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.
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 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 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 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.
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.
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.
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.
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.
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