Futures higher after sell-off

While German data are surprisingly weak, Chinese reports indicate the slowdown in growth had eased.

By Benzinga Oct 24, 2012 7:45AM

Zurbar age fotostockU.S. equity futures rose in early Wednesday trading following a strong sell-off on Wall Street Tuesday. German business confidence missed expectations, but new data on the Chinese economy seemed to confirm that China's economy has bottomed.

 

The IFO German business confidence survey, highly correlated with GDP growth, fell in the prior month, while HSBC China flash manufacturing PMI beat expectations.

 

Comments from Bank of England Governor Mervyn King both Tuesday and overnight indicate that the BoE stands ready to ease policy further should the economy not pick up soon. Although the U.K. economy technically emerged from recession last quarter, the boost from the Olympics skewed the data and underlying growth may not be as strong as headline data showed.

Top news

  • Greek debt rose to 150.5% of GDP in the second quarter, up from 136.9% in the first quarter and well above the Troika target of 120% of GDP.
  • Manufacturing PMI's released in both France and Germany showed a faster rate of contraction of the countries' manufacturing sectors in September.
  • S&P 500 futures rose 3.1 points to 1,409.90.
  • The EUR/USD was lower at 1.2932.
  • Spanish 10-year government bond yields rose to 5.666%.
  • Italian 10-year government bond yields rose to 4.896%.
  • Gold bounced 0.05% to $1,710.20 per ounce.

 

See more of Benzinga's market news here.

 

Commodities

Commodities were stronger in early Wednesday trading following weakness Tuesday. WTI Crude futures rose 0.22% to $86.86 per barrel and Brent Crude futures rose 0.55% to $108.85 per barrel. Copper futures were stronger in early trade on the China data, rising 0.17% to $357.55 per pound. Gold was higher and silver futures rose 0.45% to $31.935 per ounce.

 

Currencies

Currency markets continued to show dollar strength in overnight trade as the euro slumped and the yen could not rally. The EUR/USD was significantly lower and the dollar rose against the yen in overnight trade. Overall, the Dollar Index rose 0.13% on strength against the euro, the Swedish krone, and the Swiss franc. The Aussie dollar was notably strong overnight as inflation in the country rose faster than expected and Chinese data was stronger than expected.

 

Premarket movers

  • Dow Chemical (DOW) rose 0.88% premarket as the company announced new cost-cutting measures, including job cuts and plant closures.
  • Norfolk Southern (NSC) shares fell 2.32% premarket following weak earnings as shipments of coal plummeted in the prior quarter.
  • Apple (AAPL) shares rose 0.61% premarket following the announcement of the iPad 4 and iPad Mini.
  • Microsoft (MSFT) shares rose 0.08% premarket as the company was charged by the EU with not complying with a 2009 settlement. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

Earnings

  • AT&T (T) is expected to report third quarter earnings per share of $0.60 vs. $0.61 a year ago.
  • Boeing (BA) is expected to report third quarter earnings per share of $1.12 vs. $1.46 a year ago.
  • Lockheed Martin (LMT) is expected to report third quarter earnings per share of $1.85 vs. $1.99 a year ago.
  • O'Reily Automotive (ORLY) is expected to report third quarter earnings per share of $1.27 vs. $1.10 a year ago.
  • Southern Copper (SCCO) is expected to report third quarter earnings per share of $0.59 vs. $0.78 a year ago.
  • Wynn Resorts (WYNN) is expected to report third quarter earnings per share of $1.34 vs. $1.05 a year ago.

Economics

On the economic calendar Wednesday, the FOMC interest rate decision is due out, although economists expect no change in the Fed's policy. Also, MBA purchase applications and new home sales will give new data on the state of the housing market in the U.S. In addition, the U.S. PMI is due out and the EIA Petroleum Status Report is set to be released.

 

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3Comments
Oct 24, 2012 11:08AM
avatar
TruthSeeker,

The market is being held up by Helicopter Ben's printing press.  We continue to print money and it has to go somewhere.  It needs to stop.

We are printing 40 Billion/month.  That is 125/person or $500/month/family.   We would be far better off if Ben just sent every family in America that freshly printed $500, than we are letting that imbecile Obama spend it for us...

Obama is Arrogant, Lazy, Corrupt and economically clueless, or he would have stopped his job destroying policies after the 3rd  annual recovery summer...
Oct 24, 2012 10:35AM
avatar
With all the negative earnings report, continued high unemployment both in USA and Europe, depressed housing market etc. the stock market should be below 10,000.  Those in control will continue to do whatever necessary to keep it propped up until the election.
Oct 24, 2012 11:34AM
avatar

Romney will save us....not.

 

Which Romney will we see today on tv, the real one or the flip flopper ?????

For War against War, for women against women, for middleclass against middleclass, for coal against coal, for medical reform against medical reform.

A real shape shifter, a chameleon. America wake up to this guy he been an opportunist all his life !

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