Stocks rose this morning as PMI surveys pointed to Europe's
recession ending soon and key companies reported strong earnings.
PMI numbers from across Europe lifted markets early this morning,
raising hopes that the end of the eurozone recession is within
sight. July manufacturing and services numbers mostly came ahead of
expectations. Here are the some highlights from Markit:
- Germany: The overall private sector rose to 52.8, up from
50.4 in June. Manufacturing hit 50.3 and services jumped 2.1
points to 52.5. (Numbers above 50 indicate expansion.)
- France: Private sector PMI rose to 48.8 from 47.4, the
slowest rate of deterioration in 17 months. Manufacturing rose to
1.4 points to 49.8 and services rose a point to 48.2. This echoes
finance minister Pierre Moscovici, who said recently that France
probably already came out of recession.
- Composite Eurozone PMI rose to 50.4 from 48.7, an 18-month
high. Manufacturing hit a two-year high of 50.1 and services rose
China sent the opposite signal, however. HSBC's manufacturing flash
PMI fell to an 11-month low of 47.7, an even deeper contraction
In corporate news,
), a global economic bellwether, missed per-share earnings
estimates by $0.26. It earned $1.45 per share over the second
quarter on $14.6 billion in sales. Analysts forecast $15.03 billion
) beat Wall Street's expectations and raised its forecast for the
full year. The company earned $0.30 per share, matching the
year-before period. It had strong sales in North America, where
pickup truck sales increased 22%, but it lost $348 million in
Europe. Based on its second quarter performance, Ford projects
full-year profit to match last year's $8 billion. Shares are up 3%
in pre-market trading.
) shares are up 4.71% to $438.98 after reporting
better-than-expected earnings yesterday. Apple sold 31.2 million
iPhones in its third fiscal quarter, up from 26 million a year ago.
Earnings per share came in at $7.47 as revenue rose 1% to $35.3
billion. One concern that CEO Tim Cook brought up in the call was a
downturn in sales in China. "We saw some dramatic downturn there.
It's not totally clear exactly why that occurred," Cook said.
Given its large weight in major indices, Apple's rise helped drive
up stock futures. Before the opening bell,
(INDEXDJX:.DJI) futures were up 0.23% at 15,548. Futures contracts
(INDEXSP:.INX) rose 0.37% to 1,694.50 and
(INDEXNASDAQ:.IXIC) futures climbed 0.98% to 3,055.75.
Later this morning, Markit will release its US manufacturing flash
PMI reading. It is expected to rise 0.6 points to 52.8. New home
sales data is also due out at 10 a.m. Economists estimate that new
homes sold at an annual rate of 481,000 in June, up from 476,000 in
After the bell today,
(ZNGA) are among the companies reporting earnings.