Stocks are higher today ahead of a key report on consumer
The final reading of the Reuters/University of Michigan Consumer
Sentiment index for June is due out later this morning. Economists
predict that it will show a slight improvement over the preliminary
reading. They expect it to hit 83, down slightly from May's 84.5
The major stock indices are poised for a fourth straight day of
(INDEXDJX:.DJI) futures were up 0.23% at 14,971 this morning.
Futures contracts on the
(INDEXSP:.INX) gained 0.30% to 1,611.50.
(INDEXNASDAQ:.IXIC) futures climbed 0.26% to 2,907.00.
Safe-haven assets had another poor day today. Gold prices continued
to fall overnight. Spot gold broke through the $1,200/ounce
milestone, but recovered a bit. This morning, the yellow metal
traded down 0.74% at $1,202.60. Treasuries also sold off with the
10-year yield rising 13 basis points to 2.46%.
Asian markets ended the day higher. The consistently volatile
(INDEXNIKKEI:.NI225) rallied 3.5% after a huge economic data dump.
Consumer prices rose only 0.1% monthly in May. On a yearly basis,
deflation slowed to 0.3% from 0.7% in April as the government tries
to stimulate the economy. Household spending was down 1.6% though,
and the unemployment rate ticked up 0.1% to 4.1%. Industrial
production rose 2% in May after April's 1.7% rise, but fell 1% from
a year ago. Retail sales rose 0.8%, following a slight decline in
European shares mostly fell while leaders discussed cutting some of
the region's red tape. France's debt to GDP ratio reached an
all-time high of 91.7%, up from 90.2%. This is expected to reach
94% by next year. Today, President Francois Hollande said that the
recession and lower tax revenue mean that France will probably miss
their deficit target of 3.7%. Retail sales in Germany also
recovered in May, rising 0.8% after falling 0.4% in April.
At the European Union Summit, Latvia was cleared for entry to the
eurozone currency union and Croatia became a member of the EU.
Research In Motion Ltd
) shares plunged 18.9% in the pre-market after reporting
disappointing first-quarter earnings. The smartphone maker shipped
6.8 million handsets in the quarter and generated $3.1 billion in
revenue, a 15% rise from the previous quarter. But it lost $84
million or $0.13 per share, missing estimates. The company didn't
specify how many new BlackBerry 10 devices it sold.
) shares fell 1.3% despite reporting a 22% rise in profitability.
The sports apparel company beat expectations with $0.76 in earnings
per share. Sales in North America rose 12%, but the company was
forced to resort to discounts in China, where sales were flat.
) shares advanced 1.14% in the pre-market after the company
announced that it will buy back $10 billion in stock.
Disclosure: Minyanville Studios, a division of Minyanville
Media, has a business relationship with BlackBerry.