Futures higher on economic data
Strong Asian and European manufacturing reports boost global stocks, and US markets seem set to follow.
By Luke Jacobi
U.S. equity futures are significantly up in early premarket trade on strong Asian and European PMI data. In addition, the Bank of England and European Central Bank are expected to reaffirm a policy of easing Thursday morning.
Eurozone manufacturing is growing for the first time in two years. PMI came in at 50.3 versus the previous 48.8.
China's HSBC manufacturing PMI is down from 48.2 to 47.7. However, the National Bureau of Statistics manufacturing PMI rose from 50.1 to 50.3, beating expectations.
S&P futures are up 13.3 points to 1693.8
The EUR/USD is down 0.0067 to 1.3235
Crude Oil futures are up $1.22 to $106.25.
Gold futures are up $10.10 this morning to $1323.10.
Asian markets surged overnight on strong economic data. The Japanese Nikkei 225 Index gained 2.47% and the Topix Index rose 2.80%. In Hong Kong, the Hang Seng Index added 0.94% while the Shanghai Composite Index rose 1.77% in China. Also, the Korean Kospi added 0.35%.
European shares also gained on strong economic data and anticipation for central banks to reaffirm easing. The Spanish Ibex Index rose 0.49% and the Italian FTSE MIB Index declined 1.09%. Similarly, the German DAX rose 1.08% and the French CAC 40 Index rose 0.38% while U.K. shares gained 0.38%.
Commodities were mostly higher overnight with oil seeing a sizable increase. WTI crude futures gained 1.15% to $106.24 per barrel and Brent crude futures added 0.96% to $108.73 per barrel. Copper futures rose 1.19% to $315.55 per pound. Gold was higher and silver futures climbed 0.07% to $19.70 per ounce.
Currency markets were on the move overnight as the euro and pound strengthened ahead of announcements from the European Central bank and Bank of England. The EUR/USD was lower at 1.3241 and the dollar rose against the yen to 98.8000. The EUR/JPY bundle rose to 130.8300.
Earnings reported Wednesday
Key companies that reported earnings Wednesday include:
Honda Motor (HMC) reported second quarter earnings per share of $0.69 on revenue of $28.75 billion vs. $29.49 billion.
Comcast (CMCSA) reported second quarter earnings per share of $0.65 vs. $0.63 expected on revenue of $16.27 billion vs. $16.01 billion.
Anheuser-Busch Inbev (BUD) reported second quarter earnings per share of $0.93 vs. $1.03 expected on revenue of $10.60 billion vs. $16.20 billion.
Allstate (ALL) reported second quarter earnings per share of $1.12 vs. $0.98 expected on revenue of $8.79 billion vs. $7.00 billion.
MasterCard (MA) reported second quarter earnings per share of $6.96 vs. $6.30 expected on revenue of $2.10 billion vs. $2.00 billion.
Stocks moving in the premarket included:
Garmin (GRMN) was up 4.05% to $38.77 after the company reported strong earnings.
MasterCard (MA) was also up on strong earnings to $625.
Amgen (AMGN) was down this morning after sliding 2.62% Wednesday on bad earnings. Shares are down 2.83% in the premarket to $108.05
Notable companies expected to report earnings Thursday include:
ConocoPhillips (COP) is expected to report second quarter earnings per share of $1.29 vs. $1.22 a year ago on revenue of $12.75 billion vs. $13.99 billion a year ago.
DirecTV (DTV) is expected to report second quarter earnings per share of $1.33 vs. $1.09 a year ago on revenue of $7.76 billion vs. $7.22 billion a year ago.
Enbridge (ENB) is expected to report second quarter earnings per share of $0.39 vs. $0.36 a year ago on revenue of $5.73 billion vs. $5.72 billion a year ago.
Kraft Foods (KRFT) is expected to report second quarter earnings per share of $0.66 on revenue of $4.81 billion.
Barrick Gold (ABX) is expected to report second quarter earnings per share of $0.59 vs. $0.78 a year ago on revenue of $3.10 billion vs. $3.28 billion a year ago.
LinkedIn (LNKD) is expected to report second quarter earnings per share of $0.31 vs. $0.16 a year ago on revenue of $354.04 million vs. $228.21 million a year ago.
marathon Petroleum (MRO) is expected to report second quarter earnings per share of $1.93 vs. $2.53 a year ago
Exxon Mobil (XOM) is expected to report second quarter earnings per share of $1.90 vs. $1.80 a year ago.
Thursday is PMI day. Overnight, China's manufacturing PMI came out, and early in the morning, it was the eurozone's and many European countries. At 8:00 a.m. ET, the U.S. figure will be released. U.S. ISM manufacturing data will also come out at 10:00 a.m. ET. At 8:30 a.m. ET, initial and continuing jobless claims are due out. The natural gas figure will be released at 10:30 a.m. ET, and it will be interesting to watch because suspicious trade patterns indicate the figure is regularly leaked. The last big figure of the day is total vehicle sales after hours.
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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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