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Benzinga Market Primer: Thursday, July 25: Futures Lower After Technical Breakdown
Futures Lower After Technical Breakdown
U.S. equity futures traded lower in early pre-market trade after breaking below a key technical level Wednesday which saw U.S. stocks close lower. S&P 500 futures fell below the key 1685 level which was acting as support over the last few days and potentially signal a bearish outside reversal, which could imply a correction is due.
In other news around the markets:The German IFO Business Climate Index for July came in roughly in line with expectations overnight. The index rose to 106.2 from 105.9 in June on expectations of a reading of 106.1 as the IFO hinted that both the current conditions of the German economy and the future outlook were both better than expected. England's economy grew 0.6 percent in the second quarter, in line with estimates, an upward revision from the prior estimate of 0.3 percent. The annualized figure came in at 1.4 percent, which was also in line with estimates. The Spanish unemployment rate unexpectedly fell for the first time in two years in the second quarter as the rate fell to 26.26 percent from 27.16 percent on expectations of a jump to 27.2 percent. However, Spain's unemployed still account for about a third of the total number of unemployed persons across the eurozone. S&P 500 futures fell 7.3 points to 1,676.50. The EUR/USD was lower at 1.3185. Spanish 10-year government bond yields rose 1 basis point to 4.69 percent. Italian 10-year government bond yields rose 1 basis point to 4.38 percent. Gold fell 0.02 percent to $1,319.90 per ounce.
Asian shares were mostly lower overnight after the sell-off in the U.S. The Japanese Nikkei 225 Index fell 1.14 percent and the Topix Index declined 1.44 percent. In Hong Kong, the Hang Seng Index fell 0.31 percent while the Shanghai Composite Index fell 0.6 percent in China. Also, the Korean Kospi declined 0.13 percent and Australian shares closed roughly flat.
European shares were also lower in early trade following the broad negative global sentiment in markets. The Spanish Ibex Index fell 0.27 percent and the Italian FTSE MIB Index declined 0.64 percent. Meanwhile, the German DAX fell 0.93 percent and the French CAC 40 Index declined 0.5 percent while U.K. shares fell 0.69 percent.
Commodities were mostly lower overnight in a broad risk-off trade globally. WTI Crude futures fell 0.47 percent to $104.89 per barrel and Brent Crude futures declined 0.43 percent to $106.73 per barrel. Copper futures fell 0.25 percent to $317.10 per pound. Gold was lower and silver futures rose 0.07 percent to $20.04 per ounce.
Currency markets were on the move overnight as the yen and the dollar gained in a clear risk-off trade. The EUR/USD was lower at 1.3185 and the dollar fell against the yen to 99.90. Overall, the Dollar Index was flat on strength against the euro, the Swiss franc, and the pound despite weakness against the yen and the Canadian dollar.
Key companies that reported earnings Wednesday include:Ford (NYSE: F ) reported second quarter EPS of $0.45 vs. $0.37 expected on revenue of $38.1 billion. Boeing (NYSE: BA ) reported second quarter EPS of $1.67 vs. $1.58 expected on revenue of $21.8 billion vs. $20.78 billion expected. PepsiCo (NYSE: PEP ) reported second quarter EPS of $1.31 vs. $1.19 expected on revenue of $16.81 billion vs. $16.79 billion expected. Delta Airlines (NYSE: DAL ) reported second quarter EPS of $0.98 vs. $0.95 expected on revenue of $9.71 billion vs. $9.74 billion expected. Facebook (NASDAQ: FB ) reported second quarter EPS of $0.19 vs. $0.14 expected on revenue of $1.81 billion vs. $1.61 billion expected. Eli Lilly (NYSE: LLY ) reported second quarter EPS of $1.16 vs. $1.01 expected on revenue of $5.92 billion vs. $5.82 billion expected. Qualcomm (NASDAQ: QCOM ) reported third quarter EPS of $1.03, in line, on revenue of $6.24 billion vs. $6.05 billion expected. Visa (NYSE: V ) reported third quarter EPS of $1.88 vs. $1.79 expected on revenue of $3.00 billion vs. $2.89 billion expected.
Stocks moving in the pre-market included:Facebook (NASDAQ: FB ) shares rose 16.94 percent pre-market on better than expected earnings. Visa (NYSE: V ) shares rose 2.01 percent pre-market after posting better than expected third quarter results. McDonald's (NYSE: MCD ) shares fell 1.6 percent pre-market following a series of negative analyst actions after its weak earnings report earlier this week. Cabot Oil and Gas (NYSE: COG ) shares rose 2.08 percent pre-market after the company announced that it has added a sixth drilling rig in the Marcellus Shale.
Notable companies expected to report earnings Thursday include:Amazon (NASDAQ: AMZN ) is expected to report second quarter EPS of $0.06 vs. $0.01 a year ago on revenue of $15.74 billion vs. $12.83 billion a year ago. Bristol-Myers Squibb (NYSE: BMY ) is expected to report second quarter EPS of $0.44 vs. $0.48 a year ago on revenue of $4.05 billion vs. $4.44 billion a year ago. General Motors (NYSE: GM ) is expected to report second quarter EPS of $0.75 vs. $0.90 a year ago on revenue of $38.37 billion vs. $37.6 billion a year ago. Biogen Idec (NASDAQ: BIIB ) is expected to report second quarter EPS of $1.93 vs. $1.82 a year ago on revenue of $1.62 billion vs. $1.42 billion a year ago. Dow Chemical (NYSE: DOW ) is expected to report second quarter EPS of $0.63 vs. $0.55 a year ago on revenue of $14.48 billion vs. $14.51 billion a year ago. 3M (NYSE: MMM ) is expected to report second quarter EPS of $1.71 vs. $1.66 a year ago on revenue of $7.77 billion vs. $7.53 billion a year ago. Starbucks (NASDAQ: SBUX ) is expected to report second quarter EPS of $0.53 vs. $0.43 a year ago on revenue of $3.72 billion vs. $3.3 billion a year ago. Boston Scientific (NYSE: BSX ) is expected to report second quarter EPS of $0.09 vs. $0.11 a year ago on revenue of $1.78 billion vs. $1.83 billion a year ago. Celgene (NASDAQ: CELG ) is expected to report second quarter EPS of $1.44 vs. $1.22 a year ago on revenue of $1.54 billion vs. $1.37 billion a year ago. Cliffs Natural Resources (NYSE: CLF ) is expected to report second quarter EPS of $0.62 vs. $1.63 a year ago on revenue of $1.42 billion vs. $1.63 billion a year ago.
On the economics calendar Thursday, the durable goods orders report is due out alongside initial jobless claims. Later, the Kansas City Fed Manufacturing Report is expected as well as a 7-year note auction from the Treasury. Overnight, Japanese CPI data is due out.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and Joel Elconin here .
For a recap of Wednesday's market action, read Benzinga's daily market wrap .
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