Benzinga Market Primer: Monday, June 3

Futures Slightly Higher as Global Shares Drop

U.S. equity futures traded slightly higher in early pre-market trade despite weakness elsewhere around the world. Better than expected manufacturing PMIs across the eurozone are helping to prop assets despite sustained weakness in emerging markets ahead of what Soc Gen this weekend called an impending "rout of emerging market currencies."

Top News

In other news around the markets:

• The Eurozone Manufacturing PMI rose to 48.3 in May from 47.8 in April on expectations of a flat reading with all major countries reporting better than expected results in the report. However, it still shows contraction in the manufacturing sector across Europe.


• England's Manufacturing PMI was also released this morning and showed further strength in the European economy as the PMI rose to 51.3 in May from an upwardly revised 50.2 in April on expectations of a reading of 50.2.


• Protests in Turkey continued Monday as the Lira fell against the dollar for a fifth day and 2-year note yields climbed 39 basis points. Protesters took to the streets in major cities such as Ankara and Istanbul in opposition of Prime Minister Erdogan, whom they want to resign.


• S&P 500 futures rose 2.6 points to 1,631.60.


• The EUR/USD was higher at 1.3024.


• Spanish 10-year government bond yields rose 1 basis point to 4.45 percent.


• Italian 10-year government bond yields rose 2 basis points to 4.17 percent.


• Gold rose 0.27 percent to $1,396.70 per ounce.

Asian Markets

Asian shares traded mostly lower overnight as the Japanese Nikkei Index recorded its fourth loss in eight trading days and has lost some 17 percent over the span. The Nikkei declined 3.72 percent while the Shanghai Composite Index eked out a gain of 0.02 percent as the Hang Seng Index declined 0.49 percent. Also, the Korean Kospi fell 0.57 percent and Australian shares lost 0.78 percent.

European Markets

European shares traded lower in early trading but have bounced off of the lows of the day following the stronger than expected PMI reports across the continent. The Spanish Ibex Index declined 0.54 percent and the Italian FTSE MIB Index fell 0.76 percent. Meanwhile, the German DAX lost 0.66 percent and the French CAC 40 declined 0.75 percent while U.K. shares lost 0.54 percent.

Commodities

Commodities were mostly higher overnight on the back of the stronger than expected Manufacturing PMI's and also as the dollar weakened. WTI Crude futures were flat at $91.97 per barrel and Brent Crude futures rose 0.16 percent to $100.15 per barrel. Copper futures gained 1.35 percent to $333.70 per pound. Gold was higher and silver futures rose 0.66 percent to $22.39 per ounce.

Currencies

Currency markets saw some interesting moves overnight as the dollar weakened and the yens strengthened. The EUR/USD was higher at 1.3024 and the dollar fell against the yen to 100.34. Overall, the Dollar Index fell 0.34 percent on weakness against the pound, the euro, and the yen. Notably, the pound gained 0.44 percent against the dollar to 1.5265 and the Aussie dollar saw particular strength as it rose against the yen by 0.66 percent to 96.7610 and against the greenback by 0.75 percent to 0.9643.

Earnings Reported Yesterday

Key companies that reported earnings Friday include:

• Genesco GCO reported first quarter EPS of $0.94 vs. $0.87 expected on revenue of $591.4 million vs. $605.71 million expected.

Pre-Market Movers

Stocks moving in the pre-market included:

• WPX Energy WPX shares declined 1.3 percent pre-market as Natural Gas prices eased in early trading.


• Boeing BA shares rose 0.59 percent pre-market as the company announced over the weekend that it has begun final assembly on the first 787-9 Dreamliner, the latest version of the plane, ahead of schedule.


• Carnival Corporation CCL shares declined 0.82 percent pre-market after a slew of downgrades last week and on fears over the safety of the cruise industry as a whole following a series of disasters.

Earnings

Notable companies expected to report earnings Monday include:

• ABM Industries ABM is expected to report second quarter EPS of $0.33 vs. $0.30 a year ago.


• Cracker BarrelCBRL is expected to report third quarter EPS of $0.94 vs. $0.86 a year ago.


• SAIC SAI is expected to report first quarter EPS of $0.26 vs. $0.35 a year ago.


• Verint Systems VRNT is expected to report first quarter EPS of $0.52 vs. $0.53 a year ago.
• Click here to view Benzinga's earnings expectations for the week of June 3!

Economics

On the economics calendar Monday, the Markit Manufacturing PMI is due out as well as the ISM Manufacturing Index and Construction Spending data. In addition, San Francisco Fed President John Williams is set to speak and the Treasury is set to hold its weekly 3- and 6-month bill auctions. Overnight, the Reserve Bank of Australia (RBA)'s rate decision is due out and the British Construction PMI is expected.

Good luck and good trading.

Click here to view Benzinga's earning and economic outlook for the week of June 3!