Day Traders Diary
5/15/14U.S. equity futures hold modest losses amid cautious action overseas. The S&P 500 futures trade three points below fair value.
Reviewing overnight developments:
Asian markets ended mixed. Japan's Nikkei -0.8%, China's Shanghai Composite -1.1%, and Hong Kong's Hang Seng +0.7%.
In economic data:
Japan's GDP rose 1.5% quarter-over-quarter (consensus 1.0%, previous 0.1%), while the year-over-year reading increased 5.9% (expected 4.2%, prior 0.3%). Also of note, GDP Price Index was unchanged year-over-year (consensus -0.1%, prior -0.3%), Household Confidence slipped to 37.0 from 37.5 (expected 38.3), and Tertiary Industry Activity Index came in at 2.4% month-over-month (expected 2.5%, previous -0.9%).
Australia's New Motor Vehicle Sales were unchanged month-over-month (prior -0.3%).
New Zealand's Business NZ PMI fell to 55.2 from 58.0.
Following the above-consensus Q1 GDP reading, Japan's economy minister Akira Amari said the cabinet would take a close look at Q2 and Q3 results before making a final decision regarding a 10.0% sales tax hike that is planned for next year.
Major European indices trade in mixed fashion. France's CAC -0.3%, Germany's DAX -0.1%, and Great Britain's FTSE is flat. Elsewhere, Italy's MIB -1.8% and Spain's IBEX -1.1%.
Economic data was plentiful:
Eurozone GDP increased 0.2% quarter-over-quarter (consensus 0.4%, previous 0.2%), while the year-over-year reading rose 0.9% (consensus 1.1%, prior 0.5%). Separately, CPI ticked up 0.2% month-over-month, while the year-over-year reading increased 0.7%. Both figures met expectations. Also of note, Core CPI increased 1.0% year-over-year, as expected.
Germany's GDP increased 0.8% quarter-over-quarter (forecast 0.7%, previous 0.4%), while the year-over-year reading rose 2.5% (consensus 2.2%, prior 1.3%).
French GDP was unchanged quarter-over-quarter (expected 0.2%, previous 0.2%).
Italy's GDP slipped 0.1% quarter-over-quarter (forecast 0.2%, prior 0.1%), while the year-over-year reading fell 0.5% (consensus -0.1%, previous -0.9%).
Great Britain's CB Leading Index rose 0.3% month-over-month (previous 0.4%).
Among news of note:
The euro slumped following the disappointing eurozone GDP reading for the first quarter, suggesting an increase in expectations for additional easing from the European Central Bank. The single currency hovers near 1.3665 against the dollar.
In U.S. corporate news:
Cisco Systems (CSCO 24.28, +1.47): +6.5% after beating earnings estimates on above-consensus revenue.
Gentiva Health Services (GTIV 13.58, +5.04): +59.0% after receiving a proposal to be acquired by Kindred Healthcare (KND 21.92, 0.00) for $7.00 per shares and $7.00 worth of KND common stock.
Kohl's (KSS 52.75, -1.28): -2.4% after missing earnings and revenue expectations.
Wal-Mart (WMT 76.12, -2.62): -3.3% after missing earnings and revenue estimates. The retailer guided second quarter results below consensus.
Vipshop (VIPS 161.00, +11.00): +7.3% following its better than expected results and upbeat guidance.
Weekly initial claims (Briefing.com consensus 325,000), April CPI (consensus 0.3%), and the Empire Manufacturing survey for May (consensus 4.8) will all be released at 8:30 ET, while March Net Long-Term TIC Flows will be announced at 9:00 ET. April Industrial Production (consensus 0.0%) and Capacity Utilization (consensus 79.2%) will be announced at 9:15 ET, while the Philadelphia Fed survey for May (consensus 9.1) and the May NAHB Housing Market Index (consensus 48) will cross the wires at 10:00 ET. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.