Futures Slightly Higher On Yen Weakness
U.S. equity futures rose slightly in early pre-market trade
although the story was all about the yen overnight. The yen
continued to weaken against the dollar overnight as the USD/JPY
rose above 101 on new reports that Japanese citizens are starting
to buy foreign assets, a key sign that the yen devaluation is
working and is sustainable.
In other news around the markets:
Germany's trade balance was reported as better than expected at
17.6 billion euros vs. the forecast of 16.5 billion euros in March.
However, the data represents a drop from February's upwardly
revised 17.7 billion euros. An investor group led by Carl Icahn and
Southeastern Asset Management are offering an alternative buyout
solution to Dell's (NASDAQ:
) woes. The two are offering $12 per share to current investors
with the option for them to also keep their stock. Bloomberg
reported overnight that Yahoo! (NASDAQ:
) is looking to buy Hulu to add video services to its platform.
S&P 500 futures rose 1.7 points to 1,626.30. The EUR/USD was
lower at 1.3012. Spanish 10-year government bond yields fell 2
basis points to 4.17 percent. Italian 10-year government bond
yields fell 3 basis points to 3.85 percent. Gold fell 1.37 percent
to $1,448.50 per ounce.
Asian shares were higher led by Japanese stocks as the yen
continued to weaken, boosting hopes that Japan's easing efforts
will work. The Japanese Nikkei Index rose 2.93 percent and the
Shanghai Composite Index rose 0.62 percent while the Hang Seng
Index gained 0.47 percent. Also, the Korean Kospi fell 1.75 percent
and Australian shares gained 0.15 percent.
European shares were also higher overnight on the back of Asian
strength. The Spanish Ibex Index rose 0.34 percent and the Italian
FTSE MIB Index rose 1.23 percent. Meanwhile, the German DAX gained
0.53 percent and the French CAC 40 added 0.51 percent while U.K.
shares gained 0.34 percent.
Commodities were lower overnight with the key theme being dollar
strength weighing on commodities broadly. WTI Crude futures fell
0.73 percent to $95.69 per barrel and Brent Crude futures fell 0.44
percent to $104.01 per barrel. Copper futures rose marginally by
0.04 percent to $334.20 per pound. Gold was lower and silver
futures fell 1.13 percent to $23.64 per ounce.
Currency markets showed broad dollar strength overnight, not
just against the yen, as dollar strength continued as the major
theme from Thursday's trading. The EUR/USD was lower at 1.3012 and
the dollar rose against the yen to 101.24. Overall, the Dollar
Index rose 0.18 percent on strength against the yen, the Swiss
franc, the pound, the euro, and the Canadian dollar.
Earnings Reported Yesterday
Key companies that reported earnings Thursday include:
) reported first quarter EPS of $5.76 vs. $5.27 expected. However,
the company slashed Q2 guidance to $8.87-$9.45 EPS vs. the forecast
of $9.58 per share. NVIDIA (NASDAQ:
) reported first quarter EPS of $0.18 vs. $0.15 on revenue of
$954.7 million vs. $940.7 million expected. Apache (NYSE:
) reported first quarter EPS of $2.02 vs. $2.21 expected and
announced a 30 million share buyback program.
Stocks moving in the pre-market included:
) shares fell 2.73 percent pre-market on the guidance cut. Dell
) shares rose 1.5 percent pre-market on the Icahn news. J.P. Morgan
) shares declined 1.04 percent pre-market after the state of
California accused the company of illegal debt collection
) shares rose 7.19 percent pre-market after the company reported
strong April same-store-sales and raised Q1 EPS guidance to
$0.68-$0.69 vs. the forecast of $0.56.
Notable companies expected to report earnings Friday
Horizon Pharmaceuticals (NASDAQ:
) is expected to report a first quarter loss of $0.35 per share vs.
a loss of $0.98 per share a year ago. Sketchers (NYSE:
) is expected to report first quarter EPS of $0.19 vs. a loss of
$0.07 per share a year ago. ArcelorMittal (NYSE:
) is expected to report a first quarter loss of $0.05 vs. EPS of
$0.01 a year ago. Silver Wheaton (NYSE:
) is expected to report first quarter EPS of $0.40 vs. $0.41 a year
On the economics calendar Friday, Chicago Fed President Charles
Evans and Fed Chairman Ben Bernanke are set to speak followed by
Kansas City Fed President Esther George. In addition, the Canadian
employment report and the ECRI Weekly report are due out. Early
Monday, Chinese fixed asset investment, industrial production, and
retail sales are all due out.
Good luck and good trading.
to view Benzinga's Market Wrap for Thursday, May 9.
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