Futures Rise On Alcoa Beat
U.S. equity futures rose slightly in pre-market trade following
a positive report from economic bellwether Alcoa (NYSE:
Alcoa reported first quarter EPS ex-items of $0.11 which beat
estimates of $0.08 but sales fell slightly short of the forecast.
Alcoa also reaffirmed its global aluminum forecast of seven percent
growth and noted strong demand, especially from U.S. automakers and
construction companies, and falling global supplies as key
In other news around the markets:
Ron Johnson has been ousted as CEO at J.C. Penney (NYSE:
) and his replacement is former CEO Mike Ullman. Chinese inflation
gained less than expected in March, a sign that the global economy
may be slowing slightly from February. Chinese CPI rose 2.1 percent
from a year ago in March, slower than forecasts of a rise of 2.4
percent, and producer prices fell 1.9 percent, bigger than the 1.8
percent decline forecast. Fed Chairman Ben Bernanke spoke overnight
and hinted that any Fed exit policy would begin with hikes in the
interest rate on excess reserves (IOER) and that asset sales would
come much later, if at all. S&P 500 futures rose 2.2 points to
1,561.70. The EUR/USD was rose to 1.3035 after holding support at
1.3020. Spanish 10-year government bond yields fell to 4.74 percent
from 4.75 percent. Italian 10-year government bond yields were flat
at 4.35 percent. Gold rose 0.01 percent to $1,573.70 per ounce.
Asian shares were mixed overnight as Japanese shares halted
their post-Bank of Japan rally and Chinese shares rose on hopes of
monetary easing in the face of slowing inflation. The Japanese
Nikkei Index was flat overnight and the Shanghai Composite Index
rose 0.64 percent while the Hang Seng Index rose 0.7 percent. Also,
the Korean Kospi rose 0.11 percent and Australian shares popped
European shares were higher overnight as Cyprus and Portugal
fears blow over. The Spanish Ibex Index rose 0.92 percent and the
Italian FTSE MIB Index rose 1.14 percent. Meanwhile, the German DAX
rose 0.37 percent and the French CAC rose 0.48 percent while U.K.
shares rose 0.48 percent.
Commodities were modestly higher overnight despite the weakness
in Chinese inflation. WTI Crude futures rose 0.22 percent to $93.60
and Brent Crude futures rose 0.41 percent to $105.07 per barrel.
Copper futures rose 0.67 percent to $339.55 on both the Chinese
news and the Alcoa guidance on the global economy. Gold was higher
and silver futures rose 0.36 percent to $27.24.
Currency markets took a proverbial breather overnight after the
massive moves in the yen crosses over the past few days. The
EUR/USD was higher at $1.3035 and the dollar fell against the yen
to 98.84 after briefly probing the 100 level Monday. Overall, the
Dollar Index fell 0.26 percent on weakness against the euro, the
pound and the yen.
Earnings Reported Yesterday
Key companies that reported earnings Monday include:
) reported first quarter EPS of $0.11 vs. estimates of $0.08 and
better than the $0.10 reported a year ago. However, sales were
light at $5.83 billion on forecasts of $5.89 billion. A. Schulman
) reported second quarter EPS of $0.27 vs. $0.40 a year ago, a miss
of 32.5 percent. AngioDynamics (NASDAQ:
) reported third quarter EPS of $0.08 vs. estimates of $0.05. Sales
were light at $81.6 million on forecasts of $81.7 million. Mistras
) reported third quarter EPS of $0.07 vs. estimates of $0.17.
Revenue was slightly stronger than forecasts at $133.7 million vs.
forecasts of $131.62 million.
Stocks moving in the pre-market included:
) shares fell 0.6 percent in volatile trading after reporting a
bottom-line beat but a bottom-line miss and reaffirming guidance.
J.C. Penney (NYSE:
) shares fell 5.1 percent pre-market after they announced the
sacking of Ron Johnson. Cliff's Natural Resources (NYSE:
) shares rose 2.45 percent pre-market on bullish sentiment for
global metals and mining stocks following Alcoa earnings. Advanced
Micro Devices (NYSE:
) shares rose 0.77 percent pre-market on news that Microsoft
) is set to include the company's chips in its latest Xbox console
Notable companies expected to report earnings Tuesday
) is expected to report first quarter EPS of $0.08 vs. $0.20 a year
ago. PriceSmart (NASDAQ:
) is expected to report second quarter EPS of $0.77 vs. $0.67 a
year ago. Supervalu (NYSE:
) is expected to report fourth quarter EPS of $0.18 vs. $0.36 a
On the economics calendar Tuesday, the NFIB Small Business
Optimism Index and ICSC chain store sales data are expected to be
released, followed by the Redbook. Also, Fed President Lacker is
set to speak and wholesale trade data is due out. In addition, the
Treasury is set to auction 4-week bills and 3-year notes.
Overnight, China's trade balance, French, Spanish, and Italian
industrial production, and the latest OECD global economic
forecasts are all due out.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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