Benzinga Market Primer: Thursday, August 1: Futures Up On Europe and Asia
Futures Higher on Economic Data
U.S. equity futures are significantly up in early pre-market trade based on strong Asian and European PMI data. In addition, the Bank of England and European Central Bank are expected to reaffirm a policy of easing Thursday morning.
- Eurozone manufacturing is growing for the first time in two years. PMI came in at 50.3 versus the previous 48.8.
- China's HSBC manufacturing PMI is down from 48.2 to 47.7. However, the NBS manufacturing PMI rose from 50.1 to 50.3, beating expectations.
- S&P futures are up 13.3 points to 1693.8
- The EUR/USD is down 0.0067 to 1.3235
- Crude Oil futures are up $1.22 to $106.25.
- Gold futures are up $10.10 this morning to $1323.10.
Asian markets surged overnight on strong economic data. The Japanese Nikkei 225 Index gained 2.47 percent and the Topix Index rose 2.80 percent. In Hong Kong, the Hang Seng Index added 0.94 percent while the Shanghai Composite Index rose 1.77 percent in China. Also, the Korean Kospi added 0.35 percent.
European shares also gained value on strong economic data and anticipation for central banks to reaffirm easing. The Spanish Ibex Index rose 0.49 percent and the Italian FTSE MIB Index declined 1.09 percent. Similarily, the German DAX rose 1.08 percent and the French CAC 40 Index rose 0.38 percent while U.K. shares gained 0.38 percent.
Commodities were mostly higher overnight with oil seeing a sizable increase. WTI Crude futures gained 1.15 percent to $106.24 per barrel and Brent Crude futures added 0.96 percent to $108.73 per barrel. Copper futures rose 1.19 percent to $315.55 per pound. Gold was higher and silver futures climbed 0.07 percent to $19.70 per ounce.
Currency markets were on the move overnight as the euro and pound strengthened ahead of announcements from the European Central bank and Bank of England. The EUR/USD was lower at 1.3241 and the dollar rose against the yen to 98.8000. The EUR/JPY bundle rose to 130.8300.
Key companies that reported earnings Wednesday include:
- Honda Motor Co (NYSE: HMC) reported second quarter EPS of $0.69 on revenue of $28.75 billion vs. $29.49 billion.
- Comcast (NASDAQ: CMCSA) reported second quarter EPS of $0.65 vs. $0.63 expected on revenue of $16.27 billion vs. $16.01 billion.
- Anheuser-Busch Inbev (NYSE: BUD) reported second quarter EPS of $0.93 vs. $1.03 expected on revenue of $10.60 billion vs. $16.20 billion.
- Allstate Corporation (NYSE: ALL) reported second quarter EPS of $1.12 vs. $0.98 expected on revenue of $8.79 billion vs. $7.00 billion.
- Mastercard Incorporated (NYSE: MA) reported second quarter EPS of $6.96 vs. $6.30 expected on revenue of $2.10 billion vs. $2.00 billion.
Stocks moving in the pre-market included:
- Garmin (NASDAQ: GRMN) is up 4.05 percent to $38.77 after the company reported strong earnings.
- MasterCard (NYSE: MA) is also up on strong earnings to $625.
- Amgen (NASDAQ: AMGN) is down this morning after sliding 2.62 percent yesterday on bad earnings. Shares are down 2.83 percent in the pre-market to $108.05
Notable companies expected to report earnings Thursday include:
- ConocoPhillips (NYSE: COP) is expected to report second quarter EPS of $1.29 vs. $1.22 a year ago on revenue of $12.75 billion vs. $13.99 billion a year ago.
- DIRECTV (NASDAQ: DTV) is expected to report second quarter EPS of $1.33 vs. $1.09 a year ago on revenue of $7.76 billion vs. $7.22 billion a year ago.
- Enbridge (NYSE: ENB) is expected to report second quarter EPS of $0.39 vs. $0.36 a year ago on revenue of $5.73 billion vs. $5.72 billion a year ago.
- Kraft Foods (NASDAQ: KRFT) is expected to report second quarter EPS of $0.66 on revenue of $4.81 billion.
- Barrick Gold (NYSE: ABX) is expected to report second quarter EPS of $0.59 vs. $0.78 a year ago on revenue of $3.10 billion vs. $3.28 billion a year ago.
- LinkedIn (NYSE: LNKD) is expected to report second quarter EPS of $0.31 vs. $0.16 a year ago on revenue of $354.04 million vs. $228.21 million a year ago.
- Marathon Petroleum (NYSE: MRO) is expected to report second quarter EPS of $1.93 vs. $2.53 a year ago
- Exxon Mobil (NYSE: XOM) is expected to report second quarter EPS of $1.90 vs. $1.80 a year ago.
Thursday is PMI day. Overnight, the manufacturing PMI will came out from China, early in the morning the eurozone and many European countries reported their figures, and at 8:00 am the United States number will be released. US ISM manufacturing data will also come out at 10:00 am. At 8:30 this morning, initial and continuing jobless claims will be published. The natural gas figure at 10:30 am will be interesting to watch because suspicious trade patterns indicate the figure is regularly leaked. The last big figure of the day are total vehicle sales after hours.
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 here.
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