Day Traders Diary
10/29/12U.S. equity futures are modestly lower amid downbeat overseas trade. Note that U.S. equity markets will be closed today due to Hurricane Sandy. In addition, the Chicago Board Options Exchange has cancelled all trading.
Overnight, the global equity markets were mostly lower. Reports out of China suggested there is little chance of any near-term interest rate cut due to foreign currency positions and money supply growth. Also, the economy does not present the conditions for intervention since global quantitative easing has limited the nation's monetary policy options. Meanwhile, Japan was virtually unchanged following worse-than-expected retail trade data, but slightly better-than-expected large retailers' sales results. The yen was mostly weaker overnight in advance of the Bank of Japan meeting tomorrow, during which an increase to its asset purchase plan is expected. Looking at regional indices, China's Shanghai Composite lost 0.4%, Hong Kong's Hang Seng shed 0.2%, and Japan's Nikkei ended virtually unchanged.
In Europe, macro data was limited to mostly in-line and better-than-expected lending numbers out of Great Britain. In addition, German CPI will be released at 8:00 ET. Reports out of German Der Spiegel indicate the Eurozone partners will demand an additional 150 reforms when they meet again on Wednesday. Elsewhere, a Bank of England member tempered expectations following the UK's strong third quarter GDP reading, by stating that Q3 data may have received a boost from the Olympics. Nearing midday, European bourses are broadly lower. France's CAC is down 1.0%, Germany's DAX is lower by 0.7%, and UK's FTSE is off by 0.6%.
In U.S. corporate news, Burger King Worldwide (BKW 14.95, 0.00) reported third quarter earnings of $0.17 on revenue of $451.1 million. Both numbers were ahead of the Capital IQ consensus estimates which expected the fast food operator to earn $0.14 on $442.96 million in revenue. In addition, the company initiated a quarterly cash dividend of $0.04 per share.
Harris (HRS 47.14, 0.00) announced first quarter earnings of $1.14 which was $0.01 better than the Capital IQ consensus estimate. However, the communication company's revenue of $1.26 billion fell short of the expected $1.30 billion. Note that the company also reaffirmed its full-year 2013 earnings and revenue guidance.
New Oriental Education & Technology (EDU 16.69, 0.00) also reported its quarterly results. During the first quarter, the for-profit education provider earned $0.65 which was $0.10 worse than the Capital IQ consensus estimate. The company's revenue of $335.8 million also fell short of analyst expectations. Lastly, the company issued downside second quarter guidance.
Looking at today's economic data, September personal income, personal spending, and core PCE prices will all be released at 8:30 ET.
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