Benzinga Market Primer: Tuesday, August 6: Futures Flat Ahead Of Fed Speak

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Futures Flat Ahead of Fed Speak

U.S. equity futures traded flat in early pre-market trade ahead of some key earnings reports, notably from drug store chain CVS (NYSE: CVS ). Also, a speech from Fed President Charles Evans could move markets this morning.

Top News

In other news around the markets:

The Reserve Bank of Australia cut its benchmark interest rate to a record low overnight of 2.5 percent from 2.75 percent. The RBA Board noted that they expect growth below trend in the near term and that they see further downside for the Australian dollar. The Italian economy shrunk less than expected in the second quarter new data showed as the first estimate of Q2 GDP was reported as a contraction of 0.2 percent. Economists were looking for a contraction of 0.4 percent compared to last year's contraction of 0.6 percent. British industrial production rose sharply in June, climbing 1.1 percent compared to the forecast of 0.6 percent. The prior reading was a flat 0.0 percent and June's reading is the highest since January of 2011. S&P 500 futures fell 0.3 points to 1,702.20. The EUR/USD was higher at 1.3277. Spanish 10-year government bond yields fell 1 basis point to 4.58 percent. Italian 10-year government bond yields were flat at 4.28 percent. Gold fell 0.93 percent to $1,290.30 per ounce.

Asian Markets

Asian shares closed off of the lows with some major indices closing higher following the RBA rate decision. The Japanese Nikkei 225 Index gained 1.00 percent and the Topix Index rose 0.75 percent. In Hong Kong, the Hang Seng Index fell 1.34 percent while the Shanghai Composite Index rallied 0.49 percent in China. Also, the Korean Kospi fell 0.5 percent and Australian shares declined 0.11 percent.

European Markets

European shares were mixed in early trade following mixed earnings reports from companies across the continent. The Spanish Ibex Index gained 0.39 percent and the FTSE MIB Index rose 0.22 percent. Meanwhile, the German DAX was flat and the French CAC 40 Index rose 0.22 percent while U.K. shares fell 0.08 percent.

Commodities

Commodities were lower overnight as the RBA warned on the decline of the resource boom. WTI Crude futures declined 0.27 percent to $106.27 per barrel and Brent Crude futures fell 0.29 percent to $108.39 per barrel. Copper futures rose 0.44 percent to $318.20 per pound. Gold was lower and silver futures declined 0.28 percent to $19.67 per ounce.

Currencies

Currency markets were on the move as the euro climbed following the Italian GDP report. The EUR/USD was higher at 1.3277 and the dollar fell against the yen to 98.25 from 98.30. Overall, the Dollar Index declined 0.1 percent on weakness against the euro, the pound, and the yen.

Earnings Reported Yesterday

Key companies that reported earnings Monday include:

Hologix (NASDAQ: HOLX ) reported third quarter EPS of $0.38 vs. $0.37 expected on revenue of $626.1 million vs. $626.84 million expected. Tyson Foods (NYSE: TSN ) reported third quarter EPS of $0.69 vs. $0.58 expected on revenue of $8.73 billion vs. $8.64 billion expected. Kindred Healthcare (NYSE: KND ) reported second quarter EPS of $0.12 vs. $0.33 expected on revenue of $1.41 billion vs. $1.47 billion expected. Black Hills Corp. (NYSE: BKH ) reported second quarter EPS of $0.41 vs. $0.42 expected on revenue of $279.8 million vs. $285.94 million expected.

Pre-Market Movers

Stocks moving in the pre-market included:

TRW Holdings (NYSE: TRW ) shares declined 1.42 percent pre-market after the company sold 10.3 million shares in a secondary offering. Einstein Noah Restaurant Group (NASDAQ: BAGL ) shares declined 4.56 percent pre-market as the company announced a secondary offering of 1.5 million shares on behalf of Greenlight Capital, the hedge fund run by David Einhorn. American Eagle Outfitters (NYSE: AEO ) shares declined 17.28 percent pre-market as the company slashed EPS guidance to $0.10 from a prior range of $0.19-0.21, below analyst estimates of $0.21. General Motors (NYSE: GM ) shares fell 0.46 percent as the UAW is selling 45.5 million of its warrants in the stock.

Earnings

Notable companies expected to report earnings Tuesday include:

CVS Corp. (NYSE: CVS ) is expected to report second quarter EPS of $0.96 vs. $0.81 a year ago on revenue of $31.14 billion vs. $30.71 billion a year ago. Archer-Daniels-Midland (NYSE: ADM ) is expected to report second quarter EPS of $0.44 vs. $0.38 a year ago on revenue of $22.87 billion vs. $22.68 billion a year ago. Emerson Electric (NYSE: EMR ) is expected to report third quarter EPS of $0.98 vs. $1.04 a year ago on revenue of $6.44 billion vs. $6.48 billion a year ago. Dish Network (NASDAQ: DISH ) is expected to report second quarter EPS of $0.54 vs. $0.50 a year ago on revenue of $3.65 billion vs. $3.57 billion a year ago. FirstEnergy (NYSE: FE ) is expected to report second quarter EPS of $0.54 vs. $0.60 a year ago on revenue of $3.61 billion vs. $3.87 billion a year ago.

On the economics calendar Tuesday, the weekly Redbook is due out followed by the JOLTS job report and the weekly 4-week bill auction. Also, the Fed's Evans is set to speak and the Treasury will also auction 3-year notes and STRIPS. Overnight, the Bank of England Inflation Report and a speech from BoE Governor Mark Carney are expected.

Good luck and good trading.

Tune into Benzinga's PreMarket Info show with Dennis Dick and Joel Elconin here .

For a recap of Monday's market action, read Benzinga's daily market wrap .

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Bonds , Commodities , Futures , International

Referenced Stocks: ADM , AEO , BAGL , DISH , HOLX

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