Futures Higher as Euro Gains
U.S. equity futures rose in pre-market trading as the euro
rallied and European stocks gained. Markets await the interest rate
decisions from the Bank of England and European Central Bank, due
out later this morning.
In other news around the markets:
Australian payrolls grew 10,400 in January, more than double
forecasts, as the unemployment rate stayed flat at 5.4 percent when
it was expected to rise. Spain and France issued bonds overnight
with yields rising for all maturities of the bonds issued. Greek
Finance Minister Yannis Stournaras sees a Greek recovery beginning
in 2013 as deposits return to Greece and citizens "bring back their
money from their mattresses." S&P 500 futures rose 1.9 points
to 1,508.70. The EUR/USD was was higher at 1.3568. Spanish 10-year
government bond yields rose to 5.46 percent. Italian 10-year
government bond yields fell to 4.55 percent. Gold fell 0.14 percent
to $1,676.30 per ounce.
Asian shares were lower overnight despite the strong Australian
employment report as weak earnings from companies such as Sony
) weighed. The Japanese Nikkei Index fell 0.93 percent and the
Shanghai Composite Index fell 0.66 percent and the Hang Seng Index
fell 0.34 percent. Also, the Korean Kospi declined 0.23 percent and
Australian shares rose 0.3 percent.
European shares were higher despite the rise in bond yields in
early trade ahead of the Bank of England and the European Central
Bank rate decisions. The Spanish Ibex Index gained 0.84 percent and
the Italian FTSE MIB Index rose 0.76 percent with strength seen in
energy and industrial stocks. Meanwhile, the German DAX rose 0.25
percent and the French CAC rose 0.34 percent while U.K. shares rose
Commodities were mixed overnight with energy futures gaining and
metals futures declining. WTI Crude futures rose 0.3 percent to
$96.91 per barrel and Brent Crude futures rose 0.74 percent to
$117.59 per barrel. Copper futures rose 0.19 percent on the
Australian payrolls data. Gold was lower and silver futures fell
0.29 percent to $31.79 per ounce.
Currency markets were in a slight risk-on mode overnight as the
euro gained and the yen declined. The EUR/USD was higher at 1.3568
and the dollar gained against the yen to 93.88. Overall, the Dollar
Index fell 0.16 percent on weakness against the euro, the pound,
the Swiss franc, and the Canadian dollar. The Australian dollar was
also strong against the greenback and it gained against the yen but
declined slightly against the euro.
Stocks moving in the pre-market included:
) shares fell 1.31 percent pre-market as the company reported
earnings that missed estimates but on strong revenue and authorized
an additional $1.75 billion share buyback. Green Mountain Coffee
) shares fell 7.03 percent as the company reported earnings that
beat estimates but lowered sales guidance. News Corp (NYSE:
) shares fell 4.32 percent pre-market as the company reported
earnings that beat estimates but lowered guidance. Yelp (NYSE:
) shares fell 2.82 percent after the company reported earnings that
missed estimates on better than expected revenue.
Notable companies expected to report earnings Thursday
Advanced Auto Parts (NYSE:
) is expected to report fourth quarter EPS of $0.76 vs. $0.90 a
year ago. Coca-Cola Enterprises (NYSE:
) is expected to report fourth quarter EPS of $0.43 vs. $0.36 a
year ago. Coinstar (NASDAQ:
) is expected to report fourth quarter EPS of $0.72 vs. $1.00 a
year ago. KKR (NYSE:
) is expected to report fourth quarter EPS of $0.21 vs. $0.33 a
year ago. LinkedIn (NASDAQ:
) is expected to report fourth quarter EPS of $0.19 vs. $0.12 a
year ago. Monster Worldwide (NYSE:
) is expected to report fourth quarter EPS of $0.08 vs. $0.11 a
year ago. OpenTable (NASDAQ:
) is expected to report fourth quarter EPS of $0.43 vs. $0.37 a
year ago. Phillip Morris International (NYSE:
) is expected to report fourth quarter EPS of $1.22 vs. $1.10 a
year ago. Sprint Nextel (NYSE:
) is expected to report a fourth quarter loss of $0.46 per share
vs. a loss of $0.35 per share a year ago.
On the economics calendar Thursday, chain store sales, initial
jobless claims, and non-farm productivity and costs are due out.
Also, the EIA natural gas report and consumer credit data are
expected. Speeches from Fed members Charles Evans and Jeremy Stein
could also move markets and the Fed Balance Sheet and Money Supply
update will be released after the close. Overnight, Chinese
inflation data and the latest German trade balance should move
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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