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.
Investor enthusiasm is alive and well after the S&P 500 topped the 1,800-point threshold last week. The difference on Monday, though, is that momentum has given way to optimism over the Iran accord struck on the weekend, limiting the country's nuclear ambitions.
Global stocks rose. In Europe, major indexes were up about 0.6 per cent. Japan's Nikkei 225 rose 1.5 per cent in overnight trading. And in futures activity, the Dow Jones industrial average was set for a 60-point pop at the start of trading, in less than two hours.
The commodities market showed a similar interest in the ramifications of the accord. Brent crude fell 1.6 per cent, retreating from a six-week high. The North American benchmark, West Texas Intermediate, fell about 1.3 per cent, to $93.60 (U.S.) a barrel. As for gold, it fell another $11 an ounce, to $1,232 – making it a potentially interesting day ahead for Canadian commodity producers.
Here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.34 per cent; Dow +0.39 per cent; Nasdaq +0.37 per cent; S&P Toronto +0.22 per cent
Hong Kong's Hang Seng -0.05 per cent
Shanghai composite index -0.47 per cent
Japan's Nikkei +1.54 per cent
London's FTSE 100 +0.33 per cent
Germany's DAX +1.05 per cent
France's CAC 40 +0.60 per cent
Commodities:
WTI crude oil (Nymex Jan) -1.27 per cent at $93.63 (U.S.) a barrel
Gold (Comex Dec) -1.00 per cent at $1,232.10 (U.S.) an ounce
Copper (Comex Dec) +0.03 per cent at $3.22 (U.S.) a pound
Currencies:
Canadian dollar at 94.74 (U.S.), vs. 95.02 at Friday's North American close.
U.S. dollar index up 0.23 at 80.88
Bonds:
U.S. 10-year Treasury yield 2.76 per cent, +0.006
ECONOMIC INDICATORS:
(10 a.m. ET) U.S. pending home sales index for October, forecast to rise 1.1 per cent after falling 5.6 per cent in September from August.
STOCKS TO WATCH:
BlackBerry has announced a major corporate executive shakeup. Chief marketing officer Frank Boulben and chief operating officer Kristian Tear will both leave the company and James Yersh will replace Brian Bidulka as chief financial officer. Shares are down 0.6 per cent in the premarket.
Hedge fund billionaire Eddie Lampert and chairman of Sears Holdings is exploring a possible sale of Sears Canada, the New York Post is reporting.
Saputo has raised its offer for Warrnambool Cheese & Butter Factory to $472-million (U.S.), which is above two rival bids for the Australian dairy producer.
Wal-Mart has named Doug McMillon to succeed Mike Duke as president and CEO, effective Feb 1.
J.C. Penney is down 3 per cent in the U.S. premarket after S&P Dow Jones Indices late Friday said the retailer would be leaving the S&P 500 index upon the close of trading Nov. 29 because of its much-smaller market cap.
ANALYST ACTIONS:
Goldman Sachs downgraded Campbell Soup to "neutral" from "buy" and cut its price target to $42 (U.S.) from $48.
Goldman Sachs upgraded Alcoa to "buy" from "neutral" and raised its price target to $11 (U.S.) from $8, saying its aluminum business is under-appreciated.
RBC Dominion Securities downgraded AOL to "sector perform" from "outperform" and maintained a $46 (U.S.) price target.
BMO Nesbitt Burns downgraded Deere & Co. to "market perform" from "outperform" and cut its price target to $84 (U.S.) from $95.
BMO Nesbitt Burns downgraded Kirkland Lake Gold to "underperform" from "market perform" and cut its price target to $2.50 (Canadian) from $5.
CIBC World Markets upgraded Pretivm Resources to "sector outperformer" from "sector performer" and kept an $8 (Canadian) price target.
Euro Pacific Canada upgraded Novadaq Technologies to "buy" from "hold" and raised its price target to $23 (U.S.) from $16.
Canaccord Genuity cut its price target on Martinrea International to $10.25 (Canadian) from $12.25 and maintained a "hold" rating.
Wells Fargo initiated coverage on Twitter with a "market perform" rating and a valuation range of $36-39 (U.S.).
THIS MORNING'S TOP INVESTING LINKS:
Large-caps can boost your portfolio at year-end.
A long-standing bear has thrown in the towel.
How Sony's Playstation taught a great trading lesson.
Why quantitative easing is likely going to be around for a while.
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
David Berman