Futures lower after weak Japan GDP

US markets are set to continue recent declines as Japanese economic growth slows.

By Benzinga Aug 12, 2013 8:30AM

zurbar age fotostockBy Matthew Kanterman


U.S. equity futures were lower in early premarket trade following a much weaker than expected GDP report out of Japan. With little data out Monday in the U.S. and thin trading volumes due to the time of the year, volatile trading could be on tap.


Japan's economy grew 2.6% in the second quarter from a year ago, much worse than the forecast of 3.6% and below the downwardly revised prior reading of 3.8%. However, inflation was reported as higher than expected in the release.

The Bundesbank issued a report over the weekend citing that Greece may need a third bailout after the German elections in September.


In order to prop up the Chinese economy, the Agricultural Bank of China made a huge loan to Shanghai, roughly 12.5% of the city's GDP, to help fund the building of a Disneyland.

  • S&P 500 futures fell 10.7 points to 1,675.50.

  • The EUR/USD was lower at 1.33.

  • Spanish 10-year government bond yields were flat at 4.49%.

  • Italian 10-year government bond yields were flat at 4.19%.

  • Gold rose 1.07% to $1,326.30 per ounce.

Asian markets

Asian shares were mixed overnight as Chinese shares rallied on the stealth stimulus of the large loan, while Japanese shares fell on the disappointing GDP report. The Japanese Nikkei 225 Index fell 0.7% and the Topix Index dropped 0.55%. In Hong Kong, the Hang Seng Index gained 2.13% and the Shanghai Composite Index rose 2.39% in China. Also, the Korean Kospi gained 0.22% and Australian shares rose 1.06%.


European markets

European shares were lower as the euro dropped on fears that a new fight was set over a third Greek bailout later this year. The Spanish Ibex Index fell 0.35% and the Italian FTSE MIB Index dropped 0.7%. Meanwhile, the German DAX fell 1.12% and the French CAC 40 Index declined 0.67% while U.K. shares fell 0.53%.


Commodities

Commodities were mixed as precious metals gained on hopes that the Fed will put off tapering the face of weakening global growth and slowing inflation. WTI crude futures fell 0.08% to $105.88 per barrel and Brent crude futures fell 0.51% to $107.67 per barrel. Copper futures were roughly flat while gold was higher and silver futures gained 2.54% to $20.93 per ounce.


Currencies

Currency markets were on the move overnight as the dollar gained. The EUR/USD was lower at 1.33 and the dollar rose against the yen to 96.71. Overall, the Dollar Index gained 0.32% on strength against the yen, the Swiss franc, the euro, the Canadian dollar, and the British pound.


Earnings reported Friday

Key companies that reported earnings Friday include:

  • Brookfield Asset Management (BAM) reported second quarter earnings per share of $0.68 vs. $0.40 expected on revenue of $5.17 billion vs. $4.66 billion expected.

  • James River Coal Company (JRCC) reported a second quarter loss of $1.04 vs. a loss of $1.33 per share expected.

  • Ebix (EBIX) reported second quarter earnings per share of $0.35 vs. $0.32 expected on revenue of $51.0 million vs. $52.0 million.

  • Health Management Associates (HMA) reported second quarter earnings per share of $0.07 vs. $0.16 expected on revenue of $1.46 billion vs. $1.7 billion expected.

  • Tutor Perini Corp. (TPC) reported second quarter earnings per share of $0.32 vs. $0.37 expected on revenue of $1.05 billion vs. $1.07 billion expected.

Earnings

Notable companies expected to report earnings Monday include:

  • Sysco (SYY) is expected to report fourth quarter earnings per share of $0.55 vs. $0.55 a year ago on revenue of $11.62 billion vs. $11.05 billion a year ago.

  • InterOil (IOC) is expected to report a second quarter loss of $0.07 per share vs. a loss of $0.66 per share a year ago on revenue of $261.35 million vs. $299.1 million a year ago.

  • Buckeye Technologies (BKI) is expected to report fourth quarter earnings per share of $0.56 vs. $0.66 a year ago on revenue of $197.69 million vs. $224.94 million a year ago.

  • NQ Mobile (NQ) is expected to report second quarter earnings per share of $0.20 vs. $0.14 a year ago on revenue of $39.34 million vs. $19.96 million a year ago.

Economics

On the economics calendar Monday, the weekly 3- and 6-month bill auctions are due out ahead of the Treasury Budget Statement. Overnight, the German ZEW Economic Sentiment Index and the eurozone industrial production 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.

111
111 rated 1
272
272 rated 2
474
474 rated 3
656
656 rated 4
638
638 rated 5
699
699 rated 6
623
623 rated 7
486
486 rated 8
260
260 rated 9
128
128 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
DYNDYNEGY Inc10
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
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.