Day Traders Diary
5/22/14U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures trade in line with fair value.
Reviewing overnight developments:
Asian markets ended mostly higher. Hong Kong's Hang Seng +0.5%, Japan's Nikkei +2.1%, and China's Shanghai Composite -0.2%.
In regional economic data:
China's HSBC Manufacturing PMI rose to 49.7 from 48.1 (expected 48.1).
Japan's Manufacturing PMI ticked up to 49.9 from 49.4.
Hong Kong's CPI rose 3.7% year-over-year (consensus 3.9%, previous 3.9%).
Australia's MI Inflation Expectations rose to 4.4% from 4.2%.
New Zealand's Inflation Expectations increased 2.4% quarter-over-quarter (prior 2.3%).
In Thailand, the country's army has declared a coup d'état, taking control of the government.
Core European indices trade little changed, while peripheral markets lag. France's CAC -0.3%, Great Britain's FTSE -0.1%, and Germany's DAX +0.1%. Elsewhere, Spain's IBEX -0.3% and Italy's MIB -1.1%.
Participants received several data points:
Eurozone Manufacturing PMI fell to 52.5 from 53.4 (expected 53.2), while Services PMI improved to 53.5 from 53.1 (consensus 53.0).
Germany's Manufacturing PMI fell to 52.9 from 54.1 (expected 54.0), while Services PMI rose to 56.4 from 54.7 (consensus 54.5).
Great Britain's GDP rose 0.8% quarter-over-quarter, as expected. Separately, Business Investment increased 2.7% quarter-over-quarter (consensus 2.3%, prior 2.4%) and Public Sector Net Borrowing rose GBP9.63 billion (expected GBP3.50 billion, prior GBP6.07 billion). Also of note, CBI Industrial Trends Orders ticked up to 0 from -1 (expected 4).
French Manufacturing PMI decreased to 49.3 from 51.2 (consensus 51.0), while Services PMI fell to 49.2 from 50.4 (expected 50.2). Also of note, Business Survey slipped to 99 from 100 (expected 100).
Among news of note:
The upbeat sentiment that followed the Asian session faded as European investors received PMI readings that were mixed. Most notably, French PMI readings have slipped back into contraction (below 50).
In U.S. corporate news:
Best Buy (BBY 24.05, -1.30): -4.9% after missing revenue estimates and guiding comparable store sales for the upcoming two quarters below analyst expectations.
Movado Group (MOV 35.34, -2.68): -7.1% after missing on earnings and revenue.
NetApp (NTAP 34.70, +0.21): +0.6% after reporting a bottom-line beat on below-consensus revenue.
SINA (SINA 45.60, -2.26): -4.7% after its below-consensus Q2 revenue guidance overshadowed its earnings beat.
Williams-Sonoma (WSM 67.32, +3.59): +5.6% after beating earnings and revenue expectations.
Weibo (WB 19.00, -1.25): -6.2% despite beating estimates and guiding above consensus.
Weekly initial claims (Briefing.com consensus 305K) will be released at 8:30 ET, while the Existing Home Sales report for April (consensus 4.66 million) and the April Leading Indicators report (consensus 0.5%) will cross the wires at 10:00 ET.
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