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
). Also, a speech from Fed President Charles Evans could move
markets this morning.
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 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
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 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.
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:
) 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:
) reported third quarter EPS of $0.69 vs. $0.58 expected on revenue
of $8.73 billion vs. $8.64 billion expected. Kindred Healthcare
) reported second quarter EPS of $0.12 vs. $0.33 expected on
revenue of $1.41 billion vs. $1.47 billion expected. Black Hills
) reported second quarter EPS of $0.41 vs. $0.42 expected on
revenue of $279.8 million vs. $285.94 million expected.
Stocks moving in the pre-market included:
TRW Holdings (NYSE:
) shares declined 1.42 percent pre-market after the company sold
10.3 million shares in a secondary offering. Einstein Noah
Restaurant Group (NASDAQ:
) 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
) 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:
) shares fell 0.46 percent as the UAW is selling 45.5 million of
its warrants in the stock.
Notable companies expected to report earnings Tuesday
CVS Corp. (NYSE:
) 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:
) 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:
) 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
) 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.
) 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
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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