Benzinga Market Primer: Wednesday, March 13

Futures Slightly Lower After Mixed Tuesday

U.S. equity futures were slightly lower in early pre-market trade after a mixed day on Wall Street Tuesday. The Dow Jones Industrial Average was able to close at a new record high but the S&P 500 slipped slightly on Tuesday away from its record close.

Top News

In other news around the markets:

• French Non-Farm Payrolls fell 0.3 percent in February, below expectations of a drop of 0.2 percent in the month which would have been a flat reading month-over-month.


• Carl Icahn reportedly increased his stake in Herbalife HLF on March 8 but no filing has been made yet. The news came after headlines that the company was not the subject of an FTC investigation, which would be a huge blow to noted bear Bill Ackman.


• Boeing BA was given the go-ahead by the FAA to test its new battery casing as it looks to get the grounded 787 Dreamliner back in the air.


• S&P 500 futures fell 1.1 points to 1,545.70.


• The EUR/USD was lower at 1.3022.


• Spanish 10-year government bond yields were flat at 4.72 percent.


• Italian 10-year government bond yields were higher at 4.63 percent from 4.6 percent.


• Gold fell 0.12 percent to $1,589.90 per ounce.

Asian Markets

Asian shares were lower overnight on little news on fear of a new slowdown in China weighing on the global economy. The japanese Nikkei Index fell 0.61 percent and the Shanghai Composite Index fell 0.99 percent and the Hang Seng Index declined 1.46 percent. Also, the Korean Kospi rose 0.32 percent on reports of a new fiscal stimulus and Australian shares fell 0.5 percent.

European Markets

European shares were lower in early trade ahead of the industrial production release for the eurozone on some weak earnings from companies such as Inditex and rumors of a secondary offering to fill a capital shortfall at Commerzbank CRZBY. The Spanish Ibex Index fell 0.31 percent and the Italian FTSE MIB Index fell 0.43 percent as leaders could not form a coalition in the Senate. Meanwhile, the German DAX fell 0.08 percent and the French CAC fell 0.31 percent while U.K. shares declined 0.63 percent.

Commodities

Commodities were mixed overnight as energy futures led after Goldman Sachs GS analysts released a note saying that the commodity sell off was overdone. WTI Crude futures rose 0.43 percent to $92.94 per barrel and Brent Crude futures rose 0.16 percent to $109.87 per barrel. Copper futures fell 0.11 percent to $355.05 on global growth fears. Gold was lower and silver futures declined 0.43 percent to $29.05 per ounce.

Currencies

Currency markets were in a strong reversal mode as the pound gained and the yen gained as well on fears that further easing in both economies is not as near as originally thought. The EUR/USD was lower at 1.3022 and the dollar fell against the yen to 95.78. Overall, the Dollar Index fell 0.04 percent on weakness against the pound, the yen, the Swiss franc and the Swedish krone. The GBP/USD rose 0.4 percent, reversing Tuesday's losses, to 1.4962 and the EUR/GBP fell 0.48 percent to 0.8703 making the pound the biggest mover overnight alongside the yen.

Pre-Market Movers

Stocks moving in the pre-market included:

• Boeing BA shares rose 0.76 percent pre-market after the company got approval to test the 787 Dreamliner again by the FAA.


• J.C. Penny JCP shares fell 0.89 percent pre-market after rumors that CEO Ron Johnson was set to leave the company were quashed Tuesday.


• Spectrum Pharmaceuticals SPPI shares fell 40.47 percent pre-market on lower than expected guidance.


• Yandex YNDX shares rose 0.52 percent after falling 7.99 percent Tuesday on a secondary offering.

Earnings

Notable companies expected to report earnings Wednesday include:

• Complete Genomics GNOM is expected to report a fourth quarter loss of $0.53 per share vs. a loss of $0.67 per share a year ago.


• Express Inc. EXPR is expected to report fourth quarter EPS of $0.74 vs. $0.70 a year ago.


• Guess? GES is expected to report fourth quarter EPS of $0.87 vs. $1.05 a year ago.


• Hot Topic HOTT is expected to report fourth quarter EPS of $0.27 vs. $0.21 a year ago.


• The Men's Warehouse MW is expected to report a fourth quarter loss of $0.05 per share vs. a loss of $0.05 per share a year ago.

Economics

On the economics calendar Wednesday, MBA Purchase Applications, Retail Sales, Import and Export Prices, and Business Inventories are due out. Also, the Treasury is set to auction 10-year notes. Overnight, the Australian employment report, Swiss National Bank rate decision, and ECB Monthly Report could move markets.

Good luck and good trading.