Market Overview

Benzinga Market Primer: Wednesday, July 3: Half Day of Trading

Benzinga Market Primer: Wednesday, July 3: Half Day of Trading

Futures Drop Into Shortened Trading Day On Weak Services PMIs, Geopolitical Fears

U.S. equity futures declined in early pre-market trade ahead of the shortened trading day on weaker than expected services PMIs around the globe. Weak data from China to the eurozone weighed on sentiment overnight.

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In other news around the markets:

  • The official China Non-Manufacturing PMI slipped to 53.9 in June from 54.3 in May, a four-month low, while the HSBC China Non-Manufacturing PMI rose to 51.3 from 51.2 but the weakness in the official number weighed on markets.
  • In the eurozone, the Eurozone Non-Manufacturing PMI rose to 48.3 from 47.2 in May but missed expectations of a reading of 48.6, which was the flash reading earlier this month. Strength in Spain once again was offset by weakness in Germany and Italy.
  • England's Non-Manufacturing PMI rose sharply in June, however, rising to 54.9 from 52.9 on expectations of a reading of 53.0, rising to a 16-month high.
  • Fears over political turmoil around the world also weighed on futures as the Government of Egyptian President Muhammed Morsi is falling apart while Prime Minister Pedro Passos Coelho's government in Portugal is also teetering as two key ministers quit, jeopardizing the coalition government.
  • S&P 500 futures fell 10.2 points to 1,597.00.
  • The EUR/USD was lower at 1.2952.
  • Spanish 10-year government bond yields rose 11 basis points to 4.73 percent on the Portugal news.
  • Italian 10-year government bond yields rose 9 basis points to 4.53 percent.
  • Gold rose 0.18 percent to $1,245.70 per ounce.

Asian Markets

Asian shares were mostly lower on the global geopolitical news and on the weak PMI data. The Japanese Nikkei 225 Index declined 0.31 percent and the Topix Index rose 0.17 percent. In Hong Kong, the hang Seng Index fell 2.48 percent while in China, the Shanghai Composite Index declined 0.61 percent. Also, the Korean Kospi fell 1.64 percent and Australian shares dropped 1.86 percent.

European Markets

European shares were also sharply lower overnight on similar fears. The Spanish Ibex Index declined 2.48 percent and the Italian FTSE MIB Index fell 1.6 percent. Meanwhile, the German DAX dropped 1.38 percent and the French CAC 40 Index fell 1.31 percent while U.K. shares declined 1.38 percent.


Commodities were higher overnight as WTI Crude futures rose through $100 per barrel. WTI Crude futures rose 1.39 percent to $100.98 per barrel and Brent Crude futures gained 0.58 percent to $104.60 per barrel. Copper futures gained 0.48 percent to $315.80 per pound. Gold was higher and silver futures gained 1.04 percent to $19.51 per ounce.


Currency markets were on the move overnight as the yen reversed most of Tuesday's losses in a clear risk-off environment. The EUR/USD was lower at 1.2952 and the dollar dropped 0.82 percent against the yen to 99.80. Overall, the Dollar Index declined 0.06 percent on weakness against the yen, the pound, the Canadian dollar, and the Swiss franc.

Earnings Reported Yesterday

Key companies that reported earnings Tuesday include:

  • Constellation Brands (NYSE: STZ) reported first quarter EPS of $0.38 vs. $0.40 expected on revenue of $673.0 million vs. $674.25 million expected.
  • Acuity Brands (NYSE: AYI) reported third quarter EPS of $0.97 vs. $0.88 expected on revenue of $541.5 million vs. $518.76 million expected.

Pre-Market Movers

Stocks moving in the pre-market included:

  • Credit Suisse (NYSE: CS) shares declined 2.57 percent pre-market after S&P downgraded the bank to A- from A.
  • Deutsche Bank(NYSE: DB) shares declined 2.99 percent pre-market as S&P also cut its rating to A from A+ Tuesday after the close.
  • Barclays (NYSE: BCS) shares dropped 2.41 percent pre-market as the company too was cut by S&P to A from A+.


Notable companies expected to report earnings Wednesday include:

  • International Speedway (NASDAQ: ISCA) is expected to report second quarter EPS of $0.50 vs. $0.52 a year ago on revenue of $182.3 million vs. $179.6 million a year ago.


On the economics calendar Wednesday, MBA Purchase Applications are due out followed by the Challenger Job Cut Report and the ADP Employment Report. Also, international trade data, jobless claims, the ISM Non-Manufacturing Index, and the EIA Petroleum and Nat Gas Reports are due out. Overnight, watch for the Bank of England and European Central Bank rate decisions.

Good luck and good trading.

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

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

Latest Ratings for STZ

Jul 2019MaintainsNeutral
Jul 2019MaintainsEqual-Weight
Jul 2019MaintainsHold

View More Analyst Ratings for STZ
View the Latest Analyst Ratings

Posted-In: Earnings News Bonds Guidance Dividends Emerging Markets Downgrades Eurozone Best of Benzinga


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