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.
Crude oil is sliding even further into a bear market this morning, casting a chill on global trading desks and setting the Toronto market up for another uneasy session. Futures for the S&P 500 are down about 1 per cent, with a batch of weaker-than-expected economic figures out of the U.S. - including retail sales - pushing equity markets further into the red.
The November futures contract for Nymex West Texas Intermediate crude is threatening to break below $80 (U.S.) a barrel, down by more than 1 per cent, while Brent crude is trading just above $84 – its lowest in almost four years.
Traders remain worried about oil supply exceeding demand as much of the world's economy remains stubbornly in a slow growth – or even contracting – state.
Fresh economic data overnight only fuelled those concerns. China reported that its consumer inflation eased further in September, with prices rising 1.6 per cent from a year earlier, nearly a five-year low, and a little less than the 1.7 per cent expected by economists. Asian markets put their own positive spin on the China data however, with most indexes there rising as the weak inflation reading fuelled hopes of more monetary stimulus in China.
The Canadian dollar continues to see the effect of diving crude oil prices and the resurgence in the popularity of the greenback. It's trading just below 88 cents (U.S.) this morning, the weakest level since July 2009.
Here's a closer look at what's going on this morning.
MARKETS:
Futures:
S&P 500 -0.83 per cent
Dow -0.62 per cent
Nasdaq -0.71 per cent
S&P/TSX -0.41 per cent
Equities:
Hong Kong's Hang Seng +0.40 per cent
Shanghai composite index +0.62 per cent
Japan's Nikkei +0.92 per cent
London's FTSE 100 –1.17 per cent
Germany's DAX –1.25 per cent
France's CAC 40 –1.55 per cent
Stoxx 600 –1.41 per cent
Commodities:
WTI crude oil (Nymex Nov) –1.53 per cent at $80.63 (U.S.) a barrel
Natural gas (Nymex Jan) +0.80 per cent at $4.01 (U.S.)
Gold (Comex Dec) –0.77 per cent at $1,224.70 (U.S.) an ounce
Copper (Comex Dec) –0.61 per cent at $3.07 (U.S.) a pound
Currencies:
Canadian dollar at 87.98 (U.S.), down 0.0056
U.S. dollar index up 0.11 at 85.93
US dollar vs euro 0.7907, up 0.0006
Bonds:
U.S. 10-year Treasury yield 2.21 per cent, up 0.007
ECONOMIC INDICATORS:
U.S. retail sales for September fell 0.3 per cent from August, a steeper fall than the 0.1 per cent drop that was expected.
U.S. producer price index for September fell 0.1 per cent from August, weaker than the 0.1 per cent rise that was expected.
The U.S. Empire State Manufacturing Survey came in at 6.17, a much weaker reading than the 20.3 that was expected.
(9 a.m. ET) Canada existing home sales tentatively scheduled. They are forecast to rise 6 per cent from a year ago, with average prices rising 5.3 per cent. The MLS home price index is also tentatively scheduled to be released; it's forecast to rise 5.3 per cent from a year earlier.
(10 a.m ET) U.S. releases business inventories for August, forecast to rise 0.4 per cent.
(2 p.m. ET) U.S. releases the Beige Book.
STOCKS TO WATCH:
Bank of America said on a per-share basis, which includes the payment of preferred dividends, it had a 1-cent loss in the third quarter, easily topping the loss of 9 cents a share expected by analysts polled by Thomson Reuters. Shares are up 0.2 per cent in the premarket.
Other earnings today include: American Express Company; BlackRock; Charles Schwab; eBay; Kinder Morgan; Netflix; PNC Financial Services; St. Jude Medical.
ANALYST ACTIONS:
Morgan Stanley downgraded Intel to "equal weight" from "underweight" with a price target of $30 (U.S.).
Jennings Research upgraded Semafo to "buy" from "hold" and maintained a price target of $5.75 (Canadian).
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