Futures Rise Heading Into the Weekend
U.S. equity futures rose slightly in early pre-market trade
heading into the weekend after a week marked by small moves in
equities in both directions. Stocks look set to test all-time highs
again in Friday's session if futures can hold gains into the
In other news around the markets:
The European Union reported EU auto sales rose 1.8 percent in
April, the first monthly gain in over 18 months. Japanese Machine
Orders rose a whopping 14.2 percent in March, much better than the
3.2 percent expected gain. However, the data is extremely volatile
and may not be a clear sign that stimulus policies are working just
yet. San Francisco Fed President John Williams, a non-voting member
of the FOMC this year, spoke yesterday saying that it may already
be time for the Fed to begin tapering its bond purchases. Other Fed
officials hinted they may first slow purchases of mortgage backed
securities to prevent a new housing bubble. S&P 500 futures
rose 4.4 points to 1,652.50. The EUR/USD was flat at 1.2882.
Spanish 10-year government bond yields fell 2 basis points to 4.29
percent. Italian 10-year government bond yields fell 1 basis point
to 3.97 percent. Gold fell 0.92 percent to $1,374.10 per ounce.
Asian shares were mostly higher overnight following the Japanese
data. The Japanese Nikkei Index rose 0.67 percent. Also, the Korean
Kospi gained 0.79 percent and Australian shares added 0.29
European shares mixed overnight with moves remaining tepid
following the auto sales data. The Spanish Ibex Index rose 0.08
percent and the Italian FTSE MIB Index added 0.17 percent.
Meanwhile, the German DAX fell 0.08 percent and the French CAC 40
rose 0.15 percent while U.K. shares added 0.11 percent.
Commodities were mixed overnight with most metals continuing
losses following the recent dollar strength. WTI Crude futures fell
0.09 percent to $95.07 per barrel and Brent Crude futures rose 0.12
percent to $103.80 per barrel. Copper futures rose 0.55 percent to
$331.25, reversing two days of strong losses. Gold was lower and
silver futures declined 1.01 percent to $22.43 per ounce.
Currency markets were on the move as the dollar was erasing some
earlier gains heading into the U.S. session but still remained
stronger against most partners. The EUR/USD was flat at 1.2882 and
the dollar rose against the yen to 102.36. Overall, the Dollar
Index gained 0.33 percent on strength against the Canadian dollar,
the pound, and the yen.
Earnings Reported Yesterday
Key companies that reported earnings Thursday include:
) reported first quarter EPS of $0.42 vs. $0.45 expected on revenue
of $570.4 million vs. $583.4 million expected. Dell (NASDAQ:
) reported first quarter EPS of $0.21 vs. $0.35 expected on revenue
of $14.1 billion vs. $13.52 billion expected. J.C. Penney (NYSE:
) reported a first quarter loss of $1.31 per share vs. a loss of
$0.86 per share expected on revenue of $2.63 billion vs. $2.7
billion expected. Nordstrom (NYSE:
) reported first quarter EPS of $0.73 vs. $0.76 on revenue of $2.75
billion vs. $2.8 billion expected. Kohls (NYSE:
) reported first quarter EPS of $0.66 vs. $0.58 on revenue of $4.2
billion vs. $4.29 billion expected. Sina (NASDAQ:
) reported first quarter EPS of $0.02 vs. an expected loss of $0.03
per share on revenue of $121.3 million. Wal-Mart (NYSE:
) reported first quarter EPS of $1.14 vs. $1.15 on revenue of
$114.19 billion vs. $116.42 billion but said that trends in the
first half of May saw a marked improvement over the first four
months of the year.
Stocks moving in the pre-market included:
J.C. Penney (NYSE:
) shares declined 3.03 percent pre-market following the weaker than
expected earnings report. Autodesk (NASDAQ:
) shares declined 6.23 percent pre-market following its weaker than
expected earnings. Nordstrom (NYSE:
) shares declined 3.32 percent pre-market on its weaker than
expected earnings even though the company affirmed Q2 guidance.
United States Steel (NYSE:
) shares rose 1.01 percent pre-market as CEO John Surma said the
company is divesting unprofitable businesses to focus on key
business lines to return to profitability.
Notable companies expected to report earnings Friday
Donaldson Company (NYSE:
) is expected to report third quarter EPS of $0.49 vs. $0.46 a year
ago. Stage Stores (NYSE:
) is expected to report first quarter EPS of $0.09 vs. $0.05 a year
On the economics calendar Friday, consumer sentiment and leading
indicators are due out followed by the ECRI weekly index. Also, the
Fed's Naryana Kocherlakota is set to speak. Over the weekend, Ben
Bernanke is speaking on Saturday and could talk about Fed
Good luck and good trading.
to view Benzinga's Market Wrap for Thursday, May 16.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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