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
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:
) confirmed Sunday night that the company had rejected a takeover
bid from Amgen (NASDAQ:
) 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 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 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 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.
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:
) reported first quarter EPS of $0.57 vs. 0.63 expected on revenue
of $183.2 million vs. $197.08 million expected. Blackberry (NASDAQ:
) 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:
) reported first quarter EPS of $0.08 on revenue of $50.6 million.
The Finish Line (NYSE:
) reported first quarter EPS of $0.20 vs. $0.16 expected on revenue
of $351.1 million vs. $344.22 million expected.
Stocks moving in the pre-market included:
Onyx Pharmaceuticals (NASDAQ:
) shares gained 46.28 percent to $127.00 pre-market after the
company received and rejected a takeover offer from Amgen (NASDAQ:
) for $120 per share. Hewlett-Packard (NYSE:
) shares rose 0.6 percent pre-market on a positive recommendation
from Barron's on the stock.
Notable companies expected to report earnings Monday
MSC Industrial (NYSE:
) 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:
) 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
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 .
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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