USD it trying to bounce back again today while US stock markets have been clawing back some of their recent losses. Yesterday’s Chicago PMI and jobless claims provided the first signs that the US economy may have rebounded in April and traders appear to the eagerly awaiting today’s manufacturing PMI reports looking for confirmation.
The USD rally has sent gold tumbling for a second straight day. Meanwhile, a manufacturing PMI miss in the UK and ongoing uncertainty over what kind of government next week’s UK election may bring has GBP under pressure although the FTSE
has managed to eke out a small gain. AUD and NZD also remain under pressure in reaction to a mixed bag of PMI, inflation and other economic reports from Australia, China, Japan and New Zealand overnight. Speculation still appears to be favouring an RBA interest rate cut at next week’s meeting.
CAD has weakened a bit this morning along with the oil price but could be active on the Canada manufacturing PMI report. US markets could trade actively through the morning around the ISM manufacturing PMI and University of Michigan consumer sentiment reports.
We also could see quite a bit of action in individual stocks today based on overnight news, particularly Tesla Motors who launched a new line of batteries as expected, plus First Solar and LinkedIn, both of whom released disappointing earnings and/or guidance.
Tesla Motors Unveiled new product line of batteries for homes, business and utilities, designed to store renewably but inconsistently generated electricity (ex solar and wind power) for dispensing at times when those means can’t generate power. Prices for the “Powerwall” home battery start at $3,000. Orders can be place now with deliveries expected to start in late summer.
Gilead Sciences $2.94 vs street $2.32, sales $7.59B vs street $6.89B, raises 2014 year sales guidance to $28.0-29.0B from $26.0-27.0B
LinkedIn $0.57 vs $0.56, sales $637.6M vs street $637.7M, guides next Q sales to $670-$675M way below street $720M, cut full year sales guidance to $2.90B from $2.93-$2.95B.
First Solar ($0.62) vs street ($0.29) sales $469M way under street $620M, strategic alliance with Caterpillar to develop solar panels for microgrid applications.
Chevron $1.37 vs street $0.79
Canadian Oil Sands $0.16 vs street $0.10
Western Union $0.39 vs street $0.38
Visa $0.63 vs street $0.62
Agnico-Eagle $0.15 vs street $0.11
First Quantum ($0.02) vs street $0.04, sales $650M vs street $727M
Economic reports released overnight and this morning include:
Manufacturing PMI Reports:
Australia 48.0 vs previous 46.3
China 50.1 vs street 50.0
China non-manufacturing 53.4 vs previous 53.7
Japan 49.9 vs previous 49.7
UK 51.9 vs street 54.6
Other significant announcements:
Japan unemployment rate 3.4% vs street 3.5%
Japan consumer prices 2.3% vs street 2.2%
Japan labour cash earnings 0.1% vs street 0.4%
Japan real cash earnings (2.6%) vs previous (2.3%)
Australia house prices 0.8% vs previous 1.4% over month
Australia Q1 producer prices 0.7% vs previous 1.1%
Australia commodity index (20.5%) vs previous (19.7%)
New Zealand QV house prices 8.3% vs previous 7.7%
Economic reports due later today include:
9:30 am EDT Canada manuf PMI previous 48.9
9:45 am EDT US Markit manuf PMI street 54.2
10:00 am EDT US ISM manuf PMI street 52.0
10:00 am EDT US construction spending street 0.5%
10:00 am EDT US UMichigan sentiment street 96.0
10:00 am EDT US UMichigan current previous 108.2
10:00 am EDT US UMichigan expectations previous 88.0
10:00 am EDT US UMichigan 1y inflation est previous 2.5%
1:00 pm EDT US Baker Hughes drill rigs previous 932