Futures Slightly Higher as G20 Agrees to Avoid Competitive
U.S. equity futures rose slightly in pre-market trading
following the release of a draft G20 statement. In the statement,
the G20 agreed to avoid using competitive devaluations as a tool of
policy, however the group refrained from singling out any
In other news around the markets:
Foreign Direct Investment in China rose faster than expected in
March, rising at a 5.1 percent annualized rate vs. the forecast 1.9
percent gain. Chinese home prices rose in 68 of 70 cities in March,
more than the 66 of 70 in February, showing that PBOC tightening is
not enough to restrain the booming property market. German
economists, in a report published overnight, cut their German GDP
forecast to 0.8 percent from 1.0 percent. Also, They forecast 1.9
percent growth in 2014 and about 2 percent HCP inflation over the
next two years. They are not in favor of a rate cut currently and
suggest that the banking regulator be outside the ECB. S&P 500
futures rose 2.9 points to 1,549.50. The EUR/USD was higher at
1.3055. Spanish 10-year government bond yields fell to 4.67 percent
from 4.68 percent. Italian 10-year government bond yields fell to
4.23 percent from 4.25 percent. Gold rose 0.65 percent to $1,386.70
Asian shares were mostly lower overnight after the G20 statement
release despite the statement not singling out Japan. The Japanese
Nikkei Index fell 1.22 percent and the Shanghai Composite Index
gained 0.17 percent while the Hang Seng Index declined 0.26
percent. Also, the Korean Kospi fell 0.24 percent and Australian
shares fell 1.6 percent.
European shares were mostly higher in early trade following some
strong bond auctions from France and Spain and on the German
economic forecasts. The Spanish Ibex Index rose 0.94 percent and
the Italian FTSE MIB Index rose 0.99 percent. Meanwhile, the German
DAX rose 0.69 percent and the French CAC rose 0.97 percent while
U.K. shares gained 0.37 percent.
Commodities were mostly higher overnight as oil bounced back
from its recent steep declines. WTI Crude futures rose 1.11 percent
to $87.40 per barrel and Brent Crude futures gained 1.36 percent to
$100.39 per barrel. Copper futures fell 1.08 percent to $315.20 per
pound on continued supply fears. Gold was higher and silver futures
rose 0.87 percent to $23.39 per ounce.
Currency markets were rather calm overnight after two days of
large moves in the overnight sessions. The EUR/USD was higher at
1.3055 and the dollar rose against the yen to 98.27. Overall, the
Dollar Index fell 0.15 percent on weakness against the euro, the
Canadian dollar, and the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
American Express (NYSE:
) reported first quarter EPS of $1.15 vs. $1.12 expected on revenue
of $7.88 billion vs. $8.05 billion expected. Bank of America (NYSE:
) reported first quarter EPS of $0.20 vs. $0.22 expected on revenue
of $23.85 billion vs. $23.5 billion expected. eBay (NASDAQ:
) reported adjusted EPS of $0.63 vs. $0.62 on revenue of $3.7
billion vs. expectations of $3.76 billion. Also, guidance was
reaffirmed while the street was looking for a guidance raise.
) reported first quarter EPS of $0.84 vs. $0.77 expected on revenue
of $1.34 billion vs. $1.3 billion expected.
Stocks moving in the pre-market included:
) shares fell 2.35 percent pre-market after the bottom line beat
and top line miss and the guidance miss. Carnival Corp. (NYSE:
) shares rose 1.87 percent pre-market after the company announced
new plans to invest in emergency preparedness protocols. SanDisk
) shares rose 1.31 percent pre-market following the earnings.
) shares rose 18.71 percent pre-market after the FDA Advisory
Committee recommended Breo for the treatment of COPD.
Notable companies expected to report earnings Thursday
The Blackstone Group (NYSE:
) is expected to report first quarter EPS of $0.51 vs. $0.44 a year
ago. Chipotle (NYSE:
) is expected to report first quarter EPS of $2.14 v.s $1.97 a year
ago. IBM (NYSE:
) is expected to report first quarter EPS of $3.05 vs. $2.78 a year
ago. Morgan Stanley (NYSE:
) is expected to report first quarter EPS of $0.58 vs. a loss of
$0.06 per share a year ago. Google (NASDAQ:
) is expected to report first quarter EPS of $10.69 vs. $10.08 a
year ago. Microsoft (NASDAQ:
) is expected to report first quarter EPS of $0.76 vs. $0.60 a year
ago. Pepsico (NYSE:
) is expected to report first quarter EPS of $0.71 vs. $0.69 a year
ago. UnitedHealth Group (NYSE:
) is expected to report first quarter EPS of $1.14 vs. $1.31 a year
ago. Union Pacific (NYSE:
) is expected to report first quarter EPS of $1.97 vs. $1.79 a year
On the economics calendar Thursday, initial jobless claims are
due out as well as the Philly Fed Survey, Leading Indicators, and
the Bloomberg Consumer Comfort Index. Also, Fed members
Kocherlakota and Raskin are set to speak. In addition, the Treasury
is set to auction 5-year TIPS. Overnight, German inflation as well
as Spanish industrial data are due out.
Good luck and good trading.
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