Futures rise ahead of jobs, manufacturing data
Investors await US reports after positive macro figures from China and the eurozone.
U.S. equity futures were significantly higher in premarket trading ahead of the much awaited nonfarm payrolls report. Also, China and the Eurozone reported positive macroeconomic data with stronger than expected manufacturing PMIs.
China's official manufacturing PMI fell in January, however the fall was due to a change in the methodology of the index, while the HSBC China manufacturing PMI rose to 52.3 from 51.9, beating expectations of a reading of 52.1.
The Eurozone manufacturing PMI in January rose to to 47.9 from 47.5, beating forecasts of a flat reading month over month, with broad based strength seen across the continent, which is a very positive signal.
Spanish bank stocks declined sharply overnight as Spanish markets regulator lifted the ban on short-selling in the country. In fact, every stock in the Ibex 35 Index was down on the session.
- S&P 500 futures rose 6.00 points to 1,499.20.
- The EUR/USD was rose sharply to 1.3673.
- Spanish 10-year government bond yields fell to 5.23%.
- Italian 10-year government bond yields fell to 4.32%.
- Gold rose 0.2% to $1,665.50 per ounce.
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Asian shares were mixed overnight with strength seen in China, Japan, and Australia following the Chinese manufacturing data. The Japanese Nikkei Index rose 0.47% and the Shanghai Composite Index rose 1.41% while the Hang Seng Index declined 0.03%. Also, the Korean Kospi declined 0.21% while the Australian S&P ASX Index rose 0.87%.
European shares were mostly higher save for Spain following the positive manufacturing data. The Spanish Ibex Index declined 1.08% following the lifting of the short-selling ban and the Italian MIB Index rose 0.19%. Meanwhile, the German DAX rose 0.69% and the French CAC rose 0.97% while U.K. shares rose 0.68%.
Commodities were mixed overnight with moves contained to small fluctuations. WTI crude futures declined 0.24% to $97.26 per barrel and Brent crude futures rose 0.19% to $115.77 per barrel. Copper futures rose 0.07% to $373.45 per pound on the stronger than expected Chinese data. Gold was higher and silver futures rose 0.06% to $31.37 per ounce.
Currency markets were showing strong risk-on tones overnight as the euro gained massively against all major partners. The EUR/USD was 0.66% higher at 1.3673 and the dollar rose against the yen to 92.14. Overall, the Dollar Index fell 0.3% on weakness against the euro, the Swiss franc, and the Swedish krone. The euro was strong against the greenback but was more so against the yen, rising 1.12% to 125.93, and rising 0.93% against the British pound to 0.8642. Also, the EUR/AUD rose 1.19% to 1.3178.
Stocks moving in the premarket included:
- Bebe Stores (BEBE) shares fell 4.07 premarket after the company reported earnings that missed estimates.
- Blackstone (BX) shares rose 0.38% premarket as the company reported earnings that beat estimates.
- Facebook (FB) shares rose 1.09% premarket as the stock was upgraded at Pivotal Research.
- Microsoft (MSFT) shares rose 0.51% premarket as the Surface Pro is set to launch next week. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
Notable companies expected to report earnings Friday include:
- Exxon Mobil (XOM) is expected to report fourth quarter earnings per share of $2.00 vs. $1.97 a year ago.
- Ingersoll-Rand (IR) is expected to report fourth quarter earnings per share of $0.70 vs. $0.76 a year ago.
- Legg Mason (LM) is expected to report third quarter earnings per share of $0.54 vs. $0.20 a year ago.
- Newell Rubbermaid (NWL) is expected to report fourth quarter earnings per share of $0.42. vs. $0.40 a year ago.
- Perrigo (PRGO) is expected to report second quarter earnings per share of $1.33 vs. $1.20 a year ago.
On the economics calendar Friday, nonfarm payrolls are due out. Economists expect nonfarm payrolls to rise to 160,000, while private payrolls are expected to rise to 185,000, and the unemployment rate is expected to fall to 7.7%. Also on the economics calendar are the U.S. manufacturing PMI and consumer sentiment, followed by the ISM manufacturing index and construction spending data. In addition, William Dudley of the New York Fed is set to speak.
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If I see a good manufacturing report I will puke all over my bankruptcy papers.
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