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 virtually flat ahead of the open after the S&P 500 closed at a record high on Tuesday.
Reports indicate that Greece is poised to ask for a six-month extension of its loan agreement, with certain conditions attached. Such a move would give the nation more time to work towards a grand bargain with its creditors, though the appetite for adapting the existing program is minimal in some, chiefly German, quarters. Nonetheless, market participants seem convinced that concerns about Greece can be moved to the backburner for the time being.
This progress comes as the European Central Bank has decided to refrain from reducing emergency funding to Greek banks, according to Reuters.
In the United Kingdom, a stellar jobs report has traders re-evaluating how soon the Bank of England's Mark Carney will raise rates. The unemployment rate ticked down to 5.7 per cent, while real wage growth was running at its highest level since 2008. The sterling made gains against other currencies on the heels of this news.
In the United States, markets wait to react to January's housing starts and industrial production figures this morning and the release of minutes from the Federal Reserve's latest meeting this afternoon.
How both bonds and equities react to the extent of division amongst FOMC members regarding the inclusion of the word "patient" in the statement will be key to watch, as this would signal that the first rate hike might be set to take place in June, sooner than the market is pricing in.
Details on upcoming earnings, market results and a preview of the day's key economic releases can be found below.
MARKETS:
Futures:
S&P 500 -0.1 per cent; Dow unch; Nasdaq unch
Equities:
Hong Kong's Hang Seng +0.19 per cent
Shanghai composite index Closed for holiday
Japan's Nikkei +1.18 per cent
London's FTSE 100 -0.07 per cent
Germany's DAX +0.43 per cent
France's CAC 40 -0.06 per cent
Stoxx 600 +0.79 per cent
Commodities:
WTI crude oil (Nymex Apr) -1.90 per cent at $53.25 (U.S.) a barrel
Natural gas (Nymex Apr) +0.54 per cent at $2.79
Gold (Comex Apr) -0.09 per cent at $1,207.50 (U.S.) an ounce
Copper (Comex Mar) +0.12 per cent at $2.58 (U.S.) a pound
Currencies:
Canadian dollar at 80.38 (U.S.), down 0.0032
U.S. dollar index up 0.19 at 94.26
Bonds:
U.S. 10-year Treasury yield 2.14 per cent, down 0.00.53
ECONOMIC INDICATORS:
The U.S. producer price index fell 0.8 per cent in January, a steeper decline than the 0.4 per cent that was expected.
U.S. January building permits came in a 1.053 million versus the expected 1.067 million. U.S. housing starts were 1.065 million versus the estimated 1.07 million.
Canadian wholesale sales posted a 2.5 per cent increase in December, well ahead of economists' expectations of a 0.3 per cent gain.
Industrial production in the United States rose by 0.2 per cent month-over-month in January, a tick shy of analysts' estimates. December's figures were revised to show a larger contraction than was previously reported.
(2 p.m. ET) FOMC minutes from the Jan. 27-28 meeting will be released.
China's markets are closed from Feb.18-24 for the Lunar New Year.
STOCKS TO WATCH:
Cenovus Energy has turned to the market to raise at least $1.5-billion to help fund its already-reduced 2015 budget. The company late Tuesday said it raised the cash from a bought deal, selling 67.5 million shares for $22.25 each.
Regulatory filings show Warren Buffett's Berkshire Hathaway sold 41 million shares of Exxon Mobil Corp. during the final three months of 2014. Shares of Exxon are down 2 per cent in the premarket In addition, the Oracle of Omaha eliminated his stake in ConocoPhillips Co. However, Berkshire Hathaway increased its holdings of Suncor Energy Inc. from about 18.5 million shares at the end of September to over 22.35 million shares by year-end.
Sony Corp. said it plans to focus on its camera sensors and PlayStation businesses and is considering a spin-off of its mobile phone unit. The company aims to grow profits by 25-fold by 2018.
Hilton Worldwide Holdings Inc. posted better than expected revenues in the fourth quarter thanks to a pick-up in U.S. business travel, though adjusted earnings and its guidance failed to live up to analysts' estimates. Shares are in the red ahead of the open.
Fossil Group Inc. posted fourth quarter results that provided disappointing and a year-ahead outlook that came in far below analysts' estimates. Shares are falling sharply in the pre-market session.
Apple Inc. has been granted a patent for an iPhone-compatible head--mounted display that can be controlled by a remote.
Earnings expected: Barrick Gold, High Liner, Iamgold, Lundin Mining, Northland Power, Russel Metals, Avis Budget Grp Inc., Macquarie Infrastructure Company LLC, Marathon Oil Corp., SunEdison Inc., Sunoco LP.
ANALYST ACTIONS:
Canaccord Genuity upgraded Rona to "hold" from "sell" and raised its price target to $13 (Canadian) from $12.
BMO Nesbitt Burns initiated coverage on Baker Hughes Inc. with an "outperform" rating and price target of $78 (U.S.)
The Carlyle Group was upgraded to "buy" from "neutral" by analysts at Citigroup.
CenturyLink Inc. was downgraded to "sell" from "neutral" by Goldman Sachs.
Legg Mason Inc. was upgraded to "buy" from "hold" over at Jefferies Group.