Futures Higher Heading Into FOMC Decision, Second Quarter
U.S. equity futures rose slightly in early pre-market trade
ahead of some key economic data from around the world. Also, the
FOMC rate decision is due out today after the first look at second
quarter GDP but there will be no press conference at this meeting
and the Bank of England and European Central Bank decision are due
out early Thursday.
In other news around the markets:
The number of people claiming unemployment benefits in Germany in
July unexpectedly fell 7 thousand on expectations of a flat reading
but was worse than June's decline of 12 thousand. The unemployment
rate was in line with expectations and flat month-over-month at 6.8
percent. The unemployment situation across the eurozone was
slightly better than expected in June as the unemployment rate was
12.1 percent, better than the forecast for a 12.2 percent reading
and flat from May's downwardly revised 12.1 percent (was previously
estimated at 12.2 percent). China's Xu of the National Reform and
Development Commission spoke overnight, saying that the government
is committed to the reforms which will bring a consumption based
economy despite the negative impact it may have in the short run.
The government will proactively boost domestic demand and support
smaller companies. S&P 500 futures rose 1.7 points to 1,686.40
per ounce. The EUR/USD was higher at 1.3280. Spanish 10-year
government bond yields rose 1 basis point to 4.67 percent. Italian
10-year government bond yields rose 1 basis point to 4.41 percent.
Gold rose 0.63 percent to $1,333.20 per ounce.
Asian shares were mixed overnight as Japanese shares sold off on
news that the government will stand by its policy to increase the
sales tax in April 2014 to lower deficits. The Japanese Nikkei 225
Index fell 1.45 percent and the Topix Index declined 1.47 percent.
In Hong Kong, the Hang Seng Index fell 0.32 percent while the
Shanghai Composite Index rose 0.19 percent in China. Also, the
Korean Kospi fell 0.16 percent and Australian shares gained 0.69
European shares were mixed heading into the key U.S. data after
European data was roughly in line with expectations. The Spanish
Ibex Index fell 0.35 percent and the Italian FTSE MIB Index
declined 0.25 percent. Meanwhile, the German DAX rose 0.12 percent
and the French CAC 40 Index rose 0.18 percent while U.K. shares
gained 0.62 percent.
Commodities were mostly higher overnight as metals rose into the
Fed's meeting. WTI Crude futures gained 0.4 percent to $103.49 per
barrel and Brent Crude futures fell 0.27 percent to $106.62 per
barrel. Copper futures rose 1.27 percent to $308.05 per pound. Gold
was higher and silver futures jumped 1.14 percent to $19.91 per
Currency markets were on the move overnight as the dollar
weakened ahead of the GDP report and the Fed. The EUR/USD was
higher at 1.3280 and the dollar fell against the yen to 97.67.
Overall, the Dollar Index declined 0.09 percent on weakness against
the yen, the Swiss franc, the Canadian dollar and the euro despite
strength against the pound.
Earnings Reported Yesterday
Key companies that reported earnings Tuesday include:
) reported second quarter EPS of $0.84 vs. $0.83 expected on
revenue of $11.00 billion vs. $11.22 billion. Pfizer (NYSE:
) reported second quarter EPS of $0.56 vs. $0.55 expected on
revenue of $12.97 billion vs. $13.03 billion expected. Amgen (NYSE:
) reported second quarter EPS of $1.89 vs. $1.74 expected on
revenue of $4.68 billion vs. $4.49 billion expected. Aetna (NYSE:
) reported second quarter EPS of $1.52 vs. $1.41 expected on
revenue of $11.54 billion vs. $11.99 billion a year ago.
Stocks moving in the pre-market included:
Cubist Pharmaceuticals (NASDAQ:
) shares rose 5.74 percent pre-market after the company
announced two acquisitions that have a combined
total maximum price of just over $1.6 billion
. Trius Therapeutics (NASDAQ:
) shares gained 17.42 percent pre-market as Cubist announced that
it was buying the company for $13.50 per share plus a contingent
right value (
) worth an additional $2 in cash dependent on certain sales
figures. Optimer Pharmaceuticals (NASDAQ:
) shares fell 7.83 percent pre-market as Cubist announced that it
was buying the company for $10.75 per share in cash with a CVR
worth an additional $5. Potash (NYSE:
) shares fell 0.89 percent pre-market after the large drop the day
before as market prices for its fertilizers will fall. Mosaic
), Agrium (NYSE:
), and Intrepid Potash (NYSE:
) were all slightly higher pre-market.
Notable companies expected to report earnings Wednesday
) is expected to report second quarter EPS of $6.30 vs. $5.65 a
year ago on revenue of $2.00 billion vs. $1.82 billion a year ago.
) is expected to report second quarter EPS of $1.33, flat from a
year ago, on revenue of $17.33 billion vs. $16.79 billion a year
ago. Comcast (NASDAQ:
) is expected to report second quarter EPS of $of $0.63 vs. $0.50 a
year ago on revenue of $16.01 billion vs. $15.21 billion a year
ago. Hess Corp. (NYSE:
) is expected to report second quarter EPS of $1.40 vs. $1.72 a
year ago on revenue of $4.62 billion vs. $9.31 billion a year ago.
) is expected to report second quarter EPS of $0.72 vs. $0.65 a
year ago on revenue of $3.52 billion.
On the economics calendar Wednesday, MBA Purchase Applications
and the ADP Employment Report kick off a heavy economic calendar
followed by the first estimate of second quarter GDP, the
employment cost index, the Treasury refunding announcement, and the
Chicago PMI. Later, the FOMC rate decision is due out. Overnight,
manufacturing PMIs from China, the eurozone, France, Germany,
Italy, Spain and the U.K. are due out as well as 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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