Futures Higher After Asia Turnaround
U.S. equity futures rose slightly in early pre-market trade as
Asian shares reversed losses from Monday and rose overnight. Market
now look to earnings and the flood of economic data that begins
today and continues through the rest of the week for direction.
In other news around the markets:
J.P. Morgan Chase (NYSE:
) was charged by regulators of manipulating the power market and
costing citizens over $70 million in additional power costs.
Overnight, the People's Bank of China injected funds into the
short-term lending market for the first time since February,
finally acting to ease credit conditions. RBA Governor Glenn
Stevens spoke overnight and hinted at more rate cuts to come at the
August 6 meeting of the central bank. S&P 500 futures rose 0.7
points to 1,683.20. The EUR/USD was higher at 1.3273. Spanish
10-year government bond yields were flat at 4.68 percent. Italian
10-year government bond yields were flat at 4.46 percent. Gold fell
0.41 percent to $1,324.10 per ounce.
Asian shares were higher overnight on some positive economic
news and also on a reversal of Monday's losses. The Japanese Nikkei
225 Index gained 1.53 percent and the Topix Index rose 1.78
percent. In Hong Kong, the Hang Seng Index rose 0.48 percent and
the Shanghai Composite Index rose 0.7 percent in China. Also, the
Korean Kospi rose 0.9 percent and Australian shares rose 0.02
European shares mixed but roughly unchanged in early trade on
little news. The Spanish Ibex Index fell 0.12 percent and the
Italian FTSE MIB Index rose 0.1 percent. Meanwhile, the German DAX
rose 0.08 percent while the French CAC 40 Index fell 0.03 percent
and U.K. shares rose 0.14 percent.
Commodities were lower overnight as the dollar gained back some
losses. WTI Crude futures fell 0.68 percent to $103.84 per barrel
and Brent Crude futures declined 0.2 percent to $107.24 per barrel.
Copper futures fell 0.84 percent to $308.15 per pound. Gold was
lower and silver futures declined 1.33 percent to $19.60 per
Currency markets were on the move as the Aussie dollar plunged
on comments from Governor Stevens. The EUR/USD was higher at 1.3273
and the dollar rose against the yen to 98.03. Overall, the Dollar
Index rose 0.1 percent on strength against the pound, the Canadian
dollar, and the yen. Notably, the AUD/USD declined 1.5 percent to
0.9068 and the AUD/JPY fell 1.41 percent to 88.9070.
Earnings Reported Yesterday
Key companies that reported earnings Monday include:
) reported second quarter EPS of $1.41 vs. $1.18 expected on
revenue of $1.22 billion vs. $1.16 billion expected. Wynn Resorts
) reported second quarter EPS of $1.51 vs. $1.57 expected on
revenue of $1.33 billion vs. $1.34 billion expected. U.S. Steel
) reported a second quarter loss of $0.54 per share vs. an expected
loss of $0.79 per share on revenue of $4.43 billion vs. $4.61
billion expected. Roper Industries (NYSE:
) reported second quarter EPS of $1.16 vs. $1.30 expected on
revenue of $784 million vs. $806.67 million expected.
Stocks moving in the pre-market included:
) shares fell 6.28 percent as the world's largest potash produced,
OAO Uralkali forecast global prices will fall 25 percent. Potash
) shares fell 9.23 percent pre-market on the same news. Herbalife
) shares rose 5.42 percent pre-market after reporting better than
expected earnings and raising full year guidance. Alcoa (NYSE:
) rose 0.5 percent pre-market after U.S. Steel (NYSE:
) reported a narrower than expected loss and also on its newly
announced $1 billion accelerated buyback program.
Notable companies expected to report earnings Tuesday
) is expected to report second quarter EPS of $1.13 vs. $1.16 a
year ago on revenue of $62.35 billion vs. $99.34 billion a year
ago. Pfizer (NYSE:
) is expected to report second quarter EPS of $0.55 vs. $0.62 a
year ago on revenue of $13.03 billion vs. $15.06 billion a year
ago. Aetna (NYSE:
) is expected to report second quarter EPS of $1.40 vs. $1.31 a
year ago on revenue of $11.9 billion vs. $8.83 billion a year ago.
) is expected to report second quarter EPS of $0.83 vs. $1.05 a
year ago on revenue of $11.22 billion vs. $12.31 billion a year
ago. Dollar General (NYSE:
) is expected to report second quarter EPS of $0.74 vs. $0.69 a
year ago on revenue of $4.36 billion vs. $3.95 billion a year ago.
On the economics calendar Tuesday, the weekly Redbook is due out
followed by the S&P Case-Shiller Home Price Index and the CB
Consumer Confidence Report. The Treasury is also expected to
auction 4-week bills. Overnight, the German retail sales and
unemployment reports are due out.
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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