Futures Rise On Global Gains
U.S. equity futures rose slightly in early pre-market trade
following gains around the world. The Japanese Nikkei Index rose
overnight despite the yen remaining strong in volatile trading.
In other news around the markets:
U.S. equity futures rallied into the close Thursday and closed near
session highs after the Wall Street Journal's Fed watcher John
Hilsenrath published a piece saying that the Fed is unlikely to
raise rates anytime soon, even if they taper. He also warned that
tapering still seems like it will begin in the fourth quarter.
European total employment fell 0.5 percent in May, worse than the
expected 0.2 percent drop. Employment had declined 0.3 percent in
April. Eurozone inflation continued to drag along at low levels in
May as the CPI rose 0.1 percent in the month, in line with
expectations. The CPI rose 1.2 percent from a year ago, also in
line with expectations, although well below the unofficial target
of 2 percent inflation. S&P 500 futures traded up 1 point to
1,637.75. The EUR/USD was lower at 1.3324. Spanish 10-year
government bond yields declined 8 basis points to 4.54 percent.
Italian 10-year government bond yields also declined 8 basis points
to 4.27 percent. Gold rose 0.3 percent to $1,382.00.
Asian shares were mostly higher overnight, led by gains in Japan
on the back of the rally in U.S. stocks. The Japanese Nikkei 225
Index rose 1.94 percent and the Topix Index gained 1.18 percent. In
Hong Kong, the Hang Seng Index rose 0.39 percent while the Shanghai
Composite Index gained 0.65 percent. Also, the Korean Kospi rose
0.35 percent and Australian shares rose 2.04 percent.
European shares were mostly higher in early trade following
stronger global markets. The Spanish Ibex Index rose 0.55 percent
while the Italian FTSE MIB Index slipped 0.07 percent. Meanwhile,
the German DAX rose 0.76 percent and the French CAC 40 Index 0.47
percent while U.K. shares gained 0.58 percent.
Commodities were mostly higher overnight as the dollar weakened
except for against the yen. WTI Crude futures rose 0.26 percent to
$96.94 per barrel and Brent Crude futures gained 0.73 percent to
$104.25 per barrel. Copper futures ticked higher overnight by 0.53
percent to $320.20 per pound. Gold was higher and silver futures
rose 0.5 percent to $21.69 per ounce.
Currency markets were on the move overnight as yen and dollar
strength continued to be the common themes. The EUR/USD was lower
at 1.3324 and the dollar fell against the yen by 0.44 percent to
94.95. Overall, the Dollar Index rose 0.17 percent on strength
against the euro, the pound, and the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Thursday include:
Casey's General Stores (NASDAQ:
) reported fourth quarter EPS of $0.60 vs. $0.62 expected on
revenue of $1.81 billion vs. $1.83 billion expected. Restoration
) reported first quarter EPS of $0.06 vs. $0.04 on revenue of
$301.3 million vs. $299.13 million. The company also issued strong
second quarter guidance above analyst estimates and raised full
year guidance above the street's forecasts. Smith and Wesson
) reported preliminary fourth quarter EPS of $0.44 vs. $0.40
expected on revenue of $179 million vs. $170.6 million expected.
The company also announced a debt swap to exchange existing debt
for new debt with lower coupon rates which would amount to a $25
million cash inflow for the company as well as a new $100 million
share buyback. Rentrak (NASDAQ:
) reported a fourth quarter loss of $0.17 per share vs. an expected
lsos of $0.03 per share on revenue of $28.52 million vs. $27.58
Stocks moving in the pre-market included:
Smith and Wesson (NASDAQ:
) shares popped 4.09 percent after-hours following the earnings
release and the announcement of the buyback of 17 percent of the
company's market cap. Casey's General Stores (NASDAQ:
) shares declined 2.07 percent pre-market following the earnings
miss. Echo Therapeutics (NASDAq:
) shares declined 3.46 percent pre-market as the company priced a
4.025 million share offering at $2.70 per share.
Notable companies expected to report earnings Friday
NGL Energy Partners (NYSE:
) is expected to report fourth quarter EPS of $1.03 vs. $0.73 a
year ago. Smithfield Foods (NYSE:
) is expected to report fourth quarter EPS of $0.43 vs. $0.43 a
On the economics calendar Friday, the U.S. current account and
PPI inflation data are due out followed by TIC flows, capacity
utilization, industrial production, and the Reuters/University of
Michigan Consumer Sentiment Index.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of yesterday's market action, read Benzinga's daily
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