Futures Lower Ahead of GDP
U.S. equity futures traded lower in early pre-market trade ahead
of the key U.S. first quarter GDP report due out at 8:30 am
eastern. Economists surveyed by Bloomberg are expecting a growth
rate of 3.1 percent in the first quarter with the range of
estimates between 2.3-3.3 percent. This would be a staunch
improvement from the fourth quarter's 0.4 percent growth.
In other news around the markets:
The Bank of Japan released its updated economic forecasts at its
interest rate meeting overnight, estimating 2.9 percent growth for
fiscal year 2013 and 2014 vs. 2.3 percent previously and sees the
BoJ achieving 1.9 percent inflation by 2015 or 2016. The China MNI
Business Sentiment Index rose to 58.6 in April from 58.2 in March,
showing that businesses and managers are still rather optimistic
about the Chinese economy despite recent weak data. Archer Daniels
) increased its bid for Australian company Graincorp to $4.3
billion, making the deal a near certainty to go through according
to analysts. S&P 500 futures slid 5.5 points to 1,576.20. The
EUR/USD was flat at 1.3011. Spanish 10-year government bond yields
rose 5 basis points to 4.34 percent. Italian 10-year government
bond yields rose 7 basis points to 4.13 percent. Gold rose 0.03
percent to $1,462.50 per ounce, retracing nearly 50 percent of its
losses since its recent slide from above $1,600 per ounce to below
Asian shares were mostly lower overnight on disappointing
forecasts from the Bank of Japan as well as no increase in its
easing policy while inflation data showed that policy in Japan has
had no impact as of yet. The Japanese Nikkei Index fell 0.3 percent
and the Shanghai Composite Index fell 0.97 percent while the Hang
Seng Index rose 0.65 percent. Also, the Korean Kospi fell 0.36
percent while Australian shares declined 0.1 percent.
European shares gave back gains from earlier this week but
peripheral shares were still up more than 4 percent on the week.
The Spanish Ibex Index fell 0.94 percent while the Italian FTSE MIB
Index fell 0.71 percent. Meanwhile, the German DAX slid 0.63
percent while the French CAC 40 declined 1.12 percent and U.K.
shares fell 0.56 percent.
Commodities were mostly weaker overnight, giving back strong
gains from earlier this week driven by the weaker than expected
Japanese inflation data. WTI Crude futures fell 0.83 percent to
$92.86 per barrel and Brent Crude futures fell 0.62 percent to
$102.77 per barrel. Copper futures fell 0.57 percent to $322.40
after seeing a nice run this week from recent lows. Gold was
slightly higher and silver futures declined 0.34 percent to
Currency markets were rather quiet overnight save for yen
crosses as the yen strengthened on the back of the Bank of Japan
disappointment. The EUR/USD was flat at 1.3011 and the dollar fell
0.59 percent against the yen to 98.67. Overall, the Dollar Index
fell 0.07 percent on weakness against the yen, the Swiss franc and
Earnings Reported Yesterday
Key companies that reported earnings Thursday include:
) reported first quarter EPS of $0.18 vs. $0.09 on revenue of
$16.07 billion vs. $16.16 billion expected. However, second quarter
guidance was slightly weaker than expected. Biogen Idec (NASDAQ:
) reported first quarter EPS of $1.97 vs. $1.59 on revenue of $1.4
billion vs. $1.41 billion expected. Colgate-Palmolive (NYSE:
) reported in-line EPS of $1.32 on revenue of $4.32 billion vs.
$4.3 billion expected. Expedia (NASDAQ:
) reported first quarter EPS of $0.25 vs. $0.23 on revenue of $1.01
billion vs. $967.4 million estimate. Lear Corp. (NYSE:
) reported first quarter EPS of $1.30 vs. $1.09 on revenue of $3.95
billion vs. $3.68 billion expected. 3M (NYSE:
) reported first quarter EPS of $1.61 vs. $1.66 on revenue of $7.63
billion vs. $7.81 billion expected. Potash (NYSE:
) reported first quarter EPS of $0.63 vs. $0.61 on revenue of $2.1
billion vs. $1.85 billion expected. Starbucks (NASDAQ:
) reported in-line second quarter EPS of $0.48 on revenue of $3.56
billion vs. $3.58 billion expected. ExxonMobil (NYSE:
) reported first quarter EPS of $2.12 vs. $2.05 expected on revenue
of $108.8 billion vs. $119.83 billion expected.
Stocks moving in the pre-market included:
J.C. Penney (NYSE:
) rose 7.15 percent pre-market after George Soros reported a 7.9
percent stake in the company despite another executive leaving the
company. Amazon (NASDAQ:
) shares declined 3.2 percent pre-market following the weaker than
expected guidance. Expedia (NASDAQ:
) shares declined 5.34 percent pre-market after reporting better
than expected earnings. Archer Daniels Midland (NYSE:
) shares declined 0.36 percent after the company boosted its bid
for Australia's Graincorp to $4.3 billion.
Notable companies expected to report earnings Friday
) is expected to report first quarter EPS of $3.06 vs. $3.17 a year
ago. D.R. Horton (NYSE:
) is expected to report first quarter EPS of $0.19 vs. $0.13 a year
ago. V.F. Corp. (NYSE:
) is expected to report first quarter EPS of $2.18 vs. $1.94 a year
ago. Weyerhaeuser (NYSE:
) is expected to report first quarter EPS of $0.22 vs. $0.02 a year
On the economics calendar Friday, the first look at U.S. first
quarter GDP is expected as well as consumer sentiment data
Good luck and good trading.
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