Futures Marginally Lower Ahead of Quiet Day
U.S. equity futures traded marginally lower after Monday's gains
heading into a quiet day both on the earnings and economics
calendars. Should the S&P 500 post gains today, it would mark
the 21st consecutive Tuesday of gains.
In other news around the markets:
Spain's unemployment count, those collecting unemployment benefits,
declined 98,265 in May to 4.89 million, a drop of almost 2 percent.
The figure was much stronger than expected and Prime Minister
Mariano Rajoy had been hinting that Spain may be close to turning a
corner economically. The Reserve Bank of Australia left rates on
hold at 2.75 percent as expected overnight. In the accompanying
statement, the RBA noted that there is scope for further easing
should it be required, that inflation remains tepid, and that the
Aussie dollar still remains elevated given the drop in commodity
prices. European Stability Mechanism (ESM) Chief Klaus Regling
announced this morning that the bailout facility will be prepared
to make direct bank injections once the banking regulator is firmly
established within the European Central Bank. Previously, the ESM
would have to loan money to governments to inject to banks, as it
did with Spain in the summer of 2012. Regling also added that 22
percent of the ESM's bonds have been bought by Asian investors, the
largest international holders. S&P 500 futures declined 1.1
points to 1,635.10. The EUR/USD was flat at 1.3076. Spanish 10-year
government bond yields were flat at 4.47 percent. Italian 10-year
government bond yields were flat at 4.16 percent. Gold fell 0.49
percent to $1,405.00 per ounce.
Asian shares closed mixed overnight as Japanese shares recouped
some of Monday's losses and Chinese markets declined. The Japanese
Nikkei Index gained 2.05 percent while the broader Topix Index rose
2.6 percent despite the Shanghai Composite Index dropping 1.15
percent and the Hang Seng Index eking out a gain of 0.01 percent.
Also, the Korean Kospi closed flat on the day as Australian shares
fell 0.45 percent in tandem with China.
European shares traded higher in early trade after the positive
Spanish economic news and also on the ESM news. The Spanish Ibex
Index gained 0.90 percent and the Italian FTSE MIB Index rose 0.93
percent. Meanwhile, the German DAX rose 0.52 percent and the French
CAC 40 Index gained 0.43 percent while U.K. shares rose 0.47
Commodities were mostly lower save for copper as dollar strength
returned. WTI Crude futures declined 0.67 percent to $92.82 per
barrel and Brent Crude futures fell 0.32 percent to $101.73 per
barrel. Copper futures rose 0.5 percent to $334.70 following the
RBA decision. Gold was lower and silver futures fell 0.88 percent
to $22.52 per ounce.
Currency markets were on the move overnight as the dollar
regained some ground following recent losses. The EUR/USD was flat
at 1.3076 and the dollar rose against the yen to 100.25, back above
the psychological 100 level that it broke down through yesterday.
Overall, the Dollar Index rose 0.17 percent on strength against the
yen, the Canadian dollar, and the Swiss franc. Notably, the Aussie
dollar weakened overnight as well following the RBA comments that
there is scope for further easing and that the currency remains
Earnings Reported Yesterday
Key companies that reported earnings Monday include:
Cracker Barrel (NASDAQ:
) reported third quarter EPS of $1.02 vs. $0.94 expected on revenue
of $640.4 million vs. $630.78 million expected. ABM Industries
) reported second quarter EPS of $0.36 vs. $0.33 expected on
revenue of $1.17 billion vs. $1.18 billion expected. The company
also raised its full-year guidance. G-III Apparel (NASDAQ:
) reported first quarter EPS of $0.05 vs. an expected loss of $0.05
per share on revenue of $272.6 million. The company also raised
guidance for the next quarter and for the full year although
guidance for the next quarter came in slightly below Wall Street
forecasts while the full year guidance was strong. SAIC Corp.
) reported first quarter EPS of $0.23 vs. $0.26 expected on revenue
of $2.71 billion vs. $2.59 billion expected. SAIC also raised
guidance in the quarter. Verint Systems (NASDAQ:
) reported first quarter EPS of $0.44 vs. $0.52 expected on revenue
of $205.4 million vs. $203.34 million expected. The company also
guided full-year earnings roughly in line with Wall Street
Stocks moving in the pre-market included:
G-III Apparel (NASDAQ:
) shares climbed 6.69 percent pre-market after the company reported
better than expected earnings and raised full year guidance to
above Wall Street forecasts. Zynga (NASDAQ:
) shares bounced back 0.3 percent pre-market after dropping 12.03
percent Monday as the company announced that it is set to lay off
18 percent of its workforce. Before the announcement, All Things D
ran a report with a similar story. ABM Industries (NYSE:
) shares gained 3.25 percent pre-market after the company reported
better than expected earnings and raised its guidance. General
) shares climbed 3.22 percent pre-market as the automaker is set to
replace H.J. Heinz (NYSE:
) in the S&P 500 and S&P 100 after Heinz is fully taken
private. Microchip Technology (NASDAQ:
) shares gained 4.42 percent pre-market as the company raised
guidance for the first quarter. The company now sees sales growth
of 4-7 percent vs. 2-6 percent previously and expects adjusted EPS
of $0.52-$0.56 vs. the consensus Wall Street estimate of $0.52.
Notable companies expected to report earnings Tuesday
Dollar General (NYSE:
) is expected to report first quarter EPS of $0.71 vs. $0.63 a year
ago. Bob Evans Farms (NASDAQ:
) is expected to report fourth quarter EPS of $0.64 vs. $0.80 a
year ago. Mattress Firm Holding Corp. (NASDAQ:
) is expected to report first quarter EPS of $0.37 vs. $0.31 a year
ago. Shuffle Master (NASDAQ:
) is expected to report second quarter EPS of $0.20 vs. $0.20 a
year ago. Analogic (NASDAQ:
) is expected to report third quarter EPS of $0.66 vs. $0.59 a year
On the economics calendar Tuesday, international trade data is
due out as well as the weekly Redbook report. Also, Fed members
Sarah Bloom Raskin, Esther George, and Richard Fischer are expected
to speak. The Treasury is also expected to auction 4-week bills.
Overnight, the Australian GDP report, HSBC China Non-Manufacturing
PMI, Eurozone and British Services PMIs, and the Eurozone's GDP
report are all expected to be released.
Good luck and good trading.
to view Benzinga's Market Wrap for Monday, June 3.
to register for Benzinga's PreMarket Info show broadcast daily at
8:15 am EST!
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information you
need to invest better today.
Click here to start your 14 Day Trial of Benzinga