Futures Slightly Higher as Global Shares Drop
U.S. equity futures traded slightly higher in early pre-market
trade despite weakness elsewhere around the world. Better than
expected manufacturing PMIs across the eurozone are helping to prop
assets despite sustained weakness in emerging markets ahead of what
Soc Gen this weekend called an impending "rout of emerging market
In other news around the markets:
The Eurozone Manufacturing PMI rose to 48.3 in May from 47.8 in
April on expectations of a flat reading with all major countries
reporting better than expected results in the report. However, it
still shows contraction in the manufacturing sector across Europe.
England's Manufacturing PMI was also released this morning and
showed further strength in the European economy as the PMI rose to
51.3 in May from an upwardly revised 50.2 in April on expectations
of a reading of 50.2. Protests in Turkey continued Monday as the
Lira fell against the dollar for a fifth day and 2-year note yields
climbed 39 basis points. Protesters took to the streets in major
cities such as Ankara and Istanbul in opposition of Prime Minister
Erdogan, whom they want to resign. S&P 500 futures rose 2.6
points to 1,631.60. The EUR/USD was higher at 1.3024. Spanish
10-year government bond yields rose 1 basis point to 4.45 percent.
Italian 10-year government bond yields rose 2 basis points to 4.17
percent. Gold rose 0.27 percent to $1,396.70 per ounce.
Asian shares traded mostly lower overnight as the Japanese
Nikkei Index recorded its fourth loss in eight trading days and has
lost some 17 percent over the span. The Nikkei declined 3.72
percent while the Shanghai Composite Index eked out a gain of 0.02
percent as the Hang Seng Index declined 0.49 percent. Also, the
Korean Kospi fell 0.57 percent and Australian shares lost 0.78
European shares traded lower in early trading but have bounced
off of the lows of the day following the stronger than expected PMI
reports across the continent. The Spanish Ibex Index declined 0.54
percent and the Italian FTSE MIB Index fell 0.76 percent.
Meanwhile, the German DAX lost 0.66 percent and the French CAC 40
declined 0.75 percent while U.K. shares lost 0.54 percent.
Commodities were mostly higher overnight on the back of the
stronger than expected Manufacturing PMI's and also as the dollar
weakened. WTI Crude futures were flat at $91.97 per barrel and
Brent Crude futures rose 0.16 percent to $100.15 per barrel. Copper
futures gained 1.35 percent to $333.70 per pound. Gold was higher
and silver futures rose 0.66 percent to $22.39 per ounce.
Currency markets saw some interesting moves overnight as the
dollar weakened and the yens strengthened. The EUR/USD was higher
at 1.3024 and the dollar fell against the yen to 100.34. Overall,
the Dollar Index fell 0.34 percent on weakness against the pound,
the euro, and the yen. Notably, the pound gained 0.44 percent
against the dollar to 1.5265 and the Aussie dollar saw particular
strength as it rose against the yen by 0.66 percent to 96.7610 and
against the greenback by 0.75 percent to 0.9643.
Earnings Reported Yesterday
Key companies that reported earnings Friday include:
) reported first quarter EPS of $0.94 vs. $0.87 expected on revenue
of $591.4 million vs. $605.71 million expected.
Stocks moving in the pre-market included:
WPX Energy (NYSE:
) shares declined 1.3 percent pre-market as Natural Gas prices
eased in early trading. Boeing (NYSE:
) shares rose 0.59 percent pre-market as the company announced over
the weekend that it has begun final assembly on the first 787-9
Dreamliner, the latest version of the plane, ahead of schedule.
Carnival Corporation (NYSE:
) shares declined 0.82 percent pre-market after a slew of
downgrades last week and on fears over the safety of the cruise
industry as a whole following a series of disasters.
Notable companies expected to report earnings Monday
ABM Industries (NYSE:
) is expected to report second quarter EPS of $0.33 vs. $0.30 a
year ago. Cracker Barrel(NASDAQ:
) is expected to report third quarter EPS of $0.94 vs. $0.86 a year
ago. SAIC (NYSE:
) is expected to report first quarter EPS of $0.26 vs. $0.35 a year
ago. Verint Systems (NASDAQ:
) is expected to report first quarter EPS of $0.52 vs. $0.53 a year
to view Benzinga's earnings expectations for the week of June 3!
On the economics calendar Monday, the Markit Manufacturing PMI
is due out as well as the ISM Manufacturing Index and Construction
Spending data. In addition, San Francisco Fed President John
Williams is set to speak and the Treasury is set to hold its weekly
3- and 6-month bill auctions. Overnight, the Reserve Bank of
)'s rate decision is due out and the British Construction PMI is
Good luck and good trading.
to view Benzinga's earning and economic outlook for the week of
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