S indices have been building on yesterday’s gains overnight and into this morning, supported by another round of generally better than expected earnings. In particular, positive results from IBM and Lam Research showed that not all technology companies may be impacted to the same degree by the impact of the higher USD.
DuPont results and guidance showed though that the USD impact does remain significant and is not contained to the technology sector. Harley Davidson’s guidance implies that the demand for big ticket consumer items may be a bit soft if a price war has started. Verizon’s results came through strong.
Blackberry could be active on the announcement of an acquisition. While small, a deal shows that the company’s management is still working to rebuild the business over breaking it up or selling it.
European markets are trading on higher as on balance ZEW investor survey results came in a bit better than expected. Ongoing Greek debt negotiations continue to have more of an effect on treasury and currency trading than on stocks as EUR is sinking again today. Meanwhile the Greek 10-year treasury yield has climbed above 13.0% after the federal government confiscated cash from the country’s municipalities to pay its bills yesterday.
Currency trading is mixed today. Gold has bounced back up toward $1,200. AUD and NZD have been climbing with AUD rebounding from yesterday’s RBA Governor Stevens inspired takedown. RBA minutes indicated tonight’s Australian inflation report could have a big influence on whether any more interest rate cuts are in the cards or not. USD, CAD, JPY and GBP are all holding steady against each other while EUR and CHF are underperforming.
Today’s economic calendar is light so the spotlight may remain firmly on the reaction in stocks and sectors to this week’s flood of earnings reports.
Blackberry has agreed to purchase WatchDox, a provider of sharing services, for $70 million.
Teva Pharmaceutical has agreed to acquire Mylan for $82.00 per share through a combination of cash and shares.
Verizon $1.02 vs street $0.95
IBM $2.91 vs street $2.82, guides 2015 FY to $15.75 to $16.50 vs street $15.85
DuPont $1.34 vs street $1.31, company raised forex impact to $0.80 from $0.60 in its 2015 guidance. Guides 2015 year to the low end of its previous $4.00-$4.20 range.
Lam Research $1.40 vs street $1.30, guides next Q to $1.39 to $1.53 above street $1.35
Harley-Davidson $1.27 vs street $1.24, cut its 2015 shipments guidance by 6K motorcycles to 276K-281K blaming aggressive price cutting by its competitors
Teck Resources $0.11 vs street $0.15
Canadian National $0.86 vs street $0.85, guides 2015 EPS growth above 10%.
Celestica $0.19 vs street $0.21
Economic reports released overnight and this morning include:
Sweden unemployment rate 8.0% vs street 8.3%
Germany ZEW current 70.2 vs street 56.5
Germany ZEW expectations 53.3 vs street 55.3
Eurozone ZEW expectations 64.8 vs previous 62.4
Eurozone 2015 Govedrnment Debt to GDP 91.9% vs previous 90.9%
Economic reports due later today include:
4:00 pm EDT Canada federal budget
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