Benzinga Market Primer: Monday, July 1

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Futures Rise Despite Weak China Data

U.S. equity futures rose in early pre-market trade despite weak manufacturing data out of China. The official manufacturing PMI fell to a four-month low of 50.1 in June from 50.8 in May, in line with expectations. However, the HSBC manufacturing PMI, which surveys smaller companies who are more likely to be hit by the recent liquidity crunch, dropped to a nine-month low of 48.2, below the flash reading and estimate of 48.3 and also below May's 49.2.

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In other news around the markets:

The eurozone's manufacturing PMI unexpectedly showed less contraction than expected in June, rising to 48.8 from 48.7 in May on expectations of a flat reading. Notably, Spain's manufacturing sector improved a flat reading of 50 in the month from 48.1, better than the forecast 48.5, Italy and France posted strong figures despite slight weakness in Germany. Onyx Pharmaceuticals (NASDAQ: ONXX ) confirmed Sunday night that the company had rejected a takeover bid from Amgen (NASDAQ: AMGN ) for $120. Shares closed Friday at $86.82. The eurozone's unemployment rate dropped in May to 12.1 percent, below the expected 12.3 percent. Further, April's figure was revised downwards to 12.0 percent from 12.2 percent, easing the currency bloc's unemployment woes. S&P 500 futures gained 4.5 points to 1,603.80. The EUR/USD was higher at 1.3051. Spanish 10-year government bond yields rose 1 basis point to 4.77 percent. Italian 10-year government bond yields rose 1 basis point to 4.55 percent. Gold gained 1.39 percent to $1,240.70 per ounce.

Asian Markets

Asian shares were mostly higher overnight save for Australian shares while Hong Kong's market was closed for the day. The Japanese Nikkei 225 Index gained 1.28 percent on strong economic data while the Topix Index gained 1.49 percent. In China, the Shanghai Composite Index rose 0.81 percent and the CSI 300 Index gained 0.58 percent. Also, the Korean Kospi fell 0.41 percent and Australian shares declined 1.92 percent.

European Markets

European shares were mixed following better than expected manufacturing data as markets await the European Central Bank's and the Bank of England's much anticipated interest rate decisions on Thursday. The Spanish Ibex Index fell 0.15 percent and the Italian FTSE MIB Index gained 0.17 percent. Meanwhile, the German DAX fell 0.59 percent and the French CAC 40 Index dropped 0.28 percent while U.K. shares gained 0.06 percent.

Commodities

Commodities were mostly stronger overnight, boosted by a weakening of the dollar. WTI Crude futures rose 0.02 percent to $96.58 per barrel and Brent Crude futures gained 0.13 percent to $102.29 per barrel. Copper futures bounced sharply, rising 1.64 percent to $310.75 per pound. Gold was higher sharply and silver futures gained 0.87 percent to $19.64 per ounce.

Currencies

Currency markets were on the move overnight as the yen and the dollar led declines, showing a slight risk-on tone. The EUR/USD was higher at 1.3051 and the dollar gained against the yen by 0.45 percent to 99.59. Overall, the Dollar Index fell 0.1 percent on weakness against the euro, the pound, and the Canadian dollar.

Earnings Reported Yesterday

Key companies that reported earnings Friday include:

AZZ Inc. (NYSE: AZZ ) reported first quarter EPS of $0.57 vs. 0.63 expected on revenue of $183.2 million vs. $197.08 million expected. Blackberry (NASDAQ: BBRY ) reported a first quarter loss of $0.13 vs. EPS of $0.08 expected on revenue of $3.07 billion vs. $3.37 billion expected. Also, gross margins fell a full six percentage points and smartphone shipments below expectations while cash flow from operations rose and so did the total cash position. Emmis Communication (NASDAQ: EMMS ) reported first quarter EPS of $0.08 on revenue of $50.6 million. The Finish Line (NYSE: FINL ) reported first quarter EPS of $0.20 vs. $0.16 expected on revenue of $351.1 million vs. $344.22 million expected.

Pre-Market Movers

Stocks moving in the pre-market included:

Onyx Pharmaceuticals (NASDAQ: ONXX ) shares gained 46.28 percent to $127.00 pre-market after the company received and rejected a takeover offer from Amgen (NASDAQ: AMGN ) for $120 per share. Hewlett-Packard (NYSE: HPQ ) shares rose 0.6 percent pre-market on a positive recommendation from Barron's on the stock.

Earnings

Notable companies expected to report earnings Monday include:

MSC Industrial (NYSE: MSM ) is expected to report third quarter EPS of $0.98 vs. $1.10 a year ago on revenue of $637.07 million vs. $611.97 million a year ago. Shulman A Inc. (NASDAQ: SHLM ) is expected to report third quarter EPS of $0.65 vs. $0.69 a year ago on revenue of $576.1 million vs. $569.11 million a year ago.

On the economics calendar, the Markit Manufacturing PMI and the ISM Manufacturing Index are due out as well as construction spending data. Also, New York Fed President William Dudley is expected to speak at 8 am eastern and the Treasury will hold its weekly 3- and 6-month bill auctions. Overnight, the Reserve Bank of Australia's interest rate decision is expected as well as eurozone PPI.

Good luck and good trading.

Tune into Benzinga's PreMarket Info show with Dennis Dick and Joel Elconin here .

For a recap of Friday's market action, read Benzinga's daily market wrap .

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Bonds , Commodities , Futures , International

Referenced Stocks: AMGN , EMMS , FINL , ONXX , SHLM

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