Futures Higher On China Trade Data
U.S. equity futures shrugged off fears of Federal Reserve
tapering in early trade and moved slightly higher following a
largely better than expected trade report from China for July.
Also, the European Central Bank issued its monthly report, revising
down growth estimates for the currency zone and also forecasting
In other news around the markets:
China's trade balance was reported at $17.82 billion in July, below
the consensus forecast of $26.9 billion. However, the trade balance
was lower due to stronger than expected imports with imports rising
10.9 percent in July from a year ago vs. the expected 1.0 percent
rise while exports rose 5.1 percent vs. the expected 2.0 percent
gain. The European Central Bank issued its monthly report and cut
its growth forecast for the eurozone to -0.6 percent from -0.4
percent for 2013 and 1.0 percent growth to 0.9 percent growth in
2014. Also, the ECB cut its inflation outlook from 1.7 percent to
1.5 percent for 2013 and from 1.6 percent to 1.5 percent for 2014.
The Bank of Japan kept policy on hold overnight, as expected, but
looked content to support Prime Minister Abe's plan of a sales tax
hike early next year to plug a budget hole, a move which is seen as
threatening the economic recovery. S&P 500 futures rose 2.6
points to 1,690.80. The EUR/USD was higher at 1.3355. Spanish
10-year government bond yields fell 2 basis points to 4.54 percent.
Italian 10-year government bond yields fell 2 basis points to 4.23
percent. Gold rose 0.34 percent to $1,289.70 per ounce.
Asian shares were mixed overnight with Australia getting a boost
from the Chinese imports figure despite a poor employment report.
The Japanese Nikkei 225 Index fell 1.59 percent and the Topix Index
dropped 1.36 percent. In Hong Kong, the Hang Seng Index rose 0.31
percent while the Shanghai Composite Index fell 0.09 percent in
China. Also, the Korean Kospi rose 0.3 percent and Australian
shares gained 1.07 percent.
European shares were higher following the ECB comments which
largely indicated that the ECB may have to do more to stimulate
growth across the currency zone. The Spanish Ibex Index rose 0.59
percent and the Italian FTSE MIB Index gained 0.74 percent.
Meanwhile, the German DAX rose 0.29 percent and the French CAC 40
gained 0.26 percent while U.K. shares rallied 0.23 percent.
Commodities were mixed overnight as oil dropped but copper
rallied on the China data. WTI Crude futures fell 0.12 percent to
$104.24 per barrel and Brent Crude futures fell 0.34 percent to
$107.08 per barrel. Copper futures rallied 2.4 percent to $324.90
per pound. Gold was higher and silver futures gained 1.14 percent
to $19.73 per ounce.
Currency markets were on the move overnight as the dollar was
sold across the board. The EUR/USD was higher at 1.3355 and the
dollar was flat against the yen, erasing earlier gains. Overall,
the Dollar Index fell 0.12 percent on weakness against the pound,
the euro, the Canadian dollar, and the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
) reported second quarter EPS of $0.05 vs. an expected loss of
$0.17 per share on revenue of $405.14 million vs. $393.67 million.
Green Mountain Coffee Roasters (NASDAQ:
) reported third quarter EPS of $0.82 vs. $0.77 expected on revenue
of $967.1 million vs. $981.9 million. Groupon (NASDAQ:
) reported a second quarter loss of $0.02 vs. an expected profit of
$0.02 per share on revenue of $608.7 million vs. $605.54 million
expected. SolarCity (NASDAQ:
) reported a second quarter loss of $0.43 per share vs. an expected
loss of $0.38 per share on revenue of $46.6 million vs. $27.44
million expected. Time Warner (NYSE:
) reported second quarter EPS of $0.83 vs. $0.76 expected on
revenue of $7.4 billion vs. $7.1 billion expected.
Stocks moving in the pre-market included:
Freeport-McMoRan Copper and Gold (NYSE:
) rose 1.8 percent pre-market to $29.96 as copper prices rallied on
the back of strong Chinese imports. Potash Corp. (NYSE:
) shares rallied 1.76 percent pre-market to $30.10 on comments from
the CEO that the breakup of the Russian cartel will not have as
large of an impact as previously thought. Tesla (NASDAQ:
) shares rose 12.15 percent pre-market following the earnings
report. Groupon (NASDAQ:
) rose 23.51 percent pre-market following its new $300 million
share buyback and CEO announcement.
Notable companies expected to report earnings Thursday
) is expected to report second quarter EPS of $9.38 vs. $7.35 a
year ago on revenue of $1.66 billion vs. $1.33 billion a year ago.
) is expected to report second quarter EPS of $0.33 on revenue of
$592.17 million. AMC Networks (NASDAQ:
) is expected to report second quarter EPS of $0.79 vs. $0.58 a
year ago on revenue of $368.48 million vs. $327.57 million a year
ago. Molycorp (NYSE:
) is expected to report a second quarter loss of $0.23 per share
vs. a loss of $0.03 per share a year ago on revenue of $157.56
million vs. $104.58 million a year ago. Dendreon (NASDAQ:
) is expected to report a second quarter loss of $0.42 per share
vs. a loss of $0.65 per share a year ago on revenue of $75.61
million vs. $79.99 million a year ago.
On the economics calendar Thursday, initial jobless claims are
due out followed by a 30-year bond auction. Overnight, Chinese
inflation, fixed asset investment, industrial production, and
retail sales are all due out.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Wednesday's market action, read Benzinga's daily
market wrap .
(c) 2013 Benzinga.com. Benzinga does not provide investment
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