Futures lower on Chinese data, Fed tapering fears

Still ahead Monday are April retail sales and business inventories.

By Benzinga May 13, 2013 8:25AM

stock market zurbar age fotostockBy Matthew Kanterman


U.S. equity futures were lower in early premarket trade following some weak economic data out of China and on the heels of an article fromT he Wall Street Journal's Jon Hilsenrath about the Federal Reserve. Hilsenrath wrote that the Fed is now considering the methodology of its exit strategy -- that is, reversing its current easing policies. The real question is when to start tapering asset purchases.


In other news, China reported weaker than expected industrial production and fixed asset investment for April. Industrial production rose 9.3% from the same period a year ago, better than March's 8.9% but below forecasts of a reading of 9.5%. Also, fixed asset investment grew 20.6%, slower than March's 20.9% growth and below forecasts of 21% growth.


Carlo Cottarelli, the head of the International Monetary Fund's fiscal affairs division, said that Italy and Germany have completed most of their fiscal adjustments while France still has room to go.


Japan once again got the green light on its easing programs from the G7, sending the USD/JPY through the 102 level initially before retreating back below the level.

  • S&P 500 futures fell 6.3 points to 1,623.30.

  • The EUR/USD was lower at 1.2969.

  • Spanish 10-year government bond yields fell 1 basis point to 4.20%.

  • Italian 10-year government bond yields rose 1 basis point to 3.91%.

  • Gold fell 0.32% to $1,432.00 per ounce.

  • Click here for more of Benzinga's Top News stories!

Asian markets

Asian shares were mixed overnight as Japanese shares led and Chinese shares lagged. The Japanese Nikkei Index rose 1.2% while the Shanghai Composite Index fell 0.22% and the Hang Seng Index lost 1.42%. Also, the Korean Kospi rose 0.2% while Australian shares rose 0.08%.


European markets

European shares were lower this morning as bond spreads crept higher, while the euro weakened. The Spanish Ibex Index fell 1.39% and the Italian FTSE MIB Index fell 1.00%. Meanwhile, the German DAX declined 0.59% and the French CAC 40 lost 0.29% while U.K. shares fell 0.29%.


Commodities

Commodities were lower overnight as the dollar continued to strengthen, following moves from late last week. WTI crude futures fell 0.9% to $95.18 per barrel and Brent crude futures fell 0.71% to $103.17 per barrel. Copper futures rose 0.07% to $335.55 per pound on hopes that China has bottomed. Gold was lower and silver futures declined 0.18% to $23.62 per ounce.


Currencies

Currency markets continued to show dollar strength overnight despite the yen erasing its losses against the greenback. The EUR/USD was lower at 1.2969 and the dollar rose against the yen to 101.64. Overall, the Dollar Index rose 0.09% on strength against the Canadian dollar, the euro, the Swiss franc, the pound and the yen. Notably, the Australian dollar continued to weaken overnight against the greenback, falling to 0.9960 through parity.


Earnings reported Friday

Key companies that reported earnings Friday include:

  • Horizon Pharmaceutical (HZNP) reported a first quarter loss of $0.03 per shares vs. a loss of $0.35 loss per share expected on revenue of $9.17 million vs. $9.47 million expected.

  • Lufkin Industries (LUFK) reported first quarter earnings per share of $0.56 vs. $0.47 expected on revenue of $318 million vs. $300.47 million expected.

Premarket movers

Stocks moving in the premarket included:

  • Corning (GLW) shares rose 1.32% premarket as the company was selected to provide a new fiber optic cable line between Atlanta and Miami.

  • Raytheon (RTN) shares fell 5.52% premarket after the shares hit a 52-week high on Friday on news that the company received a new $50 million Air Force contract.

  • Carnival Corp. (CCL) shares declined 1.91% premarket on news that 2 passenger went overboard unnoticed off the coast of Australia.

  • Newmont Mining (NEM) shares fell 1.27% premarket on weaker gold prices.

Earnings

Notable companies expected to report earnings Monday include:

  • Interoil (IOC) is expected to report a first quarter loss of $0.12 vs. earnings per share of $0.19 a year ago.

  • Renren (RENN) is expected to report a first quarter loss of $0.07 per shares vs. a loss of $0.03 per share a year ago.

  • Take-Two Interactive (TTWO) is expected to report first quarter earnings per share of $0.23 vs. a loss of $0.60 per share a year ago.

Economics

On the economics calendar Monday, monthly retail sales and business inventories are the only key data points to be released. Also, the Treasury is set to auction three- and six-month bills. Overnight, German inflation and the German ZEW Economic Sentiment Index are both expected to be released.


More from Benzinga

1Comment
May 13, 2013 8:46AM
avatar
If the FED stops pumping up the market with 85B a  month, sell everything as quickly as possible.  

Maybe some longer term S&P put options would be a great idea...  I would expect the market to correct at least 2500 Dow points when the FED stops inflating,...
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

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.

113
113 rated 1
268
268 rated 2
422
422 rated 3
632
632 rated 4
512
512 rated 5
518
518 rated 6
682
682 rated 7
523
523 rated 8
343
343 rated 9
124
124 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
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.