Futures higher after Asia turnaround
Investors look to earnings and to a slew of economic reports due out this week.
U.S. equity futures rose slightly in early premarket trade as Asian shares reversed losses from Monday and rose overnight. Investors now look to earnings and the flood of economic data that begins Tuesday and continues through the rest of the week for direction.
In other news, J.P. Morgan Chase (JPM) was charged by regulators of manipulating the power market and costing citizens over $70 million in additional power costs.
Overnight, the People's Bank of China injected funds into the short-term lending market for the first time since February, finally acting to ease credit conditions.
Reserve Bank of Australia Governor Glenn Stevens spoke overnight and hinted at more rate cuts to come at the August 6 meeting of the central bank.
S&P 500 futures rose 0.7 points to 1,683.20.
The EUR/USD was higher at 1.3273.
Spanish 10-year government bond yields were flat at 4.68%.
Italian 10-year government bond yields were flat at 4.46%.
Gold fell 0.41% to $1,324.10 per ounce.
Asian shares were higher overnight on some positive economic news and also on a reversal of Monday's losses. The Japanese Nikkei 225 Index gained 1.53% and the Topix Index rose 1.78%. In Hong Kong, the Hang Seng Index rose 0.48% and the Shanghai Composite Index rose 0.7% in China. Also, the Korean Kospi rose 0.9% and Australian shares rose 0.02%.
European shares were mixed but roughly unchanged in early trade on little news. The Spanish Ibex Index fell 0.12% and the Italian FTSE MIB Index rose 0.1%. Meanwhile, the German DAX rose 0.08% while the French CAC 40 Index fell 0.03% and U.K. shares rose 0.14%.
Commodities were lower overnight as the dollar gained back some losses. WTI crude futures fell 0.68% to $103.84 per barrel and Brent crude futures declined 0.2% to $107.24 per barrel. Copper futures fell 0.84% to $308.15 per pound. Gold was lower and silver futures declined 1.33% to $19.60 per ounce.
Currency markets were on the move as the Aussie dollar plunged on comments from Governor Stevens. The EUR/USD was higher at 1.3273 and the dollar rose against the yen to 98.03. Overall, the Dollar Index rose 0.1% on strength against the pound, the Canadian dollar, and the yen. Notably, the AUD/USD declined 1.5% to 0.9068 and the AUD/JPY fell 1.41% to 88.9070.
Earnings reported Monday
Key companies that reported earnings Monday include:
Herbalife (HLF) reported second quarter earnings per share of $1.41 vs. $1.18 expected on revenue of $1.22 billion vs. $1.16 billion expected.
Wynn Resorts (WYNN) reported second quarter earnings per share of $1.51 vs. $1.57 expected on revenue of $1.33 billion vs. $1.34 billion expected.
U.S. Steel (X) reported a second quarter loss of $0.54 per share vs. an expected loss of $0.79 per share on revenue of $4.43 billion vs. $4.61 billion expected.
Roper Industries (ROP) reported second quarter earnings per share of $1.16 vs. $1.30 expected on revenue of $784 million vs. $806.67 million expected.
Stocks moving in the premarket included:
Mosaic (MOS) shares fell 6.28% as the world's largest potash produced, OAO Uralkali, forecast global prices will fall 25%.
Potash (POT) shares fell 9.23% premarket on the same news.
Herbalife (HLF) shares rose 5.42% premarket after reporting better than expected earnings and raising full year guidance.
Notable companies expected to report earnings Tuesday include:
BP (BP) is expected to report second quarter earnings per share of $1.13 vs. $1.16 a year ago on revenue of $62.35 billion vs. $99.34 billion a year ago.
Pfizer (PFE) is expected to report second quarter earnings per share of $0.55 vs. $0.62 a year ago on revenue of $13.03 billion vs. $15.06 billion a year ago.
Aetna (AET) is expected to report second quarter earnings per share of $1.40 vs. $1.31 a year ago on revenue of $11.9 billion vs. $8.83 billion a year ago.
Merck (MRK) is expected to report second quarter earnings per share of $0.83 vs. $1.05 a year ago on revenue of $11.22 billion vs. $12.31 billion a year ago.
Dollar General (DG) is expected to report second quarter earnings per share of $0.74 vs. $0.69 a year ago on revenue of $4.36 billion vs. $3.95 billion a year ago.
On the economics calendar Tuesday, the weekly Redbook is due out followed by the S&P Case-Shiller home price index and the CB consumer confidence report. The Treasury is also expected to auction four-week bills. Overnight, the German retail sales and unemployment reports are due out.
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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