Futures Lower On Weak European Economic Data
U.S. equity futures lower in early pre-market trade on a batch
of weak economic data out of the eurozone. Although most of the
weakness in the data points was expected, the data, including
unemployment statistics and German retail sales, pointed to a
continued and protracted recession in the eurozone and placed more
pressure on the European Central Bank to continue to support the
economy ahead of its next interest rate decision next week.
In other news around the markets:
Yen strength dominated overnight on the back of strong economic
data out of Japan as the USD/JPY rate fell below 100.50 to as low
as 100.30. The pair recently traded above 103. The eurozone's
unemployment rate rose to another record level in April as the
unemployment rate rose to 12.2 percent from 12.1 percent
previously, in line with expectations. Notable weakness was seen in
the Italian unemployment report which drove shares lower in Europe.
The bidding war for Clearwire (NASDAQ:
) continues as Dish Networks (NASDAQ:
) increased its bid for the company to $4.40 per share, 29 percent
more than Sprint's (NYSE:
) bid. The bid includes the just over 50 percent of Clearwire owned
by Sprint. S&P 500 futures fell 11.3 points to 1,642.30. The
EUR/USD was lower at 1.2986. Spanish 10-year government bond yields
fell 1 basis point to 4.35 percent. Italian 10-year government bond
yields fell 2 basis points to 4.1 percent. Gold rose 0.23 percent
to $1,415.20 per ounce.
Asian shares were mixed overnight as Japanese shares recovered
some of its large Thursday losses. The Japanese Nikkei Index rose
1.37 percent and the Shanghai Composite Index lost 0.73 percent
while the Hang Seng Index declined 0.41 percent. Also, the Korean
Kospi rose 0.05 percent and Australian shares declined 0.08
European shares traded mostly lower overnight following some
weak economic data. The Spanish Ibex Index declined 1.31 percent
and the Italian FTSE MIB Index fell 1.04 percent. Meanwhile, the
German DAX declined 1.02 percent and the French CAC 40 lost 1.16
percent as U.K. shares fell 0.99 percent.
Commodities were mostly lower overnight save for gold on global
growth fears. WTI Crude futures fell 0.74 percent to $92.92 per
barrel and Brent Crude futures declined 0.56 percent to $101.62 per
barrel. Copper futures declined 0.6 percent to $329.55 per pound on
continued supply concerns. Gold was higher and silver futures
declined 0.13 percent to $22.66 per ounce.
Currency markets saw yen strength overnight but otherwise the
dollar was strong against other major partners. The EUR/USD was
lower at 1.2986 and the dollar declined against the yen to 100.62.
Overall, the Dollar Index rose 0.27 percent on strength against the
Canadian dollar, the euro, the pound, and the swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Thursday include:
Big Lots (NYSE:
) reports first quarter EPS of $0.61 vs. $0.61 expected on revenue
of $1.31 billion vs. $1.32 billion expected. Costco (NYSE:
) reported third quarter EPS of $1.04 vs. $1.03 on revenue of
$23.55 billion vs. $24.21 billion expected. Guess? Inc. (NYSE:
) reported first quarter EPS of $0.14 vs. $0.08 expected on revenue
of $548.9 million vs. $550.06 million expected. Joy Global (NYSE:
) reported second quarter EPS of $1.73 vs. $1.58 expected on
revenue of $1.36 billion vs. $1.28 billion expected. Palo Alto
) reported third quarter EPS of $0.06 vs. $0.05 expected on revenue
of $101.3 million vs. $103.46 million expected.
Stocks moving in the pre-market included:
Palo Alto Networks (NYSE:
) shares declined 14.97 percent pre-market after its sales forecast
missed estimates. Guess? Inc.(NYSE:
) shares rose 10.7 percent pre-market after the company beat
earnings estimates and guidance also beat estimates.
) shares declined 1.64 percent on little news. The stock went
ex-dividend earlier this week.
Notable companies expected to report earnings Friday
) is expected to report first quarter EPS of $0.87 vs. $0.98 a year
On the economics calendar Friday, the personal income and
outlays report is expected followed by the Chicago PMI and Michigan
consumer sentiment. Also, the Fed's Sandra Pinalto is set to speak.
In addition, the Canadian GDP report for the first quarter is set
to be released. Later tonight, the Chinese Manufacturing PMI is due
Good luck and good trading.
to view Benzinga's Market Wrap for Thursday, May 30.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information you
need to invest better today.
Click here to start your 14 Day Trial of Benzinga