Positive earnings and China bounce help stocks and commodities to stabilize
Stock markets around the world are rebounding a bit today, particularly in Europe where major continental indices are up in the 1.0%-1.5% range today. US indices also have been trading higher but gains have been smaller. Overnight, a rebound attempt by Chinese markets quickly fizzled out but indices did manage to stabilize, but for how long?
Earnings may play a big role in today’s US trading action with better than expected reports and/or guidance improvements out of the automotive, transport, homebuilding and pharmaceutical sectors while Dupont disappointed on both backward and forward looking numbers.
Crude oil and gold are holding steady while grains are on the rebound, clawing back some of yesterday’s losses. Last night’s weekly crop report suggested indicated growing conditions are tracking similar to last year not suddenly substantially better as had been suggested by yesterday’s big selloffs.
Currency trading has been mixed today. USD and GBP are running in the middle of the pack as UK GDP met expectations and the FOMC kicks off a two day meeting. Resource currencies led by NZD and also including AUD and CAD are on the rebound with China pressure easing for now. SEK is underperforming after Swedish retail sales came in below expectations. Other continental currencies like EUR, NOK and CHF also find themselves in the lower half of the table as they give back some of yesterday’s gains in a normal trading correction.
Twitter reports earnings after US markets close tonight, the shares fell to start the week and are trading just above their 52-week lows indicating that expectations are running very low about this quarter’s results which face a big comparable hurdle from last year’s World Cup related bubble in activity.
Ford $0.47 vs street $0.37
UPS $1.35 vs street $1.27
DuPont $1.18 vs street $1.21, cuts full year EPS guidance to $3.10 from $3.20, reduces negative forex impact expectations to $0.60 from $0.80
Merck $0.86 vs street $0.81, raises full year EPS guidance to $3.45-$3.55 from $3.35-$3.48
Pfizer $0.56 vs street $0.52 raises full year EPS guidance to $2.01-$2.07 from $1.95-$2.05
DR Horton $0.60 vs street $0.50
Husky Energy CFPS $1.20 vs street $0.96
Significant announcements released overnight include:
Canada industrial prices 0.5% vs street 0.3%
Canada raw material prices 0.0% vs street 1.0%
UK GDP over quarter 0.7% as expected
UK GDP over year 2.6% as expected
Sweden retail sales 3.8% vs street 4.0%
Upcoming significant announcements include:
9:45 am EDT US flash Service PMI street 55.0
10:00 am EDT US consumer confidence street 100.0
Two-day FOMC meeting starts, announcement at 2:00 pm EDT Wednesday
Twitter and Citrix report earnings after the US close tonight
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