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 poised to open higher on the heels of strong corporate earnings, especially from tech companies.
The earnings parade slows to a trickle on Friday after a busy week, giving investors a chance to reflect on what has transpired.
Tech titans such as Google Inc., Amazon.com Inc., and Microsoft Corp. reported a strong set of earnings after the close on Thursday. The Nasdaq set a new all-time closing high yesterday, and is poised to make a run at its intraday high to close out the week. In the pre-market, gains from tech-heavy Nasdaq futures exceed those of the Dow Jones and S&P futures.
S&P/TSX 60 futures are also in positive territory in the pre-market.
West Texas Intermediate futures are giving back ground this morning after Thursday's rally ahead of the weekly Baker Hughes rig count, which last showed that the number of active U.S. oil rigs fell to its lowest level since November, 2010.
However, market participants have begun to zero in on the so-called "fracklog" - a number of shale wells that have been drilled but not completed - as an element that will see production rise if the price of crude recovers modestly, and therefore is a source of downward pressure on crude prices.
Meanwhile, talks between European finance ministers meeting in Riga, the capital of Latvia, do not seem to be proceeding in a manner that increases the short-term prospects of a deal between Greece and its creditors. Bloomberg reports that Greek finance minister Yanis Varoufakis was "heavily criticized" by his peers for Athens' failure to produce a list of suitable reforms to unlock more money to aid Greece.
Greek equities, however, remain in the green, as do major European bourses.
In an encouraging sign for the Japanese economy, All Industries Activity unexpectedly rose in February from January, while the previous reading was revised to show a smaller decline than initially thought. Nonetheless, the Nikkei posted a sizeable loss on the session.
Elsewhere in Asia, Chinese equities declined while stocks in Hong Kong advanced.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 +0.11 per cent; Dow +0.08 per cent; Nasdaq +0.59 per cent
Equities:
Hong Kong's Hang Seng +0.84 per cent
Shanghai composite index -0.47 per cent
Japan's Nikkei -0.83 per cent
London's FTSE 100 +0.34 per cent
Germany's DAX +0.55 per cent
France's CAC 40 +0.34 per cent
Stoxx 600 +0.35 per cent
Commodities:
WTI crude oil (Nymex Jun) -0.42 per cent at $57.50 (U.S.) a barrel
Natural gas (Nymex May) +0.91 per cent at $2.554
Gold (Comex Jun) -0.63 per cent at $1,186.80 (U.S.) an ounce
Copper (Comex Jul) +1.15 per cent at $2.733 (U.S.) a pound
Currencies:
Canadian dollar at 82.44 (U.S.), up 0.001
U.S. dollar index down 0.023 at 97.255
Bonds:
U.S. 10-year Treasury yield 1.9515 per cent, down 0.0062
ECONOMIC INDICATORS:
Euro area finance ministers and central bankers meet (through April 25)
Durable goods orders rose 4 per cent month-over-month in March, well above the consensus estimate for a 0.6 per cent increase. However, excluding transportation equipment, core durable goods orders unexpectedly contracted by 0.2 per cent, defying expectations for a 0.3 per cent rise.
(10 a.m. ET) Bank of Canada governor Stephen Poloz participates in panel discussion in Washington
Canada - Budget balance for February
STOCKS TO WATCH:
Before the opening bell, American Airlines Group Inc. reported adjusted earnings of $1.73 per share, two cents above the consensus estimate. Though revenues declined relative to the same period in 2014, cheaper fuel buoyed the airline's bottom line.
After the market closed on Thursday, Amazon.com Inc. posted a 12-cent loss per share in the first quarter as analysts had anticipated, while a 15-per-cent jump in sales exceeded the consensus call. The company also issued guidance for the second quarter that was largely in-line with analysts' expectations. The stock is up more than 10 per cent in the pre-market.
Starbucks Corp. reported better-than-expected sales in the three months ending March 31 despite a lofty U.S. dollar, with profits matching the consensus call. Same-store sales in the Americas also increased by more than analysts had anticipated. The stock is up more than 4 per cent in the pre-market.
Earnings expected Friday include: American Airlines Group Inc.; Arthur J. Gallagher & Co.; Biogen Inc.; Cabot Oil & Gas Corp.; Canam Group Inc.; Capital Power Corp.; DTE Energy Co; IC Potash Corp; Lear Corp.; Polymet Mining Corp.; Restaurant Brands International Inc.; Siemens Ltd.; Simon Property Group Inc.; State Street Corp.; Tyco International Ltd.; Ventas Inc.; Xerox Corp.
ANALYST ACTIONS:
Target Corp. was upgraded to "buy" from "neutral" at Bank of America.
Amazon.con Inc. was upgraded to "outperform" from "market perform" by Raymond James, to "overweight" from "neutral" at JPMorgan, and to "buy" from "neutral" at Janney Capital.
AT&T Inc. was raised to "outperform" from "neutral" at Macquarie.
Microsoft Corp. was upgraded to "buy" from "neutral" at Nomura.
Best Buy Co. Inc. was lowered to "neutral" from "overweight" at JPMorgan.
Analysts at UBS initiated coverage on Suncor Energy Inc., Canadian Natural Resources Ltd., Cenovus Energy Inc., Crescent Point Energy Corp., and Encana Corp. with "buy" ratings.