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.
U.S. stock futures have extended early morning gains after the U.S. released a stronger-than-expected second reading on third-quarter gross domestic product. Futures for both the Dow and S&P 500 are up about 0.2 per cent. Gold prices have dipped into negative territory as the U.S. dollar gained strength in the aftermath of the report.
U.S. real GDP for the third quarter rose 3.9 per cent, according to a second reading today. That was higher than the consensus estimate of 3.3 per cent, and ahead of the first reading of 3.5 per cent. The report suggests the U.S. Federal Reserve's first hike in interest rates since the Great Recession may be just around the corner.
Germany released its own GDP numbers earlier today, confirming that the economy grew a mere 0.1 per cent in the third quarter from the second. There continues to be a lot of market chatter speculating that the European Central Bank will soon step up its battle against deflation by unleashing a full-fledged quantitative easing program. The Stoxx 600 broad index of European equities this morning is up nearly 0.4 per cent.
Asian stocks were mixed overnight, with the Shanghai index rising 1.3 per cent to fresh three-year highs. Risk-appetite for equities in China has increased since the country's central bank made a surprise cut in interest rates last week.
In this country, retail sales for September came in a little higher than expected when compared to August - but the gain was driven entirely by the auto sector. The Canadian dollar is slightly firmer in the wake of the report. The currency is also finding encouragement from the latest views of the Organization for Economic Co-operation and Development. It believes the Bank of Canada will start raising its key interest rate next spring – about six months ahead of what most economists believe and what the central bank has been implying. The international economic policy and research body argued that Canada's low and economically stimulative 1.0-per-cent central bank rate "will need to be gradually withdrawn to counter inflationary pressures," as the economy grows toward reaching its full output capacity.
Now, here's a closer look at what's happening this morning and what is still to come.
MARKETS:
Futures:
S&P 500 +0.21 per cent; Dow +0.21 per cent; Nasdaq +0.19 per cent; S&P/TSX +0.02 per cent
Equities:
Hong Kong's Hang Seng -0.21 per cent
Shanghai composite index +1.39 per cent
Japan's Nikkei +0.29 per cent
London's FTSE 100 +0.14 per cent
Germany's DAX +0.98 per cent
France's CAC 40 +0.63 per cent
Stoxx 600 +0.37 per cent
Commodities:
WTI crude oil (Nymex Jan) +0.41 per cent at $76.09 (U.S.) a barrel
Natural gas (Nymex Jan) -0.07 per cent at $4.30 (U.S.)
Gold (Comex Feb) -0.20 per cent at $1,194.00 (U.S.) an ounce
Copper (Comex Mar) unch at $3.01 (U.S.) a pound
Currencies:
Canadian dollar at 88.68 (U.S.), up 0.0008
U.S. dollar index up at 88.16
Bonds:
U.S. 10-year Treasury yield 2.29 per cent, down 0.02
ECONOMIC INDICATORS:
Canada retail sales for September rose 0.8 per cent from August, ahead of estimates of 0.5 per cent. But the rise was driven almost entirely by the auto sector. Excluding that, sales were flat.
U.S. real GDP for the third quarter rose 3.9 per cent, according to a second reading today. That was higher than the consensus estimate of 3.3 per cent, and ahead of the first reading of 3.5 per cent.
S&P Case-Shiller Home Price Index for September rose 4.9 per cent from a year earlier, a little stronger than the 4.6 per cent that was expected. Also being released is the FHFA House Price Index.
(10 a.m. ET) U.S. Conference Board Consumer Confidence Index. It's expected to come in at 95.8.
STOCKS TO WATCH:
Reitmans (Canada) announced that it has initiated a plan to enhance profitability and will close its 107 Smart Set stores over the next 12 to 18 months.
Valeant Pharmaceuticals International announced that it has received approval from the U.S. Food and Drug Administration for Onexton, an acne treatment.
Wal-Mart Stories' chief merchandising officer will announce his departure just days before Black Friday, according to the Wall Street Journal.
BlackBerry Ltd. is offering to pay iPhone users as much as $550 to switch to a square-screened BlackBerry Passport.
Alimentation Couche-Tard reported Q2 adjusted EPS of 55 cents (Canadian) vs. the 56 cents Street estimate.
Tiffany reported Q3 adjusted EPS of 76 cents (U.S.) vs. the 77 cents Street estimate.
Other earnings today include: Tecsys; Campbell Soup; Hewlett-Packard; Hormel Foods; TiVo.
ANALYST ACTIONS:
Canaccord Genuity hiked its price target on Hudson's Bay to $29 (Canadian) from $21 and reiterated a "buy" rating. RBC raised its target to $28 from $25 and reiterated an "outperform" rating.
RBC Dominion Securities raised its price target on homebuilder Lennar by 14 per cent to $54 (U.S.).
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Louis CK on risk management.
Are low interest rates responsible for high stock valuations?
The smart way to think about wild markets.
What's a CEO really worth? Too many companies simply don't know.
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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.
Darcy Keith