Futures Slightly Higher on Earnings, Economy
U.S. equity futures traded slightly higher in early pre-market
trade as mixed earnings and economic data kept any bullish
sentiment tepid. Key economic reports from Europe continued to
point to slow-to-no growth and mixed earnings from key economic
bellwethers in the U.S. kept gains minimal.
In other news around the markets:
The U.K. avoided a triple-dip recession, according to the
government. The U.K. reported that first quarter GDP grew 0.3
percent vs. 0.1 percent expected and better than the previous
estimate of 0.2 percent. The report showed the best growth since
the fourth quarter of 2011 and notably, construction output rose
2.5 percent in the quarter. Spain's unemployment rate rose to a new
record in the first quarter, as Spain reported that an astounding
27.2 percent of the labor force is unemployed, more than the fourth
quarter of 2012's 26.02 percent. The Japanese Ministry of Finance
released data on foreign flows of funds, showing slower than
expected outflows from the country into foreign assets, weighing on
the USD/JPY and keeping the rate below the 100 level. S&P 500
futures rose 3.2 points to 1,577.30. The EUR/USD was higher at
1.3060. Spanish 10-year government bond yields were flat at 4.28
percent. Italian 10-year government bond yields were flat at 4.01
percent. Gold rose 1.51 percent to $1,445.70 per ounce.
Asian shares were mostly higher overnight save for Japan as
shares following the strength seen in European shares Wednesday.
The Japanese Nikkei Index rose 0.6 percent and the Shanghai
Composite Index fell 0.86 percent while the Hang Seng Index rose
0.98 percent. Also, the Korean Kospi rose 0.84 percent while
Australian shares rose 1.72 percent on central bank easing
European shares were lower after strong gains yesterday
following increased hopes of further ECB easing as well as the U.K.
GDP data. The Spanish Ibex Index fell 1.1 percent and the Italian
FTSE MIB Index fell 0.06 percent. Meanwhile, the German DAX rose
0.22 percent and the French CAC 40 fell 0.17 percent while U.K.
shares slipped a mere 0.05 percent.
Commodities were mostly higher overnight as the dollar weakened.
WTI Crude futures rose 0.26 percent to $91.70 per barrel and Brent
Crude futures slipped 0.08 percent to $101.74 per barrel. Copper
futures rose 1.2 percent to $320.30 per pound on hopes of RBA
easing. Gold was higher and silver futures rose 1.98 percent to
$23.37 per ounce.
Currency markets were in flux overnight as the dollar weakened
against most major trading partners. The EUR/USD was higher at
1.3060 and the dollar fell against the yen to 99.20 while the pound
was stronger against the dollar at 1.5427. Overall, the Dollar
Index slipped 0.48 percent on weakness against the pound, the euro,
the yen, the Swiss franc, and the Canadian dollar.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
) reported first quarter EPS of $1.73 vs. $1.47 expected on revenue
of $18.89 billion vs. $18.91 billion expected. Ford (NYSE:
) reported first quarter EPS of $0.41 vs. $0.39 expected on revenue
of $33.9 billion vs. $33.77 billion expected. Hess (NYSE:
) reported first quarter EPS of $1.95 vs. $1.59 expected on revenue
of $9.3 billion. Eli Lilly (NYSE:
) reported first quarter EPS of $1.14 vs. $1.05 expected on revenue
of $5.6 billion vs. $5.66 billion. Proctor and Gamble (NYSE:
) reported first quarter EPS of $0.99 vs. $0.96 expected on revenue
of $20.6 billion vs. $20.74 billion expected. Qualcomm (NASDAQ:
) reported second quarter EPS of $1.17 vs. $1.16 expected on
revenue of $6.12 billion vs. $6.07 billion. Zynga (NASDAQ:
) reported first quarter EPS of $0.01 vs. an expected $0.04 loss
per share on revenue of $264.00 million vs. $209.79 million
expected but lowered guidance.
Stocks moving in the pre-market included:
) shares fell 9.82 percent pre-market on lower than expected
guidance. Newmont Mining (NYSE:
) shares rose 1.22 percent pre-market on higher metals prices this
morning. Google (NASDAQ:
) shares traded near flat on reports that the company has reached a
settlement with the EU on its anti-trust probe. General Electric
) shares rose 0.41 percent as the company announced that its
financing arm will no longer make financing available for companies
in the firearms industry.
Notable companies expected to report earnings Thursday
) is expected to report first quarter EPS of $0.09 vs. $0.28 a year
ago. Biogen (NASDAQ:
) is expected to report first quarter EPS of $1.59 vs. $1.40 a year
ago. Expedia (NASDAQ:
) is expected to report first quarter EPS of $0.23 vs. $0.26 a year
ago. 3M (NYSE:
) is expected to report first quarter EPS of $1.66 vs. $1.59 a year
ago. Potash (NYSE:
) is expected to report first quarter EPS of $0.61 vs. $0.56 a year
ago. Time Warner Cable (NYSE:
) is expected to report first quarter EPS of $1.40 vs. $1.20 a year
ago. Exxon Mobil (NYSE:
) is expected to report first quarter EPS of $2.04 vs. $2.00 a year
On the economics calendar Thursday, initial jobless claims and
the Kansas City Fed Manufacturing Index are both expected today.
Also, the Treasury is expected to auction 7-year notes. Overnight,
the Bank of Japan meeting and press conference could move the yen
while Spain will release deficit data.
Good luck and good trading.
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