U.S. equity index futures are slightly lower this morning. Futures responded to the ADP Payroll survey, frequently an early indicator of the monthly employment report to be released on Friday showed a 22,000 reduction in employment in the private sector. Consensus was a gain of 20,000.
More evidence of a recovery in commodity prices has surfaced. Belrussian Potash announced a 6% increase in potash prices. Demand for fertilizer once again is increasing.
Imperial Oil reported less than expected fourth quarter earnings. Consensus was $0.65 versus $0.76 per share last year. Actual was $0.55 per share. The decline in profitability by its refining and marketing division was notable. Look for refiners in North America to take action to increase profitability in their refining operations. Gasoline prices will move higher this spring.
Enbridge reported slightly less than consensus earnings. However, the company also announced a 15% increase in its dividend.
Pfizer is down 2% after reporting slightly lower than consensus fourth quarter earnings.
Time Warner reported higher than expected quarterly earnings and raised its dividend.
Goldman Sachs made several recommendation changes in the energy sector. Canadian Natural Gas, Occidental Petroleum and Petrobras were upgraded from Buy to Conviction Buy. Suncor was downgraded from Conviction Buy to Buy.
McDonalds added 1% after Goldman Sachs raised its rating from Buy to Conviction Buy.
Deutsche Bank initiated coverage on the gold sector. Kinross was rated a Buy with a target price of $21. Newmont was rated a Buy with a target price of $66.
Deutsche Bank upgraded United Parcel Services from Hold to Buy. Target price was raised from $67 to $70.
Walmart added 1% after Stifel Nicolaus raised its rating from Hold to Buy. Target price is $62.
UBS upgraded the Mining and Metals sector. Notable among upgraded stocks was Anglo American.
Don Vialoux, chartered market technician, is the author of a free
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