Futures Tick Higher On Better Eurozone Confidence Data
U.S. equity futures rose marginally in early pre-market trade
following better than expected confidence data in the eurozone and
a strong day Wednesday on the "tapering of the tapering" trade as
investors fear tapering is further off given weaker than expected
data. However, some negative signs from within the U.K. GDP report
echoed fears raised by the
U.S. GDP report
In other news around the markets:
The Eurozone Economic Confidence Index for June rose to 91.3 from
89.4 in May, beating the consensus forecast of 90.3. Industrial and
consumer sentiment improved in the month while the services
sentiment dropped. The U.K. economy grew 0.3 percent in the first
quarter, in line with forecasts, but only 0.3 percent from the
first quarter a year ago, below the forecast of 0.6 percent growth.
Further, real disposable income in the first quarter fell 1.7
percent from the fourth quarter, the largest quarterly drop in 26
years. The number of unemployed persons unexpectedly dropped in
Germany by 12 thousand vs. an expected rise of 8 thousand in June.
The unemployment rate was 6.8 percent, slightly better than the
forecast 6.9 percent, as May's unemployment rate was revised down
to 6.8 percent from 6.9 percent. S&P 500 futures rose 2 points
to 1,597.50 but strong technical resistance sits above near 1,602.
The EUR/USD was higher at 1.3030. Spanish 10-year government bond
yields fell 5 basis points to 4.8 percent. Italian 10-year
government bond yields fell 5 basis points to 4.65 percent. Gold
rose 0.64 percent to $1,237.70.
Asian shares were mostly stronger overnight save for Chinese
stocks as Japanese markets had a strong day on little news. The
Nikkei 225 Index gained 2.96 percent and the Topix Index rose 2.76
percent. In Hong Kong, the Hang Seng Index gained 0.5 percent while
the Shanghai Composite Index slipped 0.08 percent in China. Also,
the Korean Kospi rose 2.87 percent and Australian shares rose 1.68
percent as the country awaits the new government.
European shares were mixed overnight as Spanish stocks plunged.
The Spanish Ibex Index declined 1.29 percent dragging Italy's FTSE
MIB Index lower by 0.26 percent. Meanwhile, the German DAX fell
0.03 percent and the French CAC 40 slipped 0.17 percent while U.K.
shares rose 0.34 percent.
Commodities were mostly higher overnight as precious metals
recovered some of the large losses. WTI Crude futures rose 0.34
percent to $95.82 per barrel and Brent Crude futures rose 0.52
percent to $102.19 per barrel. Copper futures rose 0.87 percent to
$306.70 per pound. Gold was higher and silver futures gained 0.63
percent to $18.73 per ounce.
Currency markets were once again rather quiet overnight as
currency pairs traded in tight bands. The EUR/USD was higher at
1.3030 and the dollar rose against the yen to 98.06. Overall, the
Dollar Index fell 0.11 percent on weakness against the euro and the
Canadian dollar despite strength against the yen, the pound, and
the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
General Mills (NYSE:
) reported fourth quarter EPS of $0.53, in line with estimates, on
revenue of $4.41 billion vs. $4.32 billion expected. The company
also raised estimates for the full year 2014 and expects EPS of
$2.87 to $2.90 vs. the Wall Street estimate of $2.93. Monsanto
) reported third quarter EPS of $1.66 vs. $1.61 expected on revenue
of $4.25 billion vs. $4.42 billion expected. Bed Bath and Beyond
) reported first quarter EPS of $0.92 vs. $0.93 expected on revenue
of $2.61 billion vs. $2.6 billion expected. The company also sees
Q2 EPS between $1.11 and $1.16 vs. the $1.14 estimate. Progress
) reported second quarter EPS of $0.27 vs. $0.22 expected on
revenue of $81.7 million vs. $79.04 million expected.
Notable companies expected to report earnings Thursday
) is expected to report third quarter EPS of $1.13 vs. $1.03 a year
ago on revenue of $7.42 billion vs. $7.15 billion a year ago.
ConAgra Foods (NYSE:
) is expected to report fourth quarter EPS of $0.59 vs. $0.51 a
year ago on revenue of $4.61 billion vs. $3.41 billion a year ago.
KB Homes (NYSE:
) is expected to report a second quarter loss of $0.07 per share
vs. a loss of $0.31 per share a year ago on revenue of $450.8
million vs. $302.85 million a year ago. Nike (NYSE:
) is expected to report fourth quarter EPS of $0.75 vs. $0.59 a
year ago on revenue of $6.64 billion vs. $6.47 billion a year ago.
Shaw Communications (NYSE:
) is expected to report third quarter EPS of $0.44 vs. $0.53 a year
ago on revenue of $1.31 billion vs. $1.28 billion a year ago.
On the economics calendar Thursday, weekly jobless claims and
the PCE price index are due out followed by pending home sales and
the Kansas City Manufacturing Index. Speeches from Fed members
Dudley, Powell, and Lockhart are also expected as well as a 7-year
note auction. Overnight, Japanese industrial production, German
retail sales, and the Spanish budget statement are due out.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Monday's market action, read Benzinga's daily
market wrap .
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