Benzinga Market Primer, Friday June 14

Futures Rise On Global Gains

U.S. equity futures rose slightly in early pre-market trade following gains around the world. The Japanese Nikkei Index rose overnight despite the yen remaining strong in volatile trading.

Top News

In other news around the markets:

• U.S. equity futures rallied into the close Thursday and closed near session highs after the Wall Street Journal's Fed watcher John Hilsenrath published a piece saying that the Fed is unlikely to raise rates anytime soon, even if they taper. He also warned that tapering still seems like it will begin in the fourth quarter.


• European total employment fell 0.5 percent in May, worse than the expected 0.2 percent drop. Employment had declined 0.3 percent in April.


• Eurozone inflation continued to drag along at low levels in May as the CPI rose 0.1 percent in the month, in line with expectations. The CPI rose 1.2 percent from a year ago, also in line with expectations, although well below the unofficial target of 2 percent inflation.


• S&P 500 futures 1 point to 1,637.75.


• The EUR/USD was lower at 1.3324.


• Spanish 10-year government bond yields declined 8 basis points to 4.54 percent.


• Italian 10-year government bond yields also declined 8 basis points to 4.27 percent.


• Gold rose 0.3 percent to $1,382.00.

Asian Markets

Asian shares were mostly higher overnight, led by gains in Japan on the back of the rally in U.S. stocks. The Japanese Nikkei 225 Index rose 1.94 percent and the Topix Index gained 1.18 percent. In Hong Kong, the Hang Seng Index rose 0.39 percent while the Shanghai Composite Index gained 0.65 percent. Also, the Korean Kospi rose 0.35 percent and Australian shares rose 2.04 percent.

European Markets

European shares were mostly higher in early trade following stronger global markets. The Spanish Ibex Index rose 0.55 percent while the Italian FTSE MIB Index slipped 0.07 percent. Meanwhile, the German DAX rose 0.76 percent and the French CAC 40 Index 0.47 percent while U.K. shares gained 0.58 percent.

Commodities

Commodities were mostly higher overnight as the dollar weakened except for against the yen. WTI Crude futures rose 0.26 percent to $96.94 per barrel and Brent Crude futures gained 0.73 percent to $104.25 per barrel. Copper futures ticked higher overnight by 0.53 percent to $320.20 per pound. Gold was higher and silver futures rose 0.5 percent to $21.69 per ounce.

Currencies

Currency markets were on the move overnight as yen and dollar strength continued to be the common themes. The EUR/USD was lower at 1.3324 and the dollar fell against the yen by 0.44 percent to 94.95. Overall, the Dollar Index rose 0.17 percent on strength against the euro, the pound, and the Swiss franc.

Earnings Reported Yesterday

Key companies that reported earnings Thursday include:

• Casey's General Stores CASY reported fourth quarter EPS of $0.60 vs. $0.62 expected on revenue of $1.81 billion vs. $1.83 billion expected.


• Restoration Hardware RH reported first quarter EPS of $0.06 vs. $0.04 on revenue of $301.3 million vs. $299.13 million. The company also issued strong second quarter guidance above analyst estimates and raised full year guidance above the street's forecasts.


• Smith and Wesson SWHC reported preliminary fourth quarter EPS of $0.44 vs. $0.40 expected on revenue of $179 million vs. $170.6 million expected. The company also announced a debt swap to exchange existing debt for new debt with lower coupon rates which would amount to a $25 million cash inflow for the company as well as a new $100 million share buyback.
• Rentrak RENT reported a fourth quarter loss of $0.17 per share vs. an expected lsos of $0.03 per share on revenue of $28.52 million vs. $27.58 million expected.

Pre-Market Movers

Stocks moving in the pre-market included:

• Smith and Wesson SWHC shares popped 4.09 percent after-hours following the earnings release and the announcement of the buyback of 17 percent of the company's market cap.


• Casey's General Stores CASY shares declined 2.07 percent pre-market following the earnings miss.


• Echo Therapeutics ECTE shares declined 3.46 percent pre-market as the company priced a 4.025 million share offering at $2.70 per share.

Earnings

Notable companies expected to report earnings Friday include:

• NGL Energy Partners NGL is expected to report fourth quarter EPS of $1.03 vs. $0.73 a year ago.


• Smithfield Foods SFD is expected to report fourth quarter EPS of $0.43 vs. $0.43 a year ago.

Economics

On the economics calendar Friday, the U.S. current account and PPI inflation data are due out followed by TIC flows, capacity utilization, industrial production, and the Reuters/University of Michigan Consumer Sentiment Index.

Good luck and good trading.

Tune into Benzinga's PreMarket Info show with Dennis Dick and Joel Elconin here.

For a recap of yesterday's market action, read Benzinga's daily market wrap here.