Although US markets close at 1:00 p.m. ET on Thursday for the
Independence Day holiday, the short day will be jam packed with
market moving economic data.
Most notably will be US non-farm payrolls data which is expected
to show a fifth straight week of gains above 200,000.
Most analysts expect that US employers added between 210,000 and
213,000 jobs in June, an impressive figure that would solidify
hopes that the US' recovery was moving in the right direction.
In other news around the markets:
After Ukrainian President Petro Poroshenko ended the ceasefire
between rebel groups and government forces by launching a renewed
offensive, Moscow and Kiev continued to try to negotiate a lasting
peace agreement. With the help of officials from both Germany and
France, Foreign Ministers from both Russia and Ukraine worked to
create terms for a new ceasefire by July 5. The European Central
Bank is set to hold its monthly policy meeting on Thursday; with
most expecting that the bank will not make any major changes.
However, the press conference following the meeting will be closely
watched as investors wonder whether or not Draghi will open the
door to the possibility of a large-scale quantitative easing
program in the future. Speaking at the International Monetary Fund,
Federal Reserve Chair Janet Yellen voiced her discomfort with the
idea of raising interest rates in order to keep the nation from
slipping into another financial crisis. Instead, Yellen defended
the idea of further regulation as a tool to sure up the system and
make it more able to weather financial storms. China's HSBC
services PMI increased to 53.1 in June, up from May's 50.7 reading
and the nation's highest reading in more than a year. The data
further confirmed that Beijing's mini-stimulus plan is setting in
and boosting the economy. However, many are still anxious about the
China's strength as although recent economic data has been pointing
to modest economic growth, the overall recovery is still
viewed as weak.
Asian markets were mixed; the NIKKEI was down 0.16 percent, the
Kospi lost 0.33 percent and the Hang Seng index fell 0.09 percent.
However the Shanghai composite was up 0.21 percent and the Shenzhen
composite gained 0.97 percent.
Europe's markets were mostly higher, the FTSE gained 0.35
percent, the STOXX 600 was up 0.19 percent, the DAX rose 0.33
percent and the CAD 40 was up 0.38 percent.
Oil futures were lower on Thursday morning, Brent figures lost
0.16 percent and WTI futures were down 0.39 percent. Gold and
silver lost 0.56 percent and 0.78 percent respectively, while
industrial metals gained. Aluminum was up 2.07 percent, zinc gained
2.86 percent and tin rose 0.99 percent.
The euro lost its footing ahead of the ECB meeting and traded at
$1.3648, down 0.08 percent. The dollar gained 0.11 percent against
the yen, 0.07 percent against the pound and 0.71 percent against
the Australian dollar.
Notable earnings released on Wednesday included:
Synnex Corporation (NYSE:
) reported second quarter EPS of $1.52 on revenue of $3.45 billion,
compared to last year's EPS of $0.81 on revenue of $2.59 billion.
UniFirst Corporation (NYSE:
) reported third quarter EPS of $1.53 on revenue of $352.20
million, compared to last year's EPS of $1.43 on revenue of $335.76
million. Constellation Brands (NYSE:
) reported first quarter EPS of $1.07 on revenue of $1.53 billion,
compared to last year's EPS of $0.38 on revenue of $673.40 million.
Stocks moving in the Premarket included:
Constellation Brands (NYSE:
) was up 6.94 percent in premarket trade after gaining 2.34 percent
on Wednesday. Darden Restaurants (NYSE:
) gained 1.67 percent in premarket trade after falling 0.67 percent
over the past five days. Delta Air Lines (NYSE:
) was down 3.20 percent in premarket trade after losing 5.14
percent on Wednesday Harley-Davidson (NYSE:
) fell 2.32 percent in premarket trade after losing 3.60 percent on
No notable earnings releases expected on Thursday.
US non-farm payrolls data will be the star of Thursday's
economic calendar as most are expecting the figures to indicate
that the region's recovery is on solid ground. Investors will also
be watching the European Central Bank as it holds its monthly
policy meeting. Other notable economic releases include services
PMI from the US, the UK, Germany, France , Italy and Spain, and the
US unemployment rate.
For a recap of Wednesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Marc Faber,
Rachel Fox & Tim Melvin by clicking
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