Futures Higher on Global Services Data
U.S. equity futures rose in the pre-market after the Dow Jones
Industrial Average posted a new all time closing high and on the
back of stronger than expected services PMIs around the world.
Notably, the ISM Non-Manufacturing Index in the U.S. beat
expectations with employment and new orders sub-indexes remaining
In other news around the markets:
Eurozone GDP for the fourth quarter was confirmed at a 0.6 percent
contraction in the latest revision, in line with estimates and the
same as the prior estimate. Spanish Treasury Minister Montoro spoke
overnight saying that Spain's budget remains strong and any
revision to the deficit forecast for 2013 would be downwards from
the 6.7 percent estimate. Australian fourth quarter GDP was
reported as growing 0.6 percent in the quarter or 3.1 percent
annualized, in line with expectations though boosted by a 25
percent jump in government spending. Third quarter GDP growth was
revised higher to 0.7 percent from 0.5 percent. S&P 500 futures
rose 5.7 points to 1,542.80. The EUR/USD was lower at 1.3031.
Spanish 10-year government bond yields fell to 5.00 percent.
Italian 10-year government bond yields fell to 4.64 percent. Gold
fell 0.05 percent to $1,574.00 per ounce.
Asian shares were stronger overnight following the strength seen
in Europe and American stocks Tuesday on the back of strong
services data. The Japanese Nikkei Index rose 2.13 percent and the
Shanghai Composite Index rose 0.9 percent while the Hang Seng Index
gained 0.96 percent. Also, the Korean Kospi rose 0.2 percent and
Australian shares gained 0.86 percent.
European shares were higher led by German shares boosted by
industrial stocks. The Spanish Ibex Index rose 0.53 percent and the
Italian FTSE MIB Index rose 0.11 percent. Meanwhile, the German DAX
rose 0.98 percent and the French CAC rose 0.3 percent while U.K.
shares gained 0.23 percent.
Commodities were mostly lower overnight despite news that
Venezuelan President Hugo Chavez has died. WTI Crude futures fell
0.26 percent to $90.58 per barrel and Brent Crude futures fell 0.31
percent to $111.30. Copper futures declined 0.28 percent to $350.45
per pound despite stronger than expected Australian GDP data. Gold
was lower and silver futures rose 0.2 percent to $28.66.
Currency markets were relatively quiet overnight save for the
Swiss franc. The EUR/USD was lower at 1.3031 and the dollar gained
against the yen to 93.90. Overall, the Dollar Index rose 0.11
percent on strength against the Swiss franc, the pound, the euro
and the yen. Notably, the USD/CHF rose 0.4 percent and the EUR/CHF
rose 0.23 percent showing broad franc weakness.
Stocks moving in the pre-market included:
American Express (NYSE:
) rose 0.59 percent pre-market after announcing a new partnership
with Twitter. J.C. Penney (NYSE:
) shares continued to slide pre-market, declining 1.00 percent
after falling 10.63 percent Tuesday on news that Vornado (NYSE:
), a key ally of Bill Ackman's, sold its 10 million share stake.
Also, the company is in court with Macy's (NYSE:
) over the use of the Martha Stewart brand name. Vodaphone (NYSE:
) shares rose 1.57 percent pre-market on reports that the company
is considering selling its stake in Verizon (NYSE:
). Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shares rose 0.53
percent pre-market as Warren Buffett continues to hint that more
large deals are in the pipeline and continues to reject the idea of
Notable companies expected to report earnings Wednesday
American Eagle Outfitters (NYSE:
) is expected to report fourth quarter EPS of $0.56 vs. $0.35 a
year ago. Coca-Cola Bottling Co. (NASDAQ:
) is expected to report fourth quarter EPS of $0.60 vs. $0.20 a
year ago. PetSmart (NASDAQ:
) is expected to report fourth quarter EPS of $1.21 vs. $0.91 a
year ago. Staples (NASDAQ:
) is expected to report fourth quarter EPS of $0.45 vs. $0.41 a
year ago. Vail Resorts (NYSE:
) is expected to report second quarter EPS of $1.70 vs. $1.27 a
On the economics calendar Wednesday, MBA Purchase Applications
and ADP Payrolls are due out as well as Factory Orders and the
Beige Book. Also, Charles Plosser of the Philadelphia Fed is set to
speak and Richard Fisher of the Dallas Fed is set to speak twice.
In addition, the Treasury is set to auction STRIPS. Overnight,
Central Banks will be in focus as the Bank of Japan, Bank of
England, and the European Central Bank all are set to release
interest rate decisions.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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