Benzinga Market Primer: Wednesday, February 13
Futures Flat Ahead of G20
U.S. equity futures were relatively unchanged overnight ahead of the much anticipated G20 Summit. Also, investors eye earnings from many U.S. companies today.
In other news around the markets:
- Dell (NASDAQ: DELL) investors look set to try to block the proposed management buyout of the company as they look for a better deal.
- Comcast (NASDAQ: CMCSA) has announced that it is set to purchase the remainder of the NBCUniversal joint venture from General Electric (NYSE: GE) for $16.7 billion.
- Eurozone industrial production rose 0.7 percent in December from November, well better than economist forecasts of a 0.2 percent rise and much better than November's reading of -0.7 percent.
- S&P 500 futures were flat at 1,516.20.
- The EUR/USD was higher at 1.3469.
- Spanish 10-year government bond yields fell to 5.27 percent.
- Italian 10-year government bond yields fell to 4.46 percent.
- Gold fell 0.15 percent to $1,646.90 per ounce.
Asian shares were mixed overnight with Japanese shares falling following the G7 statement confusion while other regional equities rallied. The Japanese Nikkei Index fell 1.04 percent. Also, the Korean kospi rose 1.56 percent and Australian shares rose 0.9 percent.
European shares were mixed overnight with moves remaining tepid in both directions. The Spanish Ibex Index rose 0.12 percent and the Italian FTSE MIB Index fell 0.16 percent. Meanwhile, the German DAX rose rose 0.05 percent and the French CAC fell 0.27 percent while U.K. shares fell 0.41 percent.
Commodities were were mixed overnight as energy futures rose and gold and silver fell. WTI Crude futures rose 0.14 percent to $97.64 per barrel and Brent Crude futures were flat at $118.66 per barrel. Copper futures rose 0.27 percent to $375.40 per pound. Gold was lower and silver futures declined 0.13 percent to $30.98 per ounce.
Currency markets showed euro strength and sterling weakness overnight as Bank of England Governor Mervyn King's press conference following the release of the BoE Inflation Report started. The EUR/USD was was higher at 1.3469 and the dollar fell against the yen to 93.38 while the sterling fell 0.42 percent to 1.5597. Overall, the Dollar Index fell 0.2 percent on weakness against the euro, the yen, and the Swedish krone. Notably, the Australian dollar was stronger and the EUR/GBP cross rose 0.63 percent.
Stocks moving in the pre-market included:
- Comcast (NASDAQ: CMCSA) shares rose 7.13 percent pre-market following its deal with GE.
- Cliffs Natural Resources (NYSE: CLF) shares fell 10.13 percent pre-market after the company reported weaker than expected earnings and a secondary share offering.
- Yum! Brands (NYSE: YUM) shares rose 0.53 percent pre-market as the company announced that its Taco Bell business is to make a serious announcement today, Wednesday.
- WellPoint (NYSE: WLP) shares fell 1.15 percent pre-market as the company appointed a new CEO.
Notable companies expected to report earnings Wednesday include:
- Cisco (NASDAQ: CSCO) is expected to report second quarter EPS of $0.48 vs. $0.47 a year ago.
- Comcast (NASDAQ: CMCSA) is expected to report fourth quarter EPS of $0.53 vs. $0.47 a year ago.
- Deere and Co. (NYSE: DE) is expected to report first quarter EPS of $1.40 vs. $1.30 a year ago.
- Metlife (NYSE: MET) is expected to report fourth quarter EPS of $1.18 vs. $1.31 a year ago.
- NetApp (NASDAQ: NTAP) is expected to report third quarter EPS of $0.56 vs. $0.58 a year ago.
- Zillow (NASDAQ: Z) is expected to report fourth quarter EPS of $0.00 vs. $0.03 a year ago.
On the economics calendar Wednesday, MBA Purchase Applications and retail sales data are expected as well as import and export prices and business inventories. In addition, the Fed's James Bullard is set to speak and the Treasury will issue 10-year notes. Overnight, the Bank of Japan interest rate decision is expected followed by a press conference and Eurozone GDP data is expected alongside the ECB monthly report.
Good luck and good trading.
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