Day Traders Diary
6/4/14U.S. equity futures hold modest losses amid cautious action overseas. The S&P 500 futures hover two points below fair value.
Reviewing overnight developments:
Asian markets ended mixed. Japan's Nikkei +0.2%, Hong Kong's Hang Seng -0.6%, and China's Shanghai Composite -0.7%.
In economic data:
Australia's GDP rose 1.1% quarter-over-quarter (consensus 1.0%, previous 0.8%), while the year-over-year reading climbed 3.5% (expected 3.3%, prior 2.7%). Separately, AIG Services Index ticked up to 49.9 from 48.6.
India's HSBC Services PMI rose to 50.2 from 48.5.
According to Australia's Bureau of Statistics, roughly 80% of GDP growth came from the mining sector.
Major European indices trade lower across the board. Great Britain's FTSE -0.4%, Germany's DAX -0.2%, and France's CAC -0.1%. Elsewhere, Italy's MIB -0.5% and Spain's IBEX -0.5%.
Participants received several economic data points:
Eurozone GDP rose 0.2% quarter-over-quarter, while the year-over-year reading increased 0.9%. Separately, PPI slipped 0.1% month-over-month, while the year-over-year reading fell 1.2%. All four figures matched estimates. Separately, Services PMI fell to 53.2 from 53.5 (consensus 53.5).
Great Britain's Services PMI slipped to 58.6 from 58.7 (expected 58.2).
Germany's Services PMI fell to 56.0 from 56.4 (consensus 56.4).
French Services PMI ticked down to 49.1 from 49.2 (expected 49.2).
Italy's Services PMI improved to 51.6 from 51.1 (consensus 51.5).
Spain's Services PMI fell to 55.7 from 56.5 (expected 56.1).
Among news of note:
Core European indices have spent the first half of the session in relatively narrow ranges as participants await tomorrow's policy decision from the European Central Bank, which could include a rate cut and/or the deployment of a QE-style easing program.
In U.S. corporate news:
Fuel Cell (FCEL 2.05, -0.32): -13.5% after missing the Capital IQ consensus estimate by one cent on below-consensus revenue.
Protective Life (PL 69.20, +10.48): +17.9% after agreeing to be acquired by Japan's Dai-ichi Life for $70/share, representing a 19.2% premium to yesterday's closing price.
TIBCO Software (TIBX 17.55, -3.24): -15.4% after guiding Q2 earnings and revenue below analyst expectations.
The weekly MBA Mortgage Index fell 3.1% to follow last week's downtick of 1.2%.
ADP Employment Change for May (Briefing.com consensus 200,000) will cross the wires at 8:15 ET. Separately, April Trade Balance (consensus -$41.30 billion) and Q1 Productivity (consensus -2.5%) and Unit Labor Costs (consensus 4.8%) will be reported at 8:30 ET, while the May ISM Services Index (consensus 55.5) will be released at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Fed's Beige Book for June.
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