Futures rise into GDP report as metals melt down

US markets set for a higher open ahead of economic data.

By Benzinga Jun 26, 2013 8:38AM

zurbar age fotostockBy Matthew Kanterman


U.S. equity futures rose in early premarket trade ahead of the final look at first quarter GDP. Economist expect that the economy grew 2.4% in the quarter with PCE inflation rising 1.1%.


In other news, European Central Bank President Mario Draghi spoke overnight, saying that monetary policy cannot achieve real economic growth and that this puts a limit on what central banks can do. These comments seem rather cautious and untimely given the markets perceptions of tapering and stimulus withdrawal as of late.


The German IFO Institute cut its 2013 growth forecast for Germany to 0.6% from 0.7% but is still above the government's forecast of 0.5% and the Bundesbank's forecast of 0.3% growth.


France's economy contracted 0.2% in the first quarter, in line with estimates and the same from the prior reading. On an annualized basis, France's economy contracted 0.4%.

  • S&P 500 futures rose 4.1 points to 1,585.50.

  • The EUR/USD was lower at 1.3046.

  • Spanish 10-year government bond yields fell 4 basis points to 5.05%.

  • Italian 10-year government bond yields 4 basis points to 4.82%.

  • Gold plunged 3.22% to $1,234.10 per ounce.

Asian markets

Asian shares were mixed overnight as Japanese weakness was offset by strength in other regional markets. The Japanese Nikkei 225 Index fell 1.04% and the Topix Index declined 0.87%. In Hong Kong, the Hang Seng Index rose 2.43% and the Shanghai Composite Index gained 0.06% in China. Also, the Korean Kospi rose 0.16% and Australian shares rose 1.63% despite Prime Minister Gillard losing a confidence vote in Parliament.


European markets

European shares rose markedly and traded near session highs in early trade. The Spanish Ibex Index rose 1.63% and the Italian FTSE MIB Index gained 1.35%. Meanwhile, the German DAX rose 1.27% and the French CAC 40 gained 1.37% while U.K. shares rose 0.87%.


Commodities

Commodities were mixed overnight as metals plunged. WTI crude futures fell 0.29% to $95.04 per barrel and Brent crude futures rose 0.17% to $101.43 per barrel. Copper futures dropped 1.37% to $303.40 per pound. Gold was much lower and silver futures were by far the weakest, dropping 5.23% to $18.53 per ounce.


Currencies

Currency markets were not to blame for the move in metals overnight as moves in major pairs were rather tepid. The EUR/USD was lower at 1.3046 and the dollar fell against the yen by 0.28% to 97.54. Overall, the Dollar Index gained 0.16% on strength against the euro, the pound, and the Swiss franc.


Earnings reported Tuesday

Key companies that reported earnings Tuesday include:

  • Apollo Group (APOL) reported third quarter earnings per share of $1.05 vs. $0.85 expected on revenue of $946.8 million vs. $965.07 million previous.

  • Barnes & Noble (BKS) reported a fourth quarter loss of $2.11 per share vs. the expected loss of $0.99 per share on revenue of $1.28 billion vs. $1.33 billion expected.

  • Carnival Corp. (CCL) reported second quarter earnings per share of $0.09 vs. $0.06 expected on revenue of $3.5 billion vs. $3.56 billion expected.

  • Lennar (LEN) reported second quarter earnings per share of $0.43 vs. $0.33 expected on revenue of $1.43 billion vs. $1.33 billion.

  • Walgreens (WAG) reported third quarter earnings per share of $0.85 vs. $0.91 a year ago on revenue of $18.31 billion vs. $18.45 billion a year ago.

Premarket movers

Stocks moving in the premarket included:

  • Apollo Group (APOL) shares declined 4.54% premarket on the revenue miss.

  • Newmont Mining (NEM) shares fell 2.77% premarket as gold prices sank.

  • Silver Wheaton (SLW) shares plunged 4.1% premarket as silver prices dropped more than 5%.

  • Las Vegas Sands (LVS) shares declined 1.18% premarket after the company announced that its CFO is leaving the company.

Earnings

Notable companies expected to report earnings Wednesday include:

  • Bed Bath & Beyond (BBBY) is expected to report is expected to report first quarter earnings per share of $0.93 vs. $0.89 a year ago.

  • General Mills (GIS) is expected to report fourth quarter earnings per share of $0.53 vs. $0.60 a year ago.

  • Monsanto (MON) is expected to report third quarter earnings per share of $1.61 vs. $1.63 a year ago.

  • Progress Software (PRGS) is expected to report earnings per share of $0.22 vs. $0.21 a year ago.

Economics

On the economics calendar Wednesday, MBA Purchase Applications and the much-anticipated GDP report are due out. Later, the Dallas Fed President Richard Fisher and the New York Fed President William Dudley are also expected to speak and the Treasury will auction 5-year notes. Overnight, the German unemployment report and British GDP are expected.

More from Benzinga

11Comments
Jun 26, 2013 9:58AM
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Just in case you don't read replies MG....

 

You "described" GW Bush to a tee....Throughout his whole life, he fit that description perfectly.

I believe you could write his life story..And put it all in a 10 page book or Commentary...

Pretty much the reason we are at, where we are at today...

Jun 26, 2013 10:13AM
avatar
Ammo production is way up. I guess people are selling their gold and buying ammo?
Jun 26, 2013 9:16AM
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Now that the report is out, does anyone doubt we are heading for a depression?
Jun 26, 2013 9:36AM
avatar

"Gross domestic product expanded at a revised 1.8 percent annualized rate from January through March, down from a prior estimate of 2.4 percent, figures from the Commerce Department showed today in Washington. Household , which account for about 70 percent of the economy, were revised to a 2.6 percent advance compared with the 3.4 percent gain estimated last month."

 

And we are supposed to take today's figures seriously???? 

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