Futures Gain Into Fed Speak
U.S. equity futures rose in early pre-market trade ahead of key
speeches from FOMC voting members. New York Fed President William
Dudley, who is a permanent voting member and is in charge of the
open market operations for the Fed, is set to speak this morning
followed by a speech from Governor Jerome Powell.
In other news around the markets:
The Reserve Bank of Australia voted to keep interest rates
unchanged at 2.75 percent overnight. The RBA said "the inflation
outlook, as currently assessed, may provide some scope for further
easing, should that be required to support demand," that the Aussie
dollar is still overvalued, and that they see growth picking up in
the next year globally. Reuters reported, citing an EU official,
that Greece has only three days to reassure lenders that it can
deliver on promised bailout reforms as the nation faces a large
financial hole which could put the country at risk of missing out
on the next bailout tranche and risk a new financial crisis.
European finance ministers are set to meet on July 8 to approve the
disbursement. The U.K. Construction PMI rose slightly less than
expected in June to 51.0 vs. the forecast of 51.1 but rose from
May's 50.8. Yesterday, the more broad Manufacturing PMI gained to a
strong 52.5 from an upwardly revised May figure of 51.5 on
expectations of a reading of 51.5. S&P 500 futures gained 5.4
points to 1,612.10. The EUR/USD was lower at 1.3027. Spanish
10-year government bond yields were flat at 4.6 percent. Italian
10-year government bond yields were flat at 4.41 percent. Gold rose
0.49 percent to $1,261.80 per ounce.
Asian shares were mixed overnight but saw most major markets
gain. The Japanese Nikkei 225 Index gained 1.78 percent and the
Topix Index rose 1.84 percent on new data that showed that the
money supply grew over 30 percent from a year ago but has not yet
reached a doubling pace as it is targeted to do so. In Hong Kong,
the Hang Seng Index re-opened and closed down 0.7 percent while
Chinese shares gained 0.57 percent, as measured by the Shanghai
Composite Index. Also, the Korean Kospi slipped 0.04 percent but
Australian shares rallied 2.63 percent as the RBA left scope for
European shares were mostly lower following large rallies
yesterday that coincided with mostly better than expected
manufacturing data, save for Germany. The Spanish Ibex Index fell
0.07 percent and the Italian FTSE MIB Index declined 0.54 percent.
Meanwhile, the German DAX fell 0.77 percent, leading declines, and
the French CAC 40 Index fell 0.47 percent while U.K. shares
declined 0.26 percent.
Commodities were mostly stronger overnight despite a rally in
the dollar. WTI Crude futures rose 0.15 percent to $98.14 per
barrel and Brent Crude futures gained 0.17 percent to $103.18 per
barrel. Copper futures declined 0.17 percent to $315.15 per pound
after a massive rally Monday. Gold was higher and silver futures
gained 0.75 percent to $19.73 per ounce.
Currency markets saw broad dollar strength overnight as the
greenback rose against most major pairs. The EUR/USD was lower at
1.3027 and the dollar gained against the yen to 99.71 after briefly
rising as high as 99.91. Overall, the Dollar Index rose on strength
against the euro, the Swiss franc, the Canadian dollar, the British
pound, and the yen.
Earnings Reported Yesterday
Key companies that reported earnings Monday include:
A Schulman (NASDAQ:
) reported third quarter EPS of $0.50 vs. $0.65 expected on revenue
of $548.6 million vs. $576.1 million expected. The company also
lowered guidance for the full year and now expects EPS of
$1.70-1.80 vs. the consensus forecast of $2.01. Previously, the
company had expected EPS of between $2.08-2.13. Xyratex (NASDAQ:
) reported second quarter EPS of $0.11 vs. an expected loss of
$0.05 per share on revenue of $216.2 million vs. $203.16 million
expected. The company also issued guidance for the third quarter
and now expects EPS to be between a loss of $0.04 per share and EPS
of $0.20 vs. the consensus forecast of $0.09. Revenue was guided
between $195-225 million vs. the consensus forecast of $$223.1
Stocks moving in the pre-market included:
Achillion Pharmaceuticals (NASDAQ:
) shares fell 19.02 percent pre-market after an FDA study on the
company's drug Sovarprevir was placed on hold. A Shulman Inc.
) shares fell 13.4 percent pre-market after the company reported
worse than expected earnings and lowered guidance. Xyratex (NASDAQ:
) shares rose 5.5 percent but were off of after-hours highs after
the company reported better than expected earnings. However, gains
were capped by weak revenue guidance.
Notable companies expected to report earnings Tuesday
Acuity Brands (NYSE:
) is expected to report third quarter EPS of $0.88 vs. $0.82 a year
ago on revenue of $518.76 million vs. $487.5 million a year ago.
Constellation Brands (NYSE:
) is expected to report first quarter EPS of $0.40 vs. $0.41 a year
ago on revenue of $196.52 million vs. $176.62 million expected. The
Greenbrier Company (NYSE:
) is expected to report third quarter EPS of $0.55 vs. $0.61 on
revenue of $503.08 million vs. $507.8 million a year ago.
On the economics calendar Tuesday, motor vehicle sales will be
released throughout the day and the weekly Redbook, the New York
NAPM, and factory orders data are expected as well. Also, New York
Fed President William Dudley and Fed Governor Jeremy Stein are
expected to speak and the Treasury will hold its weekly 4-week bill
auction. Overnight, global services PMIs will be released and the
eurozone retail sales report is also expected.
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 .
(c) 2013 Benzinga.com. Benzinga does not provide investment
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