Futures higher after Apple earnings

US markets are set to tick up at the open after the tech giant's positive results and strong eurozone PMI data.

By Benzinga Jul 24, 2013 8:24AM

zurbar age fotostockBy Matthew Kanterman


U.S. equity futures rose in the premarket after Apple (AAPL) reported better than expected third quarter results. Also, CFO Peter Oppenheimer hinted at many new products later this year when he said on the conference call that Apple will have a "very busy fall."


In other news, the Chinese flash HSBC manufacturing PMI fell to 47.7 in the first half of July compared to the June reading of 48.2 on expectations of a flat reading. However, this index focuses on smaller companies so it is no surprise that the Chinese credit crunch is affecting operations at these companies.


Eurozone PMIs strongly beat expectations in both the manufacturing and services sectors. The flash reading of the manufacturing PMI rose to 50.1 for the first half of July from 48.8 in June, beating expectations of a reading of 49.1, while the services PMI rose to 49.6 from 48.3 on expectations of a reading of 48.7.


Japan's trade deficit in June unexpectedly widened to 180.8 billion yen vs. the expected deficit of 161 billion although it improved from May's deficit of 994 billion yen.

  • S&P 500 futures rose 4.4 points to 1,690.20.

  • The EUR/USD was higher at 1.3239.

  • Spanish 10-year government bond yields rose 1 basis point to 4.69%.

  • Italian 10-year government bond yields were flat at 4.37%.

  • Gold rose 0.49% to $1,341.70 per ounce.

Asian markets

Asian shares were mixed overnight as markets reacted to lots of regional economic data. The Japanese Nikkei 225 Index declined 0.32% and the Topix Index fell 0.23%. In Hong Kong, the Hang Seng Index rose 0.24% while the Shanghai Composite Index fell 0.52% in China. Also, the Korean Kospi rose 0.42% and Australian shares gained 0.36%.


European markets

European shares were higher in early trade on the back of the stronger than expected PMI data. The Spanish Ibex Index rose 1.11% and the Italian FTSE MIB Index gained 0.73%. Meanwhile, the German DAX rose 0.61% and the French CAC 40 Index gained 0.9% while U.K. shares rose 0.61%.


Commodities

Commodities were mixed overnight as gold futures rose while the spot price fell. WTI crude futures gained 0.02% to $107.25 per barrel and Brent crude futures declined 0.42% to $107.96 per barrel. Copper futures rose 0.41% to $321.10 per pound. Gold was higher and silver futures gained 0.15% to $20.29 per ounce.


Currencies

Currency markets were on the move overnight as the yen and the Aussie dollar weakened following economic data. The EUR/USD was higher at 1.3239 and the dollar rose against the yen to 100.05. Overall, the Dollar Index rose 0.11% on strength against the yen, the Swiss franc, the Canadian dollar, and the pound. Also, the Australian dollar was sharply weaker, declining 0.85% against the U.S. dollar, 0.22% against the yen, and 0.96% against the euro.


Earnings reported Tuesday

Key companies that reported earnings Tuesday include:

  • Apple (AAPL) reported third quarter earnings per share of $7.47 vs. $7.31 expected on revenue of $35.3 billion vs. $35.09 billion expected.

  • Norfolk Southern (NSC) reported second quarter earnings per share of $1.46 vs. $1.49 expected on revenue of $2.8 billion vs. $2.85 billion expected.

  • Broadcom (BRCM) reported second quarter earnings per share of $0.70 vs. $0.68 expected on revenue of $2.09 billion vs. $2.1 billion expected.

  • FMC Technologies (FTI) reported second quarter earnings per share of $0.44 vs. $0.47 expected on revenue of $1.71 billion vs. $1.64 billion expected.

  • VMware (VMW) reported second quarter earnings per share of $0.79 vs. $0.77 expected on revenue of $1.24 billion vs. $1.23 billion expected.

  • Juniper Networks (JNPR) reported second quarter earnings per share of $0.29 vs. $0.25 expected on revenue of $1.15 billion vs. $1.09 billion expected.

Premarket movers

Stocks moving in the premarket included:

  • Apple (AAPL) shares rose 3.58% premarket after the company beat analyst estimates.

  • VMware (VMW) shares rose 12.02% premarket after it also reported a better than expected quarter.

  • U.S. Steel (X) shares declined 0.21% premarket on China fears following the weak Chinese PMI figure.

  • Transition Therapeutics (TTHI) shares rose 22.42% premarket after the company announced a new licensing agreement with Eli Lilly (LLY) after the close yesterday.

Earnings

Notable companies expected to report earnings Wednesday include:

  • Baidu (BIDU) is expected to report second quarter earnings per share of $1.21 vs. $1.24 a year ago.

  • Boeing (BA) is expected to report second quarter earnings per share of $1.57 vs. $1.27 a year ago.

  • Caterpillar (CAT) is expected to report second quarter earnings per share of $1.70 vs. $2.54 a year ago.

  • Delta Airlines (DAL) is expected to report second quarter earnings per share of $0.94 vs. $0.69 a year ago.

  • EMC (EMC) is expected to report second quarter earnings per share of $0.42 vs. $0.39 a year ago.

  • Facebook (FB) is expected to report second quarter earnings per share of $0.14 vs. $0.12 a year ago.

  • Ford (F) is expected to report second quarter earnings per share of $0.37 vs. $0.30 a year ago.

  • PepsiCo (PEP) is expected to report second quarter earnings per share of $1.19 vs. $1.12 a year ago.

  • Qualcomm (QCOM) is expected to report third quarter earnings per share of $1.03 vs. $0.85 a year ago.

  • Visa (V) is expected to report third quarter earnings per share of $1.79 vs. $1.56 a year ago.

Economics

On the economics calendar Wednesday, MBA purchase applications and the flash PMI manufacturing index is due out as well as new home sales and a five-year note auction. Overnight, the German IFO Business Climate Index and the British GDP report are due out.


More from Benzinga

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

133
133 rated 1
286
286 rated 2
441
441 rated 3
737
737 rated 4
614
614 rated 5
606
606 rated 6
621
621 rated 7
441
441 rated 8
317
317 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
VZVERIZON COMMUNICATIONS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.