Futures Sightly Higher on Economic Data
U.S. equity futures rose slightly in early pre-market trade
following the strong employment report from the U.S. and better
than expected services data from the EU. Notably, Japanese and U.K.
markets were closed overnight.
In other news around the markets:
To recap the employment report, the U.S. economy added 165 thousand
non-farm jobs and 176 thousand private sector jobs while the
unemployment rate unexpectedly fell and previous months data were
revised sharply higher. The eurozone's services sector contracted
less than expected in April as the eurozone Services PMI rose to
47.0 from 46.6 in March on expectations of a flat reading. Strength
was seen in Germany, France, and Italy in the report. Spain's
unemployment burden eased in April as the number of people claiming
unemployment unexpectedly fell 0.91 percent in April on
expectations of a gain. S&P 500 futures rose 0.5 points to
1,609.00. The EUR/USD was lower at 1.3106. Spanish 10-year
government bond yields fell 2 basis points to 4.02 percent. Italian
10-year government bond yields rose 2 basis points to 3.84 percent.
Gold rose 0.58 percent to $1,472.70 per ounce.
Asian shares were mostly higher overnight on the back of the
strong U.S. employment report. The Shanghai Composite Index rose
1.17 percent and the CSI 300 Index rose 1.31 percent while the Hang
Seng Index gained 0.99 percent. Also, the Korean Kospi fell 0.22
percent and Australian shares gained 0.52 percent.
European shares were mostly lower overnight in thin trading
following strong gains last week on the back of the ECB rate cuts
and the U.S. employment report. The Spanish Ibex Index fell 0.37
percent and the Italian FTSE MIB Index declined 0.56 percent.
Meanwhile, the German DAX declined 0.16 percent after reaching a
new all-time high last Friday and the French CAC 40 fell 0.27
Commodities were mostly higher overnight led by oil as natural
gas futures fell sharply. WTI Crude futures rose 0.66 percent to
$96.24 per barrel and Brent Crude futures rose 0.46 percent to
$104.67 after Israel launched two air strikes on Syria to target
Hizbollah weapons shipments from Iran. Natural Gas futures fell
0.77 percent to $4.01 per million BTU on warmer weather conditions.
Copper futures fell 0.08 percent to $331.20 on weaker than expected
retail sales and CapEx data in Australia. Gold was higher and
silver futures gained 0.44 percent to $24.12 per ounce.
Currency markets were rather quiet overnight as the yen
continued its decline. The EUR/USD was slightly lower at 1.3106 and
the dollar gained against the yen to 99.34. Overall, the Dollar
Index rose 0.08 percent on strength against the yen, the Swiss
franc, the pound, the euro, and the Canadian dollar.
Earnings Reported Yesterday
Key companies that reported earnings Friday include:
Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) reported first
quarter EPS (for the B shares) of $1.53 vs. $1.33 expected as
shares reached a new all-time high in the quarter. CBOE Holdings
) reported first quarter EPS of $0.50 vs. $0.44 on revenue of
$142.7 million vs. $135.87 expected. Moody's (NYSE:
) reported first quarter EPS of $0.97 vs. $0.85 on revenue of
$731.8 million vs. $718.01 million expected. Madison Square Garden
) reported third quarter EPS of $0.49 vs. $0.33 on revenue of
$412.4 million vs. $405.11 million expected. Weatherford
) reported first quarter EPS of $0.15 vs. $0.17 on revenue of $3.84
billion vs. $3.9 billion expected.
Stocks moving in the pre-market included:
Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shares rose 1.99
percent pre-market following the blowout earnings and comments from
CEO Warren Buffett that the board has already been told who he
would like as a potential successor to himself as CEO. Advanced
Micro Devices (NYSE:
) shares fell 1.39 percent after rising nearly 6 percent Friday.
) shares rose rose 0.39 percent after the strong release of Iron
Man 3. Newmont Mining (NYSE:
) shares rose 0.61 percent pre-market as gold prices rose.
Notable companies expected to report earnings Monday
) is expected to report first quarter EPS of $0.25 vs. $0.37 a year
ago. Anadarko Petroleum Corp. (NYSE:
) is expected to report first quarter EPS of $0.93 vs. $0.92 a year
ago. Sott's Miracle Grow (NYSE:
) is expected to report second quarter EPS of $2.00 vs. $2.15 a
year ago. Vornado Realty Trust (NYSE:
) is expected to report first quarter EPS of $1.89 vs. $1.82 a year
On the economics calendar Monday, ECB President Mario Draghi is
set to speak followed by a Treasury auction of 3- and 6-month
bills. Later, the TD Ameritrade Investor Movement Index is expected
to be released followed by a Treasury STRIPS auction. Overnight,
the RBA rate decision, French industrial production, and German
factory orders data are due out.
Good luck and good trading.
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