Futures lower on weak Chinese, German data
US stocks are set to open down on global growth concerns as investors await US housing reports.
U.S. equity futures were lower in premarket trade following weak data out of China and Germany. However, European shares traded higher on hopes of a European Central Bank rate cut.
The Flash Chinese HSBC manufacturing PMI for April fell to 50.5 from 51.6 in March on expectations of a reading of 51.4.
The German Manufacturing PMI slipped to 47.9 from 49.0 on expectations of a reading of 49.0 while the Services PMI declined to 49.2 from 50.9 on expectations of a reading of 51.
S&P warned that in now sees a third of a chance it would downgrade Japan from its current AA- because of its new stimulus measures. Moody's also warned that it sees increased risk of a downgrade to Japanese life insurers because of lower long-term rates by the central bank.
S&P 500 futures fell 1.4 points to 1,554.50.
The EUR/USD was lower at 1.2988.
Spanish 10-year government bond yields declined to 4.43% from 4.49%.
Italian 10-year government bond yields fell to 4.0% from 4.09%, the lowest since November 2010.
Gold fell 0.35% to $1,416.20 per ounce.
Asian shares were lower overnight following weakness in China and yen strength. The Japanese Nikkei Index fell 0.29% and the Shanghai Composite Index lost 2.57% while the Hang Seng Index lost 1.08%. Also, the Korean Kospi declined 0.4% and Australian shares gained 1.00% on stronger leading indicators.
European shares were higher in early trade on comments from ECB President Mario Draghi that hinted at an imminent rate cut. The Spanish Ibex Index rose 1.32% and the Italian FTSE MIB Index gained 1.01%. Meanwhile, the German DAX gained 0.48% and the French CAC 40 rose 1.47% while U.K. shares rose 0.81%.
Commodities were lower overnight but rebounded from session lows following the weak global PMI data. WTI crude futures declined 0.96% to $88.33 per barrel and Brent crude futures lost 1.13% to $99.26 per barrel. Copper futures fell 1.45% to $309.85 per pound on Chinese weakness. Gold was lower and silver futures declined 2.39% to $22.82 per ounce.
Currency markets were in flux overnight as the euro fell and the yen strengthened. The EUR/USD was lower at 1.2988 and the dollar fell against the yen to 98.68. Overall, the Dollar Index gained 0.34% on strength against the euro, the pound, the Swiss franc, and the Canadian dollar.
Earnings reported Monday
Key companies that reported earnings Monday include:
Caterpillar (CAT) reported first quarter earnings per share of $1.31 vs. $1.45 expected on revenue of $13.21 billion vs. $13.81 billion expected
Halliburton (HAL) reported first quarter earnings per share of $0.67 vs. $0.57 expected on revenue of $6.97 billion vs. $6.88 billion expected.
Netflix (NFLX) reported fourth quarter earnings per share of $0.31 vs. $0.18 expected on in line revenue.
Rogers Communication (RCI) reported first quarter earnings per share of $0.80 vs. $0.75 on revenue of $1.76 billion vs $3.09 billion expected.
Texas Instruments (TXN) reported first quarter earnings per share of $0.32 vs. $0.30 expected on revenue of $2.89 billion vs. $2.85 billion.
Stocks moving in the premarket included:
Netflix (NFLX) shares rose 22.76% premarket following the strong earnings report, raised guidance, and new products.
Facebook (FB) shares declined 0.82% premarket as investors await the Timeline patent lawsuit decision.
Bank of America (BAC) shares rose 1.37% premarket despite insider selling reported Monday.
Carnival Corporation (CCL) rose 0.42% premarket despite a downgrade from Nomura Monday.
Notable companies expected to report earnings Tuesday include:
Apple (AAPL) is expected to report second quarter earnings per share of $10.13 vs. $12.30 a year ago.
Amgen (AMGN) is expected to report first quarter earnings per share of $1.84 vs. $1.61 a year ago.
Cree (CREE) is expected to report third quarter earnings per share of $0.34 vs. $0.20 a year ago.
Juniper Networks (JNPR) is expected to report first quarter earnings per share of $0.21 vs. $0.16 a year ago.
Panera Bread (PNRA) is expected to report first quarter earnings per share of $1.65 vs. $1.40 a year ago.
Yum Brands (YUM) is expected to report first quarter earnings per share of $0.57 vs. $0.67 a year ago.
On the economics calendar Tuesday, the Redbook is due out followed by the U.S. flash PMI, the FHFA Home Price index, new home sales, and the Richmond Fed Manufacturing Index. Also, the Treasury is set to auction four-week bills and two-year notes. Overnight, the RBNZ rate decision is expected as well as the German IFO Business Climate Index.
More from Benzinga
geezus katy...2 reports i read, futures are higher; then one says futures are lower...wtf..??
this all, in just a matter of minutes?
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Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
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