Futures Lower After Weak Japan Data
U.S. equity futures traded lower in early pre-market trade
following a much weaker than expected GDP report out of Japan. With
little data out today in the U.S. and thin trading volumes due to
the time of the year, volatile trading could be on tap.
In other news around the markets:
Japan's economy grew 2.6 percent in the second quarter from a year
ago, much worse than the forecast of 3.6 percent and below the
downwardly revised prior reading of 3.8 percent. However, inflation
was reported as higher than expected in the release. The Bundesbank
issued a report over the weekend citing that Greece may need a
third bailout after the German elections in September. In order to
prop up the Chinese economy, the Agricultural Bank of China made a
huge loan to Shanghai, roughly 12.5 percent of the city's GDP, to
help fund the building of a Disneyland. S&P 500 futures fell
10.7 points to 1,675.50. The EUR/USD was lower at 1.33. Spanish
10-year government bond yields were flat at 4.49 percent. Italian
10-year government bond yields were flat at 4.19 percent. Gold rose
1.07 percent to $1,326.30 per ounce.
Asian shares were mixed overnight as Chinese shares rallied on
the stealth stimulus of the large loan while Japanese shares fell
on the bad GDP report. The Japanese Nikkei 225 Index fell 0.7
percent and the Topix Index dropped 0.55 percent. In Hong Kong, the
Hang Seng Index gained 2.13 percent and the Shanghai Composite
Index rose 2.39 percent in China. Also, the Korean Kospi gained
0.22 percent and Australian shares rose 1.06 percent.
European shares were lower as the euro dropped on fears that a
new fight was set over a third Greek bailout later this year. The
Spanish Ibex Index fell 0.35 percent and the Italian FTSE MIB Index
dropped 0.7 percent. Meanwhile, the German DAX fell 1.12 percent
and the French CAC 40 Index declined 0.67 percent while U.K. shares
fell 0.53 percent.
Commodities were mixed as precious metals gained on hopes that
the Fed will put off tapering the face of weakening global growth
and slowing inflation. WTI Crude futures fell 0.08 percent to
$105.88 per barrel and Brent Crude futures fell 0.51 percent to
$107.67 per barrel. Copper futures were roughly flat while gold was
higher and silver futures gained 2.54 percent to $20.93 per
Currency markets were on the move overnight as the dollar
gained. The EUR/USD was lower at 1.33 and the dollar rose against
the yen to 96.71. Overall, the Dollar Index gained 0.32 percent on
strength against the yen, the Swiss franc, the euro, the Canadian
dollar, and the British pound.
Earnings Reported Yesterday
Key companies that reported earnings Friday include:
Brookfield Asset Management (NYSE:
) reported second quarter EPS of $0.68 vs. $0.40 expected on
revenue of $5.17 billion vs. $4.66 billion expected. James River
Coal Company (NYSE:
) reported a second quarter loss of $1.04 vs. a loss of $1.33 per
share expected. Ebix (NASDAQ:
) reported second quarter EPS of $0.35 vs. $0.32 expected on
revenue of $51.0 million vs. $52.0 million. Health Management
) reported second quarter EPS of $0.07 vs. $0.16 expected on
revenue of $1.46 billion vs. $1.7 billion expected. Tutor Perini
) reported second quarter EPS of $0.32 vs. $0.37 expected on
revenue of $1.05 billion vs. $1.07 billion expected.
Notable companies expected to report earnings Monday
) is expected to report fourth quarter EPS of $0.55 vs. $0.55 a
year ago on revenue of $11.62 billion vs. $11.05 billion a year
ago. InterOil (NYSE:
) is expected to report a second quarter loss of $0.07 per share
vs. a loss of $0.66 per share a year ago on revenue of $261.35
million vs. $299.1 million a year ago. Buckeye Technologies (NYSE:
) is expected to report fourth quarter EPS of $0.56 vs. $0.66 a
year ago on revenue of $197.69 million vs. $224.94 million a year
ago. NQ Mobile (NYSE:
) is expected to report second quarter EPS of $0.20 vs. $0.14 a
year ago on revenue of $39.34 million vs. $19.96 million a year
On the economics calendar Monday, the weekly 3- and 6-month bill
auctions are due out ahead of the Treasury Budget Statement.
Overnight, the German ZEW Economic Sentiment Index and the eurozone
industrial production report are due out.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Friday's market action, read Benzinga's daily
market wrap .
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