Futures Higher Ahead of Key Economic Data, Earnings
U.S. equity futures rose in early pre-market trade ahead of key
earnings and economic data. The FOMC rate decision and policy
statement is due out later today as well as the ISM Manufacturing
Index and earnings from many key companies.
In other news around the markets:
The Chinese manufacturing sector expanded slower than expected in
April as the official manufacturing PMI slipped to 50.6 in April
from 50.9 in March and missed forecasts of a reading of 51.0.
However, the U.K. manufacturing sector contracted slower than
expected in April, as its manufacturing PMI rose to 49.8 from 48.6
on expectations of a reading of 48.5. Japanese labor cash earnings
fell less than expected from a year ago, showing potential signs of
life in the economy following the recent stimulus efforts. Cash
earnings fell 0.6 percent in April from the same period a year ago,
a slower decline than the 1.2 percent expected drop. Japanese
investors bought 1.55 billion euros of ESM and EFSF debt in April,
showing the beginning of the outflow of money. Outflows of domestic
money are a good indicator that Japan's stimulus efforts to inflate
itself out of recession through a weaker currency are working.
S&P 500 futures rose 1.6 points to 1,593.80. The EUR/USD was
higher at 1.3192. Gold rose 0.14 percent to $1,469.40 per ounce.
Asian shares were once again quiet as Chinese shares remained
closed for a week-long holiday and Korean and Hong Kong shares were
closed for the May Day holiday. The Japanese Nikkei Index fell 0.44
percent following the weaker than expected Chinese manufacturing
PMI. Australian shares also fell 0.48 percent overnight on China
European markets were also mostly closed for the May Day
holiday, with all major markets save for the U.K. closed. The FTSE
100 Index rose 0.44 percent following the better than expected
manufacturing PMI in the U.K. Materials stocks, specifically gold
miners and copper miners, were notably strong overnight.
Commodities were mostly lower overnight following the weaker
than expected Chinese manufacturing PMI, however precious metals
did rise in increased central bank easing hopes. WTI Crude futures
fell 0.79 percent to $92.72 per barrel and Brent Crude futures fell
0.67 percent to $101.68 per barrel. Copper futures declined 1.11
percent to $315.20, Gold was higher, and silver futures rose 0.47
percent to $24.28 per ounce.
Currency markets were quiet overnight despite all of the
economic data as many foreign markets were closed. The EUR/USD was
higher at 1.3192 and the dollar rose against the yen to 97.60.
Overall, the Dollar Index fell 0.18 percent on weakness against the
pound, the euro, the Canadian dollar and the Swiss franc.
Earnings Reported Yesterday
Key companies that reported earnings Tuesday include:
) reported first quarter EPS of $1.44 vs. $1.86 on revenue of $3.92
billion vs. $3.97 billion. McGraw-Hill (NYSE:
) reported first quarter EPS of $0.80 vs. $0.73 on revenue of $1.18
billion vs. $1.17 billion. Marathon Petroleum Corp. (NYSE:
) reported first quarter EPS of $2.17 vs. $2.16 on revenue of $23.3
billion vs. $19.8 billion. Valero (NYSE:
) reported first quarter EPS of $1.18 vs. $0.98 on revenue of
$33.47 billion vs. $30.41 billion expected. Vertex Pharmaceuticals
) reported first quarter EPS of $0.03 vs. an expected loss of $0.19
per share on revenue of $328.4 million vs. $308.02 million.
Stocks moving in the pre-market included:
Knight Capital Group (NYSE:
) shares fell 0.56 percent ahead of its earnings release. Vertex
) shares rose 0.36 percent pre-market as the company unexpectedly
reported a quarterly profit per share. Apple (NASDAQ:
) shares rose 0.12 percent pre-market after the company sold $17
billion in bonds of multiple maturities with 10-year yields pricing
at 2.415 percent.
Notable companies expected to report earnings Wednesday
) is expected to report first quarter EPS of $0.68 vs. $0.54 a year
ago. Chesapeake Energy (NYSE:
) is expected to report first quarter EPS of $0.25 vs. $0.18 a year
ago. CVS (NYSE:
) is expected to report first quarter EPS of $0.79 vs. $0.65 a year
ago. Facebook (NASDAQ:
) is expected to report first quarter EPS of $0.13. Humana (NYSE:
)is expected to report first quarter EPS of $1.81 vs. $1.49 a year
ago. MasterCard (NYSE:
) is expected to report first quarter EPS of $6.17 vs. $5.36 a year
ago. Time Warner (NYSE:
) is expected to report first quarter EPS of $0.74 vs. $0.67 a year
ago. Visa (NYSE:
) is expected to report second quarter EPS of $1.81 vs. $1.60 a
On the economics calendar Wednesday, MBA Purchase Applications,
the ADP Employment Report, and the U.S. Manufacturing PMI kick off
the data docket followed by the ISM Manufacturing Index and
Construction Spending data. Later this afternoon, the FOMC rate
decision and policy statement is set to be released. Overnight,
Bank of Canada Governor Mark Carney is expected to speak and
Japanese monetary base data is due out. Also, the BoJ minutes, the
HSBC China Manufacturing PMI, and the Eurozone Manufacturing PMI
are all due out ahead of the ECB rate decision.
Good luck and good trading.
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