Community Bank Sys Inc.; Halliburton Co.; Hasbro Inc.; ICU Medical Inc; Intl Business Machines Corp; Knoll Inc.; Lennox Intl Inc.; M&T Bank Corp.; MB Financial Inc.; Morgan Stanley; NVR Inc.; Pinnacle Financial Partners Inc.; RentACenter Inc.; Rogers Communications Inc.; Royal Caribbean Cruises Ltd.; Sensient Tech Corp.; SunTrust Banks Inc.; Western Alliance BanCorp.; Woodward Inc.
ANALYST ACTIONS:
Progressive Waste Solutions Ltd. was lowered to "sector perform" from "outperform" by RBC Dominion Securities.
Lululemon Athletica Inc. was downgraded to "underperform" from "outperform" at CLSA.
Halliburton Co. and Baker Hughes Inc. was lowered to "underperform" from "outperform" at CLSA, while Schlumberger Ltd. was downgraded to "underperform" from "buy."
Zargon Oil & Gas Ltd. was lowered to "reduce" from "hold" at TD Securities.