Futures Higher After Apple Earnings
U.S. equity futures rose in the pre-market after Apple (NASDAQ:
) reported better than expected third quarter results. Also, CFO
Peter Oppenheimer hinted at many new products later this year when
he said on the conference call that Apple will have a "very busy
In other news around the markets:
The Chinese Flash HSBC Manufacturing PMI fell to 47.7 for the first
half of July compared to the June reading of 48.2 on expectations
of a flat reading. However, this index focuses on smaller companies
so it is no surprise that the Chinese credit crunch is affecting
operations at these companies.Eurozone PMIs strongly beat
expectations in both the manufacturing and services sectors. The
flash reading of the manufacturing PMI rose to 50.1 for the first
half of July from 48.8 in June, beating expectations of a reading
of 49.1 while the services PMI rose to 49.6 from 48.3 on
expectations of a reading of 48.7. Japan's trade deficit in June
unexpectedly widened to 180.8 billion yen vs. the expected deficit
of 161 billion although it improved from May's deficit of 994
billion yen. S&P 500 futures rose 4.4 points to 1,690.20. The
EUR/USD was higher at 1.3239. Spanish 10-year government bond
yields rose 1 basis point to 4.69 percent. Italian 10-year
government bond yields were flat at 4.37 percent. Gold rose 0.49
percent to $1,341.70 per ounce.
Asian shares were mixed overnight as markets reacted to lots of
regional economic data. The Japanese Nikkei 225 Index declined 0.32
percent and the Topix Index fell 0.23 percent. In Hong Kong, the
Hang Seng Index rose 0.24 percent while the Shanghai Composite
Index fell 0.52 percent in China. Also, the Korean Kospi rose 0.42
percent and Australian shares gained 0.36 percent.
European shares were higher in early trade on the back of the
stronger than expected PMI data. The Spanish Ibex Index rose 1.11
percent and the Italian FTSE MIB Index gained 0.73 percent.
Meanwhile, the German DAX rose 0.61 percent and the French CAC 40
Index gained 0.9 percent while U.K. shares rose 0.61 percent.
Commodities were mixed overnight as gold futures rose while the
spot price fell. WTI Crude futures gained 0.02 percent to $107.25
per barrel and Brent Crude futures declined 0.42 percent to $107.96
per barrel. Copper futures rose 0.41 percent to $321.10 per pound.
Gold was higher and silver futures gained 0.15 percent to $20.29
Currency markets were on the move overnight as the yen and the
Aussie dollar weakened following economic data. The EUR/USD was
higher at 1.3239 and the dollar rose against the yen to 100.05.
Overall, the Dollar Index rose 0.11 percent on strength against the
yen, the Swiss franc, the Canadian dollar, and the pound. Also, the
Australian dollar was sharply weaker, declining 0.85 percent
against the U.S. dollar, 0.22 percent against the yen, and 0.96
percent against the euro.
Earnings Reported Yesterday
Key companies that reported earnings Tuesday include:
) reported third quarter EPS of $7.47 vs. $7.31 expected on revenue
of $35.3 billion vs. $35.09 billion expected. Norfolk Southern
) reported second quarter EPS of $1.46 vs. $1.49 expected on
revenue of $2.8 billion vs. $2.85 billion expected. Broadcom
) reported second quarter EPS of $0.70 vs. $0.68 expected on
revenue of $2.09 billion vs. $2.1 billion expected. FMC
) reported second quarter EPS of $0.44 vs. $0.47 expected on
revenue of $1.71 billion vs. $1.64 billion expected. VMware
) reported second quarter EPS of $0.79 vs. $0.77 expected on
revenue of $1.24 billion vs. $1.23 billion expected. Juniper
) reported second quarter EPS of $0.29 vs. $0.25 expected on
revenue of $1.15 billion vs. $1.09 billion expected.
Stocks moving in the pre-market included:
) shares rose 3.58 percent pre-market after the company beat
analyst estimates. VMware (NASDAQ:
) shares rose 12.02 percent pre-market after it also reported a
better than expected quarter. U.S. Steel (NYSE:
) shares declined 0.21 percent pre-market on China fears following
the weak Chinese PMI figure. Transition Therapeutics (NASDAQ:
) shares rose 22.42 percent pre-market after the company announced
a new licensing agreement with Eli Lilly (NYSE:
) after the close yesterday.
Notable companies expected to report earnings Wednesday
) is expected to report second quarter EPS of $1.21 vs. $1.24 a
year ago. Boeing (NYSE:
) is expected to report second quarter EPS of $1.57 vs. $1.27 a
year ago. Caterpillar (NYSE:
) is expected to report second quarter EPS of $1.70 vs. $2.54 a
year ago. Delta Airlines (NYSE:
) is expected to report second quarter EPS of $0.94 vs. $0.69 a
year ago. EMC (NYSE:
) is expected to report second quarter EPS of $0.42 vs. $0.39 a
year ago. Facebook (NASDAQ:
) is expected to report second quarter EPS of $0.14 vs. $0.12 a
year ago. Ford (NYSE:
) is expected to report second quarter EPS of $0.37 vs. $0.30 a
year ago. PepsiCo (NYSE:
) is expected to report second quarter EPS of $1.19 vs. $1.12 a
year ago. Qualcomm (NASDAQ:
) is expected to report third quarter EPS of $1.03 vs. $0.85 a year
ago. Visa (NYSE:
) is expected to report third quarter EPS of $1.79 vs. $1.56 a year
On the economics calendar Wednesday, MBA Purchase Applications
and the flash PMI Manufacturing Index is due out as well as new
home sales and a 5-year note auction. Overnight, the German IFO
Business Climate Index and the British GDP report are due out.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Tuesday's market action, read Benzinga's daily
market wrap .
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