Futures Drop Into Shortened Trading Day On Weak Services PMIs,
U.S. equity futures declined in early pre-market trade ahead of
the shortened trading day on weaker than expected services PMIs
around the globe. Weak data from China to the eurozone weighed on
In other news around the markets:
The official China Non-Manufacturing PMI slipped to 53.9 in June
from 54.3 in May, a four-month low, while the HSBC China
Non-Manufacturing PMI rose to 51.3 from 51.2 but the weakness in
the official number weighed on markets. In the eurozone, the
Eurozone Non-Manufacturing PMI rose to 48.3 from 47.2 in May but
missed expectations of a reading of 48.6, which was the flash
reading earlier this month. Strength in Spain once again was offset
by weakness in Germany and Italy. England's Non-Manufacturing PMI
rose sharply in June, however, rising to 54.9 from 52.9 on
expectations of a reading of 53.0, rising to a 16-month high. Fears
over political turmoil around the world also weighed on futures as
the Government of Egyptian President Muhammed Morsi is falling
apart while Prime Minister Pedro Passos Coelho's government in
Portugal is also teetering as two key ministers quit, jeopardizing
the coalition government. S&P 500 futures fell 10.2 points to
1,597.00. The EUR/USD was lower at 1.2952. Spanish 10-year
government bond yields rose 11 basis points to 4.73 percent on the
Portugal news. Italian 10-year government bond yields rose 9 basis
points to 4.53 percent. Gold rose 0.18 percent to $1,245.70 per
Asian shares were mostly lower on the global geopolitical news
and on the weak PMI data. The Japanese Nikkei 225 Index declined
0.31 percent and the Topix Index rose 0.17 percent. In Hong Kong,
the hang Seng Index fell 2.48 percent while in China, the Shanghai
Composite Index declined 0.61 percent. Also, the Korean Kospi fell
1.64 percent and Australian shares dropped 1.86 percent.
European shares were also sharply lower overnight on similar
fears. The Spanish Ibex Index declined 2.48 percent and the Italian
FTSE MIB Index fell 1.6 percent. Meanwhile, the German DAX dropped
1.38 percent and the French CAC 40 Index fell 1.31 percent while
U.K. shares declined 1.38 percent.
Commodities were higher overnight as WTI Crude futures rose
through $100 per barrel. WTI Crude futures rose 1.39 percent to
$100.98 per barrel and Brent Crude futures gained 0.58 percent to
$104.60 per barrel. Copper futures gained 0.48 percent to $315.80
per pound. Gold was higher and silver futures gained 1.04 percent
to $19.51 per ounce.
Currency markets were on the move overnight as the yen reversed
most of Tuesday's losses in a clear risk-off environment. The
EUR/USD was lower at 1.2952 and the dollar dropped 0.82 percent
against the yen to 99.80. Overall, the Dollar Index declined 0.06
percent on weakness against the yen, the pound, the Canadian
dollar, and the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Tuesday include:
Constellation Brands (NYSE:
) reported first quarter EPS of $0.38 vs. $0.40 expected on revenue
of $673.0 million vs. $674.25 million expected. Acuity Brands
) reported third quarter EPS of $0.97 vs. $0.88 expected on revenue
of $541.5 million vs. $518.76 million expected.
Stocks moving in the pre-market included:
Credit Suisse (NYSE:
) shares declined 2.57 percent pre-market after S&P downgraded
the bank to A- from A. Deutsche Bank(NYSE:
) shares declined 2.99 percent pre-market as S&P also cut its
rating to A from A+ Tuesday after the close. Barclays (NYSE:
) shares dropped 2.41 percent pre-market as the company too was cut
by S&P to A from A+.
Notable companies expected to report earnings Wednesday
International Speedway (NASDAQ:
) is expected to report second quarter EPS of $0.50 vs. $0.52 a
year ago on revenue of $182.3 million vs. $179.6 million a year
On the economics calendar Wednesday, MBA Purchase Applications
are due out followed by the Challenger Job Cut Report and the ADP
Employment Report. Also, international trade data, jobless claims,
the ISM Non-Manufacturing Index, and the EIA Petroleum and Nat Gas
Reports are due out. Overnight, watch for the Bank of England and
European Central Bank rate decisions.
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 .
(c) 2013 Benzinga.com. Benzinga does not provide investment
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