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Before the bell: What today all Canadian investors need to know



Stocks

Futures on Wall Street changed very little Thursday yesterday, while world stocks recorded their record in their best January report after the Federal Reserve Bank proposed to the patient access to future rates growth. European foreign markets were positive after a mixed start after the report reported that German retail sales experienced the largest monthly decline in more than a decade. In Asia, the Fed's rally managed to boost its share in China and Japan, although a slim reading of China's factory activities was considered. At Bay Street, futures were stronger, gold prices higher, while oil remained stable.

The global MSCI index, based on shares in 47 countries, rose by 0.5 percent. For this month, the index is higher than 7 percent, the highest January earnings since the index started in 1988 and the best monthly statement since December 2015, according to Reuters. On Wednesday, the Fed kept interest rates stable, as expected, but also indicated a pause in its current stock equity campaign by lifting the promise of gradual future growth. The report helped move downwards to over 25,000 and led to a profit of 1.5 percent on S & P.

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"At the end of last year, the markets were becoming more and more nervous that the Fed was at the peak of a major political flaw by staying on its tourist path despite growing signs of weakness in the world economy," said Jasper Lawler, head of research at London Capital Group. "As a result, shares have greatly worsened that higher borrowing costs will damage the economy at a time when global growth is slowing down."

In the forefront of Thursday's meeting, revenue and the economy will come.

At Bay Street, investors have gained insight into the state of the Canadian economy. According to Canada's statistics, GDP fell by 0.1 percent in November, partly offset by a 0.3 percent increase in October. The fall in November was in line with market expectations. The report will be followed later in the day through comments by Bank of Canada Governor Carolyn Wilkins, who will speak at the Toronto Trade Council at 12:45. (ET).

"The key limiting factor is expected to be a Canadian post strike that shuts down rotating mail rows within a month on a rotating basis," RBC Chief Adviser Paul Ferley said on expectations for the November report. "Given the past interruption of postal strikes, we assume [about a] 1 per cent decline in warehousing, which alone will account for roughly half of the overall GDP decline we expect. "

Sales revenue Amazon.com announced after sales ended. Prior to opening, earnings are payable by companies including Mastercard Inc. and General Electric Co. among others. GE's shares rose 10 percent after the company reported quarterly revenue of $ 33.3 billion. GE also said that it basically reached a $ 1.5 billion settlement with the United States Department of Justice in investigating accounting practices.

In action before trading with shares of Facebook Inc. increased by more than 11.35 percent after the social media company reported a record profit. At the end of the year when controversial disputes occurred, Facebook said that sales in the fourth quarter of 2018 increased by 30 percent compared with the last three months of 2017 to $ 16.91 billion. Profit increased by 61 percent to $ 6.88 billion, while diluted earnings reached $ 2.38, surpassing analyst expectations. Facebook also said it has added one million new active users per day and four million in Europe in Canada and the United States.

Shares of Tesla Inc. meanwhile, fell nearly 5 percent after the company missed Wall Street's target profits and announced the departure of its CFO. With the exception of Tesla's shares, it gained $ 1.93 per share, and according to IBES data from Refinitiv, it was missing $ 2.20 per share. However, Tesla also promised profits in each quarter of this year.

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The overseas, pan-European STOXX 600 increased by 0.06%. Unilever PLC's shares fell by about 3 percent in the morning trading after consumer products company recorded lower sales in the last quarter than expected. The British FTSE 100 rose 0.60 percent. German DAX added 0.06 percent. CAC 40 France grew by 0.24 percent.

In Japan Japan's Nikkei added 1.06 percent. Wider Topix gained 1.08%, with Softbank Group shares up nearly 5%. Hang Seng from Hong Kong rose 1.08 percent. Shanghai Composite Index reached 0.35 percent.

Commodities

Oil prices were soon stable due to slower US crude oil stocks and the expected impact of US sanctions on Venezuelan output. Western Texas Intermediate had a daily range of $ 53.92 to $ 54.69. Brent crude oil prices ranged from 61.57 USD to 62.28 USD.

"The oil market has increased due to the imposition of Venezuela," said David Madden, market analyst with CMC Markets UK. "The South American country has experienced a significant drop in oil production over the past 20 years, but the prospect of stricter supply has made retailers come into relatively cheap energy."

He also said the US Energy Information Office report showed a weekly increase in oil supplies of 919,000 barrels, while gasoline stocks dropped by more than 2.23 million barrels. Merchants expected crude oil prices to grow by 1.8 million barrels.

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In other commodities, gold prices were higher and they were on the fourth monthly increase after the Wednesday Fed announced. Spot gold rose 0.2 percent to $ 1,322.26 per ounce. Since May 11, prices have risen to the highest value of $ 1,323.34. US gold futures rose nearly 1 percent to $ 1,322. Spot gold is about 3.1 percent this month. The decline in the US dollar after the Fed announced it would suspend raising rates also helped boost gold into a quarterly session.

"The weaker dollar is once again providing bullion gold, which exerts pressure on $ 1,320," OANDA analyst Craig Erlam said. "It comes just days after more than US $ 1,300 has been made since the beginning of this year."

He said that if gold broke $ 1,320, $ 1,340 would become another remarkable degree of resistance, "one that may also prove temporary if traders continue to bail for the dollar."

Currencies and bonds

The Canadian dollar has risen, but initially culminates when the Statscan report showed that the Canadian economy declined by 0.1 percent in November. Loonie, after the release of the report, reached half the daily spread of 76.01 US cents to 76.21 US cents. The decline was in line with market expectations and rose by 0.3 percent in October. Oil prices and weaker monetary incomes have been reflected in the recent strength of the loon, according to which the Canadian dollar this month led a package in terms of profits against the dollar.

"October now seems to have been an island in a storm for the Canadian economy because of a return to weakness in November," said CIBC chief economist Avery Shenfeld, who noted that a bank in Canada, like the Fed, is now looking for the next two quarters.

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"Real GDP declined by 0.1 percent, which corresponds to our forecast, but now it is linked to the flat period of August-September, which has been three of the last four months when performance has not been sufficient."

The US dollar index reached the three-week minimum of 95.16.

For loonie, a key event for the loons will be the morning release of the news bulletin on GDP. Mr. Cole says the RBC expects a monthly decline of 0.1 percent after October profit by 0.3 percent. The impact of the strike in Canada in November should reduce growth by 0.1 percentage point. The soft volume of wholesale and production sales per month will also likely pay, he said. Right now, the RBC is looking for quarterly annual growth of 1.1 percent "with a slight moderate risk of decline."

In the bonds, US Treasury yields fell to the Fed's cautious note. The 10-year US dollar yield was down by 2,665%. The 30-year banknote yield was also lower by 3,022%.

Actions are set to show action

Baker Hughes, General Electric Co.'s oil and gas company announced Thursday a quarter-on-quarter increase of 85 percent, boosted by demand for oil services. The company reported a net profit of US $ 120 million or 26 US cents per share in the fourth quarter ending December 31, from $ 65 million or 15 US cents a share a year ago.

Mastercard Inc. reported a 33 percent increase in adjusted quarterly profit as it processed more transactions during the holiday season. Adjusted net income rose to US $ 1.6 billion or $ 1.55 a share in the fourth quarter ending December 31 from $ 1.2 billion or $ 1.14 a share a year earlier. Net revenue rose to $ 3.8 billion from $ 3.3 billion a year ago. Pre-trade stocks grew by almost 4%.

Charter Communications Inc. quarterly earnings estimates reached Thursday as the cable operator attracted more customers to its Internet services, which offset the decline in video subscribers. In the fourth quarter, ending on December 31, the company added 289,000 home customers.

Royal Dutch Shell said he will stick to spending discipline this year after 2018 gains jumped by more than a third to $ 21.4 billion, which is their highest since 2014. Anglo-Dutch oil company also witnessed a sharp rise in cash making, another sign, that cost savings since 2014, when demand for oil fell. Its shares grew by more than 4%.

Unilever PLC announced fourth quarter lower sales in the fourth quarter, hurt Argentina's inflation and volume growth in developed markets in its first series of results since the new CEO Alan Jope took over. Ben & Jerry's Dove Soybean and Ice Cream Company said fourth-quarter sales rose by 2.9 percent. Analysts on average expected 3.5 percent, showed a consensus forecast for the company.

Microsoft Corp.Azure cloud computing platform grew slower in December compared to the previous year. Azure, the product of Microsoft's flagship product, recorded a 76 percent increase in revenues in the last quarter of 2018, down from 98 percent a year earlier. Microsoft's total revenue rose 12.3% to $ 32.47 billion. Wall Street analysts expected sales of USD 32.51 billion on average, according to Refinitiv's IBES. Microsoft released its latest results after Wednesday's closing. The stock was less than 2% pre-trade.

Chemical industry company DowDuPont Inc. estimates a surprising drop in sales for the current quarter, which was hit by a decline in sales in its largest, thus reducing the share of the company's stock by 9 percent in pre-commercial trading. The company, made up of Dow Chemical and DuPont's chemical giants in September 2017, said it expects first-quarter revenue to fall by "one-point percentage points" without providing details. Analysts expected DowDupont to report revenue of $ 22.63 billion for the first quarter, 5% higher than in the previous quarter.

Intel Corp appointed Robert Swan's interim CEO to a permanent role on Thursday and also appointed a new interim CFO. Mr. Swan, 58, has been temporarily entrusted with the chips manufacturer since last June when Brian Krzanich left his top job after the investigation found he had a contractual relationship with an employee contrary to the company's policy.

Read more:

Thursday is small-cap stocks to track

Economic news

Canada's GDP fell by 0.1 percent in November.

Canadian producer prices declined by 0.7 percent in December, the second consecutive sharp month-on-month decline, mainly due to cheaper energy and oil products. Analysts in the Reuters survey predicted 0.2 percent growth in December following a 0.8 percent fall in November. The cumulative two-month decline was the largest since June and July 2017 when prices fell 1.1 percent and 1.4 percent.

The US Department of Labor said weekly claims for unemployment claims rose 53,000 last week to 253,000 from a 49-year low of 200,000 in the past week. The four-week average, which is less volatile, rose by 5,000 to 220,250, according to The Associated Press.

With Reuters and the Canadian Press

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