Futures flat on mixed economic data

US markets set to open unchanged as the Federal Reserve is to begin its 2-day policy meeting.

By Benzinga Apr 30, 2013 8:27AM

stock market zurbar age fotostockBy Matthew Kanterman


U.S. equity futures were little changed in early premarket trade following mixed global economic data. Mixed data out of Japan was followed by a flood of data out of Europe, which lifted expectations of further easing by the European Central Bank on Thursday.


The eurozone unemployment rate rose to 12.1% in March, in line with expectations and higher than February's reading of 12.0%. Spain already reported that its unemployment climbed to a record last week, while Germany reported overnight that its unemployment rate was flat at 6.9% in March. Italy's unemployment rate remained flat at 11.5% on expectations of a rise to 11.7%.


Eurozone's consumer prices as measured by CPI fell in April to a 1.3% annualized rate from 1.8% in March, well below the expected 1.8% rate, raising hopes that the ECB will cut rates as it has only a price stability mandate.


Deutsche Bank (DB) announced that it was going to issue up to $6.5 billion in new stock to fill a capital shortfall as it reported a 19% rise in first quarter earnings. Earlier this year, S&P had warned that the bank would face a downgrade without more capital. Shares rose 5.52% premarket on the news.

  • S&P 500 futures were marginally lower at 1,587.30.

  • The EUR/USD was lower at 1.3073.

  • Spanish 10-year government bond yields fell 2 basis points to 4.14%.

  • Italian 10-year government bond yields fell one basis point to 3.9%.

  • Gold futures rose 0.14% to $1,469.40 per ounce.

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Asian markets

Asian shares were mixed overnight on a mixed bag of economic data out of Japan and Korea. The Japanese Nikkei Index fell 0.17% while the Shanghai Composite Index was closed and the Hang Seng Index rose 0.69%. Also, the Korean Kospi rose 1.2% and Australian shares rose 1.28% to the highest level since June of 2008.


European markets

European shares were mostly modestly higher save for Italy and Germany that saw larger gains. The Spanish Ibex Index rose 0.05% and the Italian FTSE MIB Index rose 2.2% as Prime Minister Letta successfully formed a government. Meanwhile, the German DAX rose 0.84% while the French CAC 40 fell 0.01% and U.K. shares rose 0.1%.


Commodities

Commodities were slightly weaker overnight led lower by energy futures. WTI crude futures declined 0.1% to $94.41 per barrel and Brent crude futures fell 0.15% to $103.65 per barrel. Copper futures fell 0.09% to $322.35 per pound. Gold was higher and silver futures rose 0.47% to $24.28 per ounce.


Currencies

Currency markets were rather quiet overnight as the euro weakened slightly and the yen gained. The EUR/USD was lower at 1.3073 and the dollar fell against the yen to 97.55. Overall, the Dollar Index rose 0.03% on strength against the euro and the Swiss franc despite weakness against the yen, the Canadian dollar, and the pound.


Earnings reported Monday

Key companies that reported earnings Monday include:

  • Buffalo Wild Wings (BWLD) reported first quarter earnings per share of $0.87 vs. $0.99 on revenue of $304.4 million vs. $303.71 million.

  • Herbalife (HLF) reported first quarter earnings per share of $1.27 vs. $1.07 on in-line revenue of $1.12 billion and raised guidance.

  • Express Scripts Holdings (ESRX) reported first quarter earnings per share of $0.99 on revenue of $26.06 billion vs. $25.54 billion.

Premarket movers

Stocks moving in the premarket included:

  • Deutsche Bank (DB) shares rose 5.52% premarket despite the company announcing an additional $6.5 billion, or 16% of market cap, in new equity offerings on the heels of a strong first quarter earnings report.

  • Best Buy (BBY) shares rose 1.28% on news that the company is looking to sell 50% of its European operations for $775 million.

  • PulteGroup (PHM) shares declined 0.57% premarket ahead of the release of the S&P Case-Shiller home price index and following the stronger than expected pending home sales data Monday in a move that appeared to be profit taking.

  • BP (BP) shares rose 3.45% premarket as the company reported first quarter earnings per share and declared its quarterly dividend.

Earnings

Notable companies expected to report earnings Tuesday include:

  • 3D Systems (DDD) is expected to report first quarter earnings per share of $0.21 vs. $0.17 a year ago.

  • Domino's Pizza (DPZ) is expected to report first quarter earnings per share of $0.55 vs. $0.47 a year ago.

  • Marathon Petroleum Corp. (MPC) is expected to report first quarter earnings per share of $2.16 vs. $1.70 a year ago.

  • Tenet Healthcare (THC) is expected to report first quarter earnings per share of $0.30 vs. $0.52 a year ago.

  • TRW Holdings (TRW) is expected to report first quarter earnings per share of $1.43 vs. $1.62 a year ago.

  • Valero Energy (VLO) is expected to report first quarter earnings per share of $0.98 vs. $0.31 a year ago.

  • Vertex Pharmaceuticals (VRTX) is expected to report a first quarter loss of $0.19 per share vs. earnings per share of $0.43 a year ago.

Economics

On the economics calendar Monday, the Federal Open Market Committee begins its two day policy meeting Tuesday. Data releases include the employment cost index, the Redbook, the S&P Case-Shiller home price index, the Chicago PMI, and consumer confidence. Also, the Treasury is set to auction four-week and 52-week bills. Overnight, Chinese and British manufacturing PMIs will be in focus.


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