Futures Lower On Chinese Fears
U.S. equity futures traded slightly lower in early pre-market
trade after Asian shares on fears of a protracted slowdown in
China. Data released over the weekend spooked investors and sent
In other news around the markets:
The National Bureau of Statistics in Beijing reported that
industrial profits rose 6.3 percent in June from the June 2012,
well below May's rate of 15.5 percent. The slowdown in growth
partially reflects the liquidity crunch that hit the country in
June. Japan's retail sales report for the month of June missed
expectations sharply. Retail sales fell 0.2 percent in June from
May compared to the expected gain of 0.8 percent. A poll out of
Germany this weekend compiled by Enmid revealed that German
Chancellor Angela Merkel may be losing her majority in the upcoming
parliamentary elections. With elections in September a major risk
event for the eurozone, Merkel's party slipped below the opposition
in this poll, however accounting for errors in surveying, the data
basically shows a dead heat. S&P 500 futures fell 2.5 points to
1,684.10. The EUR/USD was higher at 1.3288. Spanish 10-year
government bond yields fell 1 basis point to 4.61 percent. Italian
10-year government bond yields fell 1 basis point to 4.39 percent.
Gold rose 0.65 percent to $1,330.50 per ounce.
Asian shares were mostly lower overnight on the back of the weak
economic data rom China and Japan. The Japanese Nikkei 225 Index
declined 3.32 percent and the Topix Index fell 2.61 percent. In
Hong Kong, the Hang Seng Index declined 0.41 percent while the
Shanghai Composite Index slipped 1.57 percent in China. Also, the
Korean Kospi fell 0.57 percent and Australian shares shed 0.07
European shares were mostly higher in early trade save for
Germany following the poll results. The Spanish Ibex Index rose
0.86 percent while the Italian FTSE MIB Index fell 0.06 percent.
Meanwhile, the German DAX declined 0.65 percent while the French
CAC 40 Index gained 0.32 percent and U.K. shares rose 0.4
Commodities were mixed overnight but had a negative tilt on
growth fears out of China. WTI Crude futures fell 0.37 percent to
$104.31 per barrel and Brent Crude futures fell 0.01 percent to
$107.16 per barrel. Copper futures fell 0.27 percent to $309.70 per
pound. Gold was higher and silver futures fell 0.03 percent to
$19.77 per ounce.
Currency markets were rather quiet overnight as the dollar
weakened. The EUR/USD was higher at 1.3288 and the dollar fell
against the yen to 97.88. Overall, the Dollar Index fell 0.14
percent on weakness against the yen, the pound, the euro, and the
Earnings Reported Yesterday
Key companies that reported earnings Friday include:
) reported second quarter EPS of $0.82 vs. $0.79 a year ago on
revenue of $4.69 billion vs. $4.54 billion expected. Newmont Mining
) reported second quarter EPS of $0.59 vs. $0.42 a year ago on
revenue of $2.00 billion vs. $2.08 billion ayear ago. Stanley Black
and Decker (NYSE:
) reported second quarter EPS of $1.21 vs. $1.19 a year ago on
revenue of $2.87 billion vs. $2.81 billion a year ago. Lear Corp.
) reported second quarter EPS of $1.62 vs. $1.37 a year ago on
revenue of $4.1 billion vs. $3.91 billion a year ago.
Stocks moving in the pre-market included:
) shares rose 0.71 percent as Bloomberg reported that the company
is close to a deal for Elan (NYSE:
). Elan rose 10.65 percent pre-market. Saks (NYSE:
) shares rose 4.83 percent pre-market as the New York Post reported
that Lord and Taylor Owner Hudson's Bay Co. is set to buy the
company for between $17-18 per share.
Notable companies expected to report earnings Monday
Express Scripts Holdings (NASDAQ:
) is expected tp report second quarter EPS of $1.10 vs. $0.88 a
year ago on revenue of $25.52 billion vs. $27.69 billion a year
ago. Anadarko Petroleum (NYSE:
) is expected to report second quarter EPS of $0.91 vs. $0.85 a
year ago on revenue of $3.57 billion vs. $3.22 billion a year ago.
Caesars Entertainment (NASDAQ:
) is expected to report a second quarter loss of $1.57 vs. a loss
of $1.93 a year ago on revenue of $2.18 billion vs. $2.17 billion a
year ago. Simon Property Group (NYSE:
) is expected to report second quarter EPS of $2.07 vs. $1.89 a
year ago on revenue of $1.24 billion vs. $1.19 billion a year ago.
) is expected to report second quarter EPS of $1.18 vs. $1.10 a
year ago on revenue of $1.16 billion vs. $1.03 billion a year ago.
On the economics calendar Monday, pending home sales are due out
ahead of the Dallas Fed Manufacturing Survey and the weekly 3- and
6-month bill auctions. Overnight, RBA Governor Glenn Stevens is set
to speak and the Spanish GDP report is 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 .
(c) 2013 Benzinga.com. Benzinga does not provide investment
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