Futures on edge after 200-point swing in Dow

Global shares sink on weak Chinese data and concerns the Fed might start wind down its stimulus measures.

By Benzinga May 23, 2013 8:34AM

stock market zurbar age fotostockBy Tim Parker


Investors went from euphoric to worrisome on Wednesday as the Dow Jones Industrial Average ($INDU) saw a 200 point swing, ending 0.5% lower. Technicians note that the charts show an outside reversal. In other words -- cause for concern.


There is a global selloff taking place this morning with the Dow poised to print a triple digit point loss at the open. Will it hold through the day or will we see another big reversal like we saw Wednesday?


Morning news

  • S&P 500 futures are down 19.50 points to 1636

  • The EUR/USD was up at 0.23% to 1.2886


Asia Pacific markets

The Nikkei plunged 7.32% or 1143.23 to 14483.98. Weak Chinese data and the growing fear that the Federal Reserve might dial back its bond buying sooner than expected is causing a global selloff.


Other markets were mostly down. The Kopsi was down 1.24%, the Shanghai composite was down 1.16%, and the ASX 200, the Australian index, was down 2%.


European markets

European markets aren't immune from this morning's selloff. The Spanish Ibex Index was down 2.3% and the Italian FTSE MIB Index was down 3%. Meanwhile, the German DAX was down 2.77% and the French CAC 40 shed 2.57% while the U.K. market was down 2%.


Commodities

Commodities were mostly lower with gold attracting some risk-off interest. WTI crude futures fell 1.33% to $93.03 per barrel while Brent crude futures fell 1.13% to $101.44 per barrel. Copper futures were down 2.28% to $330.35 and silver futures were up 0.08% to $22.49 per ounce.


Currencies

The Japanese yen showed strength against the dollar, gaining 1.69% at101.41. The GBP/USD was up fractionally at 1.507, and the EUR/USD was up 0.27% to 1.2386.


Earnings reported Wednesday

  • Hewlett-Packard (HPQ) reported earnings per share of $0.87 -- 7% higher than the consensus number of $0.81. Revenues were light at $27.58 versus an expectation of $28.51 billion.

  • Lowe's (LOW) reported earnings per share of$0.49 versus estimates of $0.51 with revenues of $13.09 billion. Analysts expected $13.49 billion

  • Limited Brands (LTD) reported earnings per share $0.48 on revenues of $2.27 billion. Analysts expect $0.46 and $2.25 billion respectively.

  • Staples (SPLS) reported earnings per share of $0.26 versus estimates of $0.27. Revenues came in at $5.8 billion versus consensus of $5.93 billion.

  • Target (TGT) reported earnings per share of $1.05 versus the consensus of $0.86 on revenues $16.71 billion. The street expected $16.85 billion

Thursday's earnings

  • Sears Holdings (SHLD) is expected to report loss per share of $0.65 with revenues of $8.16 billion.

  • Gap, Inc. (GPS) is expected to report earnings per share of $0.57 with revenues of $3.68 billion

  • Salesforce.com Inc. (CRM) is expected to report earnings per share of $0.10 with revenues of $887.1 million.

  • Marvell Technology (MRVL) is expected to report earnings per share of $0.14 with revenues of $721.55 million.

  • Pandora (P) is expected to report loss per share of $0.10 on revenues of $124.03 million.

Premarket movers

  • Hewlett-Packard (HPQ) is up 14% on better than expected earnings.

  • Gamestop (GME) is up 3.31%. The company will report earnings today.

  • AMD (AMD) is down 4.04%

  • Citigroup (C) is down 3.37% with the rest of the sector on Wednesday's Fed comments.

Economics

Today, initial jobless claims will be reported at 8:30 a.m. ET, new home sales at 10:00 a.m., and natural gas inventories at 10:30 a.m.


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