Futures lower on mixed data from China
Four key data points only serve to create more uncertainty over the direction of the world's second-largest economy.
U.S. equity futures traded lower in early premarket trade following a mixed set of data from China. Officials released four separate key data points, all of which served to create more uncertainty over the fate of the world's second-largest economy than to alleviate fears of a slowdown.
Chinese industrial production rose 9.7% in July, besting the forecast of a gain of 9% and posting a sharp increase from June's 8.9% growth rate. Year-to-date, industrial production has grown 9.4% vs. 10.3% in 2012 through July.
Chinese fixed-asset investment, a proxy for corporate investment, rose 20.1% in July, slightly better than the forecast 20% gain and flat from June's reading. But retail sales rose just 13.2% in May, missing the forecast of a gain of 13.5% and dropping slightly from June's 13.3% rate of growth.
The country's inflation was cooler than expected in July, with consumer prices rising 2.7% from a year ago, compared with the forecast 2.8% rise and flat from June's reading. Producer prices fell 2.3%, an improvement from June's decline of 2.7% but below the forecast decline of 2.2%.
- S&P 500 futures fell 3.9 points to 1,689.90.
- The EUR/USD was higher at 1.3385.
- Spanish 10-year government bond yields fell one basis point to 4.51%.
- Italian 10-year government bond yields fell one basis point to 4.19%.
- Gold fell 0.08% to $1,308.80 per ounce.
Asian shares were mixed overnight following the mixed bag of China data. The Japanese Nikkei 225 Index rose 0.07%, and the Topix gained 0.12%. In Hong Kong, the Hang Seng rose 0.7% on reports that China will launch deposit insurance this year, while the Shanghai Composite gained 0.36%. Also, the Korean Kospi fell 0.17%, and Australian shares fell 0.19%.
European shares were mostly lower in early trade on little news. The Spanish Ibex fell 0.13%, and the Italian FTSE MIB declined 0.23%. Meanwhile, the German DAX slipped 0.2%, the French CAC 40 declined 0.2%, ande U.K. shares rose 0.24%.
Commodities were mixed as oil bounced from Thursday's losses. WTI crude futures rose 0.44% to $103.85 per barrel, and Brent crude futures gained 0.13% to $106.82 per barrel. Copper futures fell 0.03% to $327.15 per pound. Gold was lower, and silver futures were flat at $20.20 per ounce.
Currency markets were quiet overnight as the dollar was roughly flat. The EUR/USD was slightly higher at 1.3385, and the dollar was flat against the yen. Overall, the Dollar Index was marginally higher on strength against the Canadian dollar.
Earnings reported Thursday
- Priceline.com (PCLN) reported second-quarter EPS of $9.70 vs. $9.38 expected on revenue of $1.68 billion vs. $1.66 billion expected.
- Agrium (AGU) reported second-quarter EPS of $4.94, in line, on revenue of $7.02 billion vs. $6.95 billion expected.
- Canadian Solar (CSIQ) reported a second-quarter loss of 29 cents per share vs. a loss of 20 cents per share expected on revenue of $380.4 million vs. $419.83 million expected.
- Molycorp (MCP) reported a loss of 36 cents per share vs. an expected loss of 23 cents per share on revenue of $136.9 million vs. $157.56 million expected.
- Rackspace Hosting (RAX) reported second-quarter EPS of 16 cents vs. 13 cents expected on revenue of $375.8 million.
- Wright Medical Group (WMGI) shares fell 10.94% as the company disclosed a Food & Drug Administration nonapproval for one of its products.
- Priceline.com (PCLN) shares rose 5.99% following its earnings beat.
- Raxspace Hosting (RAX) shares rose 11.65% following its earnings beat.
- Canadian Solar (CSIQ) shares fell 0.84% after declining nearly 8% intraday. Solar earnings have been relatively poor overall in second-quarter earnings season, with First Solar (FSLR), SolarCity (SCTY) and Ascent Solar (ASTI) all reporting worse-than-expected earnings, to name a few.
Notable companies expected to report earnings Friday include:
- Magna International (MGA) is expected to report second-quarter EPS of $1.62 vs. $1.48 a year ago on revenue of $8.52 billion vs. $7.73 billion a year ago.
- Beacon Roofing Supply (BECN) is expected to report third-quarter EPS of 71 cents vs. 62 cents a year ago on revenue of $670.44 million vs. $560.53 million a year ago.
On the calendar Friday, the wholesale trade report is due out alongside the Canadian employment report.
More from Benzinga:
Copyright © 2014 Microsoft. All rights reserved.
These hot movers could rise by double digits in coming months.
VIDEO ON MSN MONEY
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.