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.

U.S. equity futures .

Top News

In other news around the markets:

• 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

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 Markets

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

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.

Currencies

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.

Earnings Reported Yesterday

Key companies that reported earnings Wednesday include:

• Honda Motor Co HMC reported second quarter EPS of $0.69 on revenue of $28.75 billion vs. $29.49 billion.


• Comcast 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 BUD reported second quarter EPS of $0.93 vs. $1.03 expected on revenue of $10.60 billion vs. $16.20 billion.


• Allstate Corporation ALL reported second quarter EPS of $1.12 vs. $0.98 expected on revenue of $8.79 billion vs. $7.00 billion.

Mastercard Incorporated MA reported second quarter EPS of $6.96 vs. $6.30 expected on revenue of $2.10 billion vs. $2.00 billion.

Pre-Market Movers

Stocks moving in the pre-market included:

• GarminGRMN is up 4.05 percent to $38.77 after the company reported strong earnings.


• MasterCard MA is also up on strong earnings to $625.


• Amgen AMGN is down this morning after sliding 2.62 percent yesterday on bad earnings. Shares are down 2.83 percent in the premarket to $108.05

Earnings

Notable companies expected to report earnings Thursday include:

• ConocoPhillips 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 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 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 KRFT is expected to report second quarter EPS of $0.66 on revenue of $4.81 billion.


• Barrick Gold 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 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 MRO is expected to report second quarter EPS of $1.93 vs. $2.53 a year ago

Exxon Mobile XOM is expected to report second quarter EPS of $1.90 vs. $1.80 a year ago.

Economics

Wednesday 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 afterhours.

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.