Futures Slide as Apple Disappoints
U.S. equity futures slid in pre-market trading following the
disappointing earnings report from Apple, Inc. (NASDAQ:
). Apple reported first quarter earnings that beat expectations but
revenue was light and margins dropped precipitously.
In other news around the markets:
The HSBC Flash China Manufacturing PMI rose to 51.9 in January,
better than economist forecasts of 51.7 and a continued improvement
from the previous 51.5. Data released early Thursday showed the
Eurozone contracted less than expected in the first half of
January. The Eurozone Manufacturing PMI rose to 47.5 from 46.1,
still showing contraction but better than forecasts of 46.6, and
the Eurozone Services PMI rose to 48.3 from 47.8, besting
expectations of 48.1. Spain's unemployment rate rose to a massive
26.02 percent in the fourth quarter, worse than the 25 percent rate
of the third quarter and slightly worse than forecasts of 26
percent. S&P 500 futures fell 2.6 points to 1,487.50. The
EUR/USD was slightly higher at 1.3329. Spanish 10-year government
bond yields fell to 5.03 percent. Italian 10-year government bond
yields fell to 4.185 percent. Gold fell 0.63 percent to $1,675.90
Asian shares were mixed overnight following Apple's weakness
despite the stronger than expected Chinese data. The Japanese
Nikkei Index rose 1.28 percent while the Shanghai Composite Index
slipped 0.79 percent and the Hang Seng Index declined 0.15 percent.
Also, the Korean Kospi fell 0.8 percent and Australian shares rose
European shares were higher in early trade following the strong
PMI data on both the manufacturing and services side, with strength
in these reports led by Germany. The Spanish IBEX Index rose 0.17
percent and the Italian MIB Index rose 0.13 percent. Meanwhile, the
German DAX gained 0.05 percent and the French CAC rose 0.23 percent
while U.K. shares rose 0.27 percent.
Commodities were mostly weaker overnight despite the strong
Chinese and European data. WTI Crude futures rose 0.37 percent to
$96.24 per barrel and Brent Crude futures fell 0.16 percent to
$112.63 per barrel. Copper futures declined 0.22 percent despite
strength in the Chinese PMI report, with futures falling to $367.70
per barrel. Gold was lower and silver futures declined 1.85 percent
to $31.84 per ounce.
Currency markets returned to seeing massive yen weakness
Thursday as the yen declined and the Canadian dollar remained weak
following the Bank of Canada decision Wednesday. The EUR/USD was
slightly higher at 1.3329 and the dollar rose against the yen to
89.59. Overall, the Dollar Index rose 0.11 percent on strength
against the yen, the Swiss franc, and the Canadian dollar. The
USD/CAD remained above parity overnight after popping following the
Bank of Canada stating that rate hikes were less imminent now as
the housing market weakens.
Stocks moving in the pre-market included:
) Shares fell 8.74 percent pre-market following its earnings
report. Netflix (NASDAQ:
) shares rose more than 35 percent pre-market as the company
reported a profit when it was expected to report a loss in the
quarter. Broadcom (NASDAQ:
) shares fell 2.71 percent following the weak Apple earnings, as it
is a key Apple supplier. U.S. Airways (NYSE:
) shares rose 0.13 percent pre-market following a strong day as the
company reported better than expected earnings and continued to
perform well in a tough environment.
Notable companies expected to report earnings Thursday
3M Co. (NYSE:
) is expected to report fourth quarter EPS of $1.41 vs. $1.35 a
year ago. AT&T (NYSE:
) is expected to report fourth quarter EPS of $0.47 vs. $0.42 a
year ago. Juniper Networks (NYSE:
) is expected to report fourth quarter EPS of $0.22 vs. $0.28 a
year ago. Microsoft (NASDAQ:
) is expected to report second quarter EPS of $0.75 vs. $0.78 a
year ago. Starbucks (NASDAQ:
) is expected to report first quarter EPS of $0.57 vs. $0.50 a year
On the economics calendar Thursday, jobless claims and the
Manufacturing PMI are due out. Also, leading indicators and the
Kansas City Manufacturing Index are due out as well as the EIA
Petroleum and Nat Gas reports. In addition, the Treasury is set to
auction 10-year TIPS. Overnight, the Bank of Japan minutes are set
to be released, the German IFO Business Confidence Survey is due
out, and the latest British GDP report should move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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