The Before the Bell report is constantly updated to reflect the latest news developments and market moves in the premarket. Check back later for updates.
The resource-heavy TSX, unloved relative to Wall Street stocks over the last several trading sessions, faces more hurdles again today.
Gold and copper prices are in the red, as the U.S. dollar is trading at four-year highs amid speculation the Federal Reserve's first interest rate hike since the financial crisis is nearing. Industrial metals received some unsettling news overnight when China said it uncovered $10-billion (U.S.) of trade fraud.
The S&P/TSX composite index has retreated over the past four trading sessions, and is down 3.4 per cent so far in September. Things have been rosier down south, where the S&P 500 index is less than 1 per cent below its record high.
Much of that underperformance is because of tumbling commodity prices and the resulting weakness in resource stocks. Canadian energy stocks have fallen more than 6 per cent since the TSX hit a record high on Sept. 3, and materials stocks are off 8 per cent.
Traders have been bringing forward bets on higher U.S. interest rates, buoying the U.S. dollar, which tends to drive down the value of greenback-priced commodities. The Bloomberg dollar spot index - a measure of the value of the U.S. currency relative to its significant trading partners - touched the highest level today since June 2010. The fresh allegations today that companies forged and illegally re-used documents for exports and imports in China have cast even more doubt in the future direction of industrial metals such as copper, given it could result in Chinese banks slowing commodity imports to conduct more careful checks on documentation.
Also overnight, there were reports that Chinese President Xi Jinping is considering replacing the head of the nation's central bank, sparking speculation of looser monetary policy ahead. Japan's Nikkei had a strong day, rising 1.2 per cent to a fresh seven-year high, thanks in part to a weaker yen.
European stocks have a firm tone this morning, as European Central Bank president Mario Draghi once again vowed to act with more policy measures to boost economic growth in the euro zone.
U.S. stock futures were flat earlier this morning but have turned negative ahead of the opening bell. Crude oil has come off its lows from earlier today, which may provide some support to TSX energy stocks.
Now, here's a closer look at what's going on this morning and what is to come.
MARKETS:
Equities:
Futures: S&P 500 -0.19 per cent; Dow -0.12 per cent; Nasdaq -0.21 per cent; S&P/TSX -0.02 per cent
Hong Kong's Hang Seng -0.64 per cent
Shanghai composite index +0.06 per cent
Japan's Nikkei +1.28 per cent
London's FTSE 100 -0.09 per cent
Germany's DAX +0.48 per cent
France's CAC 40 +0.32 per cent
Stoxx 600 +0.48 per cent
Commodities:
WTI crude oil (Nymex Nov) +0.65 per cent at $93.40 (U.S.) a barrel
Gold (Comex Dec) -0.83 per cent at $1,209.40 (U.S.) an ounce
Copper (Comex Dec) -0.47 per cent at $3.04 (U.S.) a pound
Currencies:
Canadian dollar at 89.97 (U.S.), down 0.0044
U.S. dollar index up 0.36 at 85.40
Bonds:
U.S. 10-year Treasury yield 2.56 per cent, down 0.01
ECONOMIC INDICATORS:
U.S. initial jobless claims last week rose to 293,000 from the previous week's 280,000. The Street had forecast 299,000.
U.S. durable goods orders in July fell 18.2 per cent, which was close to expectations because of a decline in aircraft orders. Excluding the transportation sector, orders rose 0.7 per cent - matching Street expectations.
STOCKS TO WATCH:
Canadian natural gas stocks will be in focus after Malaysia's state-owned oil-and-gas giant Petronas threatened to cancel a $10-billion (U.S.) liquefied natural gas project in British Columbia. Petronas chief executive officer Shamsul Abbas told the Financial Times in an interview that he is "ready to call off" the Pacific NorthWest LNG project amid a delayed regulatory approval process, plans by the B.C. government to impose an LNG tax and a "lack of appropriate incentives."
Jeffrey W. Ubben, activist investor and CEO Of ValueAct Capital, has been appointed to the board of Valeant Pharmaceuticals.
Sears Canada president and CEO Douglas C. Campbell is resigning by year-end and returning to the U.S. due to personal family reasons. A search for a new CEO is underway.
Apple shares were trading down nearly 1 per cent in the premarket. The company Wednesday released a workaround for iPhone 6 and iPhone 6 Plus users who reported a drop in cellular service and the inability to use the fingerprint reading Touch ID after downloading the iOS 8.0.1 mobile operating system.
Earnings today include: Vecima Networks; Nike; Gold Fields.
ANALYST ACTIONS:
HSBC upgraded Barrick Gold to "overweight" from "neutral" and raised its price target to $18.50 (U.S.).
Raymond James downgraded Finning International to "market perform" from "outperform" and reiterated a $34.50 (Canadian) price target.
Raymond James upgraded Fortuna Silver Mines to "strong buy" from "outperform" and maintained a $6.50 (Canadian) price target.
Raymond James raised its price target on Stantec to $86 (Canadian) from $79 and maintained an "outperform" rating.
RBC Dominion Securities downgraded Yahoo to "sector perform" from "outperform" with a price target of $44 (U.S.).
RBC Dominion Securities downgraded KB Home to "sector perform" from "outperform" with a price target of $17 (U.S.), down from $20.
THIS MORNING'S TOP READS ON THE WEB:
Did Alibaba's IPO signal a top in the stock market? A number of investment advisers say yes.
Only these 10 stocks carry the highest ratings at Morningstar.
An ounce of gold is worth the most bushels of corn in at least four decades, signaling the grain is "dirt cheap."
Commodities got over-hyped and over-loved and we're now going through a long period of mean reversion.
Warren Buffett is right to hate gold.
When investment fees are - and aren't - worth it.
----
Have feedback on our daily Before the Bell report and suggestions on how to make it more useful in your investing day? Please contact Inside the Market Editor Darcy Keith at dakeith@globeandmail.com.