Futures flat on strong Chinese trade data
After the Dow and the S&P 500 closed at all time highs, US markets are set to open unchanged.
U.S. equity futures were flat in early premarket trade despite China reporting a rise in its trade balance in April.
China reported that its trade balance swung back to a surplus in April of $18.16 billion vs. a deficit of $0.88 billion in March. Economists were expecting a surplus of $15.05 billion and the beat was driven by better than expected export growth, as exports grew 14.7%, better than the 10.3% expected.
In other news, Manchester United PLC (MANU) has announced that its manager, Sir Alex Ferguson, the most successful manager in English soccer history, is set to retire at the end of this season, having won the Barclays Premier League for a record 20th time.
Chinese gold imports more than doubled in March to a record high before the slump in gold prices. Analysts now expect imports to grow further as prices have fallen sharply since then.
Reuters reported that the European Central Bank is considering buying bad loans from banks in crisis-stricken nations in southern Europe to relieve stresses on banks in an effort to spur more lending to small and medium enterprises (SME's).
S&P 500 futures were flat at 1,620.60.
The EUR/USD was higher at 1.3116.
Spanish 10-year government bond yields fell 2 basis points to 4.09%.
Italian 10-year government bond yields fell 1 basis point to 3.86%.
Gold rose 0.37% to $1,454.10 per ounce.
Asian shares were higher following the better than expected Chinese trade data. The Japanese Nikkei Index rose 0.74% and the Shanghai Composite Index rose 0.48% while the Hang Seng Index gained 0.86%. Also, the Korean Kospi rose 0.11% and Australian shares added 1.09%.
European shares were modestly higher following continued earnings momentum globally as well as following the positive sentiment from Asia on the back of the Chinese trade data. The Spanish Ibex Index rose 0.05% and the Italian FTSE MIB Index gained 0.2%. Meanwhile, the German DAX added 0.22% and the French CAC 40 rose 0.42% while U.K. shares gained 0.09%.
Commodities were mixed as energy futures traded near flat and metals traded mostly higher. WTI crude futures rose 0.04% to $95.66 per barrel and Brent crude futures fell 0.19% to $104.20 per barrel. Copper futures rallied 0.73% to $332.65 per pound on the Chinese data. Gold was higher and silver futures declined 0.17% to $23.77 per ounce.
Currency markets were quiet overnight with moves in major pairs constrained. The EUR/USD was higher at 1.3116 and the dollar fell against the yen to 98.92. Overall, the Dollar Index fell 0.12% on weakness against the euro, the yen, and the Swiss franc.
Earnings reported Tuesday
Key companies that reported earnings Tuesday include:
Disney (DIS) reported first quarter earnings per share of $0.79 vs. $0.76 expected on revenue of $10.6 billion vs. $10.48 billion expected.
Discovery Communications (DISCA) reported first quarter earnings per share of $0.63 vs. $0.65 on revenue of $1.16 billion vs. $1.15 billion.
Marathon Oil Corp. (MRO) reported first quarter earnings per share of $0.51 vs. $0.72 on revenue of $4.11 billion vs. $4.25 billion.
Molson Coors Brewing Co. (TAP) reported first quarter earnings per share of $0.30 vs. $0.34 on revenue of $828.5 million vs. $854.16 million.
TripAdvisor (TRIP) reported first quarter earnings per share of $0.50 vs. $0.46 on revenue of $229.9 million vs. $223.76 million.
Stocks moving in the premarket included:
Disney (DIS) shares fell 0.86% premarket following its first quarter earnings release.
Marathon Oil (MRO) shares fell 1.66% premarket following its weaker first quarter earnings report.
Caterpillar (CAT) shares fell 0.09% premarket despite the better than expected Chinese trade data.
U.S. Steel (X) shares fell 0.66% premarket on fears of future Chinese steel imports following the trade data.
Notable companies expected to report earnings Wednesday include:
AOL (AOL) is expected to report first quarter earnings per share of $0.35 vs. $0.22 a year ago.
CF Industries (CF) is expected to report first quarter earnings per share of $6.02 vs. $6.06 a year ago.
Liberty Media Corp. (LMCA) is expected to report first quarter earnings per share of $0.32.
Sodastream (SODA) is expected to report first quarter earnings per share of $0.54 vs. $0.48 a year ago.
Toyota Motor Corp. (TM) is expected to report fourth quarter earnings per share of $1.76. vs. $0.94 a year ago.
Vivus (VVUS) is expected to report a first quarter loss of $0.51 per share vs. a loss of $0.20 per share a year ago.
On the economics calendar Wednesday, MBA purchase applications are due out and Federal Reserve Governor Jeremy Stein is set to speak. Also, the Treasury is set to auction 10-year notes. Overnight, Chinese inflation data, the European Central Bank monthly report, and British industrial production data are all expected followed by the Bank of England's interest rate decision.
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