World stocks rises up from two and a half month low, China soothes currency markets

Global Stock Markets

World stocks rose on Tuesday, supported by gains in Europe and three straight days of tech-driven rises in the United States, even though markets across Asia and especially China remained in the grip of trade turbulence. 

Wall Street was set for another firmer session as investors positioned for strong Silicon Valley earnings before the reporting season starts next week, while European shares also rose after a deal on settling a migration policy row that had threatened Germany’s coalition government.

But a July 6 deadline is looming for Washington to impose tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products. President Donald Trump also threatened on Monday to “do something” if the United States was not better treated by the World Trade Organisation.

The prospects of a full-blown trade war and relentless yuan weakening CNY= -- it has fallen 5 percent in the past two weeks to 10-month lows -- reportedly forced China into intervention via state-run banks.. The currency then reversed earlier losses to move back into positive territory for the day against the dollar.

Other Asian currencies weakened, especially those such as the Indonesian rupiah that are doubly exposed — to trade and oil prices approaching $80 a barrel LCOc1.

Wall Street was set for another firmer session as investors positioned for strong Silicon Valley earnings before the reporting season starts next week, while European shares also rose after a deal on settling a migration policy row that had threatened Germany’s coalition government.

But a July 6 deadline is looming for Washington to impose tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products. President Donald Trump also threatened on Monday to “do something” if the United States was not better treated by the World Trade Organisation.

On equity markets, Hong Kong dived as much as 3.3 percent at one point to nine-month lows .HSI, hit also by a U.S. move to block China Mobile (0941.HK) from offering services to the U.S. market. Shanghai's bourse hit a 2-year trough .SSEC though both indexes inched higher towards the close as the yuan recovered. Japan's Nikkei .N225 edged to a near three-month closing low.

The mood was more cheerful in Europe where a pan-European equity index rose half a percent , the euro firmed marginally and bond yields rose after German Chancellor Angela Merkel struck the deal with her Bavarian conservative coalition partners.

Equity futures for the U.S. S&P500 and Nasdaq ESc1 NQc1 indicated a firmer session after Wall Street ended higher on Tuesday for the third day in a row. Gains of around 1 percent in tech firms such as Microsoft and Apple offset concerns about trade and its impact on growth.

Tech shares have been relatively resilient to trade fears - the New York Stock Exchange’s index of 10 tech giants including China’s Alibaba has gained over 30 percent this year. They are seen delivering another set of robust quarterly earnings.

While U.S. growth and company earnings seem unassailable, tit-for-tat tariffs from China and Europe may ultimately prove detrimental for American businesses and jobs.

U.S. Treasury bond yields rose slightly amid the easier mood but concern about the trade row has pushed the gap between two- and 10-year yields to the narrowest since 2007 US2US10=RR

Stock futures erase losses on softer U.S. stance on foreign investments

U.S. stock index futures were nearly flat on Wednesday, pulling back from sharp losses earlier, after the Trump administration softened its stance on restricting foreign investments.

The U.S. government will rely on a modernized Committee on Foreign Investment in the United States (CFIUS) as the best approach to protect sensitive domestic technologies, a senior administration official said.

At 7:59 a.m. ET, Dow e-minis 1YMc1 were down 10 points, or 0.04 percent. S&P 500 e-minis ESc1 were down 1.25 points, or 0.05 percent and Nasdaq 100 e-minis NQc1 were down 12.75 points, or 0.18 percent.

Half an hour earlier Dow e-minis were down 129 points, S&P 500 e-minis ESc1 were down 12.25 points and Nasdaq 100 e-minis NQc1 were down 57 points.

The S&P 500 .SPX tumbled as much as 2 percent Monday on reports that the U.S. Treasury Department was drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. tech firms.

Asian shares hit 2-1/2-month high; euro, yields up after ECB comments

Asian shares rose to a fresh 2-1/2-month high on Thursday, supported by sound economic fundamentals, while expectations the European Central Bank (ECB) could start to wind down its stimulus boosted the euro and global bond yields.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.4 percent to extend its gains, hitting a 2-1/2-month high for a second straight day. Japan's Nikkei average .N225 rose 0.8 percent.

Notable gainers include the technology-heavy Taiwanese stocks, with Taiwan's main index .TWII nearing the 27-year high of 11,270 hit on January 23. The index has rallied 4.25 percent since last Wednesday, boosted by the rally in tech stocks and the Nasdaq.

The euro EUR= held near a two-week high while Germany's benchmark 10-year bond DE10YT=TWEB hit its own two-week high of 0.486 percent growing conviction the European Central Bank would announce as early as next week its intention to end a drawn-out stimulus programme by year-end.

ECB Chief Economist Peter Praet said on Wednesday that robust growth made the central bank increasingly confident that inflation is on its way back to target, raising the chances it may use next week’s meeting next week to reveal more about the end of its bond-buying program.

Praet's comments sent the euro to $1.1796 EUR=, its highest level since May 22, on Wednesday. The common currency last traded up 0.1 percent at $1.1789. The dollar index .DXY was down 0.1 percent to 93.525.

Higher yields helped to lift S&P 500 financials .SPSY, which rose 1.8 percent and were the biggest percentage gainer among S&P 500 sectors.

FAANG propels Nasdaq to record high, broader markets flat

Strong gains in tech heavyweights lifted the Nasdaq to a record intra-day high on Tuesday, while declines in financial and energy stocks weighed on the S&P 500 and Dow.

 The so-called FAANG stocks — Facebook, Amazon, Apple, Netflix and Alphabet — rose between 0.5 percent and 1.7 percent, helping the S&P technology index rise 0.5 percent.

However, investors were still wary about trade discussions and equity index futures pared gains earlier after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries.

“The market is a little bit on edge when it comes to trade talks,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

A relentless rally in stocks last year, that sent the main U.S. indexes to record highs almost every other week, came to a halt in late January on issues ranging from rising interest rates, trade concerns to geopolitical issues.

However, strength in the U.S. economy, as shown by the latest jobs report, helped investors shift their focus back to fundamentals.

S&P financials were the biggest percentage decliners with Bank of America, JPMorgan and Goldman Sachs falling more than 0.5 percent.

Twitter gained 5.1 percent on the social network’s inclusion in the benchmark S&P 500 index. Netflix, which is set to join the S&P 100, rose 1.7 percent.

Advancing issues outnumbered decliners for a 1.40-to-1 ratio on the NYSE and for a 2.07-to-1 ratio on the Nasdaq.

The S&P index recorded 38 new 52-week highs and seven new lows, while the Nasdaq recorded 159 new highs and 16 new lows.

Stock index futures rise as U.S.-China trade talks progresses

Global Stock Markets

U.S. stock index futures rose on Tuesday on signs of further progress in trade talks between the United States and China as the world’s two largest economies pull back from the brink of a full-blown trade war. 

Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms gear maker ZTE Corp (000063.SZ), sources said on Tuesday, and Beijing said it will steeply cut import tariffs for automobiles and car parts.

Shares of Ford (F.N), General Motors (GM.N), Tesla (TSLA.O), as well as the U.S.-listed shares of Ferrari (RACE.N) and Fiat (FCAU.N), were up between 0.8 percent and 2.4 percent in premarket trading.

The stock market has generally been volatile this year on a combination of factors including the fear of higher inflation spurring faster U.S. interest rate hikes and worries over a global trade war.

While investors may be relieved over the easing trade tensions, many U.S. government and industry officials view President Donald Trump is backing off from his tough stance against what they see as China’s unfair trade and market access practices.

At 7:26 a.m. ET, Dow e-minis 1YMc1 were up 55 points, or 0.22 percent. S&P 500 e-minis ESc1 were up 5 points, or 0.18 percent and Nasdaq 100 e-minis NQc1 were up 26.5 points, or 0.38 percent.

Micron (MU.O), which raised its quarterly forecast and led the chipmakers higher on Monday, jumped 5.3 percent after announcing a $10 billion share buyback.

Facebook (FB.O) edged up 0.3 percent ahead of Chief Executive Mark Zuckerberg’s defense of the company’s data practices to European lawmakers in Brussels. The testimony starts at 12:15 p.m. ET and comes three days before tough new European Union rules on data protection take effect.

The possibility of a ZTE reprieve boosted shares of optical component makers. Acacia Communications (ACIA.O), which got 30 percent of its 2017 revenue from ZTE, rose 4.6 percent, while Oclaro (OCLR.O) gained 1.4 percent.

Stock futures flat amidst rising U.S. yields and North Korea worries

Global Stock Markets

 U.S. stock index futures were little changed on Wednesday as investors assessed the impact of a surge in bond yields, while growing doubts about the U.S.-North Korea summit also weighed. 

North Korea threw next month’s summit between Kim Jong Un and President Donald Trump into doubt, threatening weeks of diplomatic progress by saying it may reconsider if Washington insists it unilaterally gives up its nuclear weapons.

A cancellation of the June 12 summit in Singapore adds to the jitters in the market, which is already dealing with China-U.S. trade tensions and inflation concerns.

The Dow Jones Industrial Average .DJI and the Nasdaq .IXIC recorded their biggest one-day percentage drop in three weeks on Tuesday after strong retail sales data stoked inflation concerns, sending the U.S. 10-year Treasury yield above the 3 percent level, its highest since July 2011. It was last at 3.0742 percent on Wednesday.

The latest report comes after markets took comfort from a recent string of data that pointed to softening inflation.

Reports on housing starts, industrial production and weekly jobless claims are all due later in the day.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were up 17 points, or 0.07 percent. S&P 500 e-minis ESc1 were up 2.5 points, or 0.09 percent and Nasdaq 100 e-minis NQc1 were up 9.25 points, or 0.13 percent.

Among stocks, Micron (MU.O) rose 1.6 percent in premarket trading after RBC Capital Markets began coverage with “outperform” while AMD (AMD.O) gained 1.8 percent after a rating upgrade at Susquehanna.

Macy’s (M.N) rose 0.1 percent ahead of the retailer’s results.

Stock Declines Ease, Bonds Gain as Dollar Edges Up: Markets Wrap

European Stock Markets

U.S. equity futures steadied alongside European stocks as global markets regained some composure following a hectic Tuesday session. The dollar rose a fourth day as concerns surrounding Italy weighed on the euro, and Treasury yields edged lower after their spike a day earlier.

Contracts for the S&P 500, Dow Jones and Nasdaq were all directionless as the Stoxx Europe 600 Index drifted. Equities in Asia nudged lower, with shares in Japan and Hong Kong declining while Australia’s main gauge eked out a gain and Korean stocks were little changed.

Italian bonds slumped and the country’s stocks underperformed as populist parties struggling to form a government discussed a potential government debt write-down. The common currency fell a third day, but core European bonds followed Treasuries higher.

Wednesday’s relative stability will be welcomed by many investors, given that fresh uncertainty about the U.S.-North Korea summit is surfacing just as violence flares in Gaza, the IMF warns on the threat protectionism poses to global growth, and Italy stands on the brink of a euro-skeptic government.

Against that backdrop U.S. Treasury yields, which act as a benchmark for global borrowing costs, have been rising as traders boost bets the Federal Reserve will accelerate monetary tightening. That’s helped drive a dollar rally and sucked cash from some other asset classes.

Elsewhere, emerging-market equities steadied following Tuesday’s plunge, but developing currencies turned lower and the lira weakened again. The Thai baht, South Korean won and Indonesian rupiah led Asian declines. The Malaysian ringgit fell for a sixth day after overseas investors pulled out a net $376 million from stocks over Monday and Tuesday in the wake of last week’s election.
Stocks

The Stoxx Europe 600 Index gained less than 0.05 percent as of 6:12 a.m. New York time, the highest in almost 15 weeks.

Futures on the S&P 500 Index dipped less than 0.05 percent to the lowest in a week.

The U.K.’s FTSE 100 Index advanced less than 0.05 percent to the highest in 16 weeks.
Germany’s DAX Index advanced 0.2 percent.
The MSCI Emerging Market Index was unchanged at the lowest in a week.
The MSCI Asia Pacific Index sank 0.1 percent.

Currencies
The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in 20 weeks.
The euro fell 0.3 percent to $1.1797, the weakest in more than 21 weeks.
The British pound declined 0.2 percent to $1.3471, the weakest in almost 20 weeks.
The Japanese yen increased 0.2 percent to 110.18 per dollar.

Bonds
The yield on 10-year Treasuries decreased one basis point to 3.06 percent.
Germany’s 10-year yield declined three basis points to 0.62 percent, the biggest drop in almost two weeks.
Britain’s 10-year yield dipped two basis points to 1.493 percent.

ASX: Things to watch today

Australian Stock Markets

On Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a disappointing day of trade and finished the day with a decline of 0.6% to 6,097.8 points.

Will the benchmark index be able to bounce back with a gain today? Here are five things that could impact trade on Wednesday.

ASX futures are pointing lower.
According to the latest SPI futures, the Australian share market is expected to open the day lower by 7 points or 0.1% following sizeable declines on Wall Street overnight. The Dow Jones fell 0.8%, the S&P 500 dropped 0.7%, and the Nasdaq ended the day 0.8% lower.

U.S. treasury yields widen.
One driver of the decline on Wall Street was a positive U.S. retail sales data release which has led to the market predicting that the Federal Reserve will raise rates three more times this year. This took 10-year Treasury Yields to 3.08% and the U.S. dollar index to its highest level in 2018. Bond proxies such as Transurban Group (ASX: TCL) could potentially come under pressure today.

The gold price is falling.
The rising U.S. dollar and widening bond yields also hit the gold price. The spot gold price is currently down almost 1.8% to US$1,290 an ounce. This could put the shares of gold miners including Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) under pressure on Wednesday.

Myer releases its quarterly sales update.
Embattled department store Myer Holdings Ltd (ASX: MYR) is expected to release its sales update for the March quarter this morning. A broker note out of Citi yesterday reveals that its analysts expect Myer to report a 4.9% drop in quarterly sales. The broker was concerned that the warm start to winter could be an issue for the retailer, putting it on a path towards breaching its debt covenants.

Telstra will be on watch again.
The Telstra Corporation Ltd (ASX: TLS) share price will be on watch again on Wednesday. The telco giant’s shares have now shed over 10% of their value this week following the release of a trading update. The market appears to be unconvinced that Telstra’s 22 cents per share dividend is sustainable. Citi put a sell rating and $2.70 price target on Telstra’s shares yesterday.

Dow’s 8-session win streak in jeopardy as U.S. stock futures dip

Global Stock Markets

U.S. stock futures edged lower Tuesday, indicating the Dow could struggle to stretch its eight-session winning streak into another day.

Dow component Home Depot Inc. was helping to lead the way lower, as the retailer’s shares fell in premarket action following earnings.

The yield on the 10-year Treasury note was poking back above the 3% handle, and traders were bracing for readings on retail sales and the housing market, as well as Federal Reserve speeches.
What are markets doing?

Dow Jones Industrial Average futures YMM8, -0.34% slipped by 41 points, or 0.2%, to 24,845, while S&P 500 futures ESM8, -0.27% eased 2.90 points, or 0.1%, to 2,728. Nasdaq-100 futures NQM8, -0.43% lost 11 points, or 0.2%, to 6,963.

On Monday, the Dow DJIA, +0.27% closed up by 68.24 points, or 0.3%, at 24,899.41, marking its eighth-straight advance and the longest positive streak since a nine-session climb in September. The S&P SPX, +0.09% and Nasdaq Composite COMP, +0.11% each rose 0.1%.
What are strategists saying?

“The surge in the U.S. 10-year yields TMUBMUSD10Y, +1.01% above the 3% mark again and comments from U.S. Commerce Secretary Ross that the gap between the U.S. and China ‘remains wide’ are dampening investors’ sentiment,” said Konstantinos Anthis, head of research at ADS Securities, referring to remarks on Monday by Wilbur Ross, which have come as the world’s two biggest economies try to reach a deal over trade disputes.  

Higher interest rates can peel some money away from stocks.

The stock market seems to have turned a corner this month, overcoming concerns about inflation, rising rates, trade fights and geopolitical tensions.

The backdrop for equities isn’t as scary as investors presumed only a few months ago, according to some strategists.

The Dow remains 6.5% below its January record close, but the blue-chip gauge has flipped positive for the year, showing a gain of 0.7% as of Monday’s finish.
What stocks are in focus?

Shares in Home Depot Inc. HD, -2.20% fell 2% in premarket trading after the home-improvement retailer posted quarterly earnings that topped forecasts, but revenue that missed Wall Street’s expectations. The company also said it had experienced a “‘slow start to the spring selling season.”

Shares in Agilent Technologies Inc. A, -0.35% dropped 6% premarket after the maker of medical instruments and other equipment posted quarterly earnings that matched forecasts late Monday.

April figures for retail sales are due to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting a 0.3% rise, and a May report on the Empire State Manufacturing Survey is expected at the same time.

US stock futures slide down ahead of Trump's decision on Iran

Global Stock Markets

U.S. stock index futures slipped on Tuesday as investors braced for President Donald Trump’s decision on whether to withdraw from the Iran nuclear deal.

 

A U.S. withdrawal would tighten economic sanctions on Iran, curtailing the country’s output that could bolster this year’s 13 percent oil rally.

Crude prices were down more than 1 percent - easing from 2014 highs, which had boosted Wall Street in the past two sessions - ahead of Trump’s decision at 1800 GMT (2:00 p.m. ET). [O/R]
“(Trump’s decision) has been so well covered, it’s probably all in the price by now.

And most recent commentary seems to be that after all the bluster, he may only partially withdraw from the deal,” said Frances Hudson, global thematic strategist at Aberdeen Standard Investments.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were down 96 points, or 0.4 percent. S&P 500 e-minis ESc1 were down 11.25 points, or 0.42 percent and Nasdaq 100 e-minis NQc1 were down 33.5 points, or 0.49 percent.

Shares of Comcast (CMCSA.O) fell 1.5 percent premarket after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox (FOXA.O) has agreed to sell to Disney (DIS.N) for $52 billion.

Fox’s shares rose 3 percent. Disney, which is due to report its results after markets close, was down 0.4 percent.

Snap Inc (SNAP.N) rose 1.5 percent after hiring Tim Stone, who had led Amazon’s (AMZN.O) $13.7-billion integration with Whole Foods, as its chief financial officer.

Citigroup (C.N) rose 1.4 percent after activist investor ValueAct invested $1.2 billion in the bank, citing its low risk and reliable revenue.

ASX futures are pointing higher

Australian Stock Markets

ASX futures are pointing higher.
 

According to the latest SPI futures, the Australian share market is expected to open the day 20 points or 0.3% higher on Tuesday.

The local market is following the lead of U.S. markets which had a positive start to the week as well. The Dow Jones started the week with a 0.4% gain, the S&P 500 rose 0.35%, and the Nasdaq climbed almost 0.8%.

Today is budget day.
Tax cuts and infrastructure spending will dominate tonight’s Federal Budget.

And while the announcement isn’t until 7:30pm Eastern Time, it seems likely that a few details will leak throughout the day. Healthcare shares and aged care companies such as Japara Healthcare Ltd (ASX: JHC) could be worth keeping an eye on today.

Oil prices continue to climb higher.
The shares of Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be set for another positive day of trade after oil prices rose again overnight.

According to Bloomberg, WTI crude oil is up 0.4% to US$70.00 a barrel and Brent crude oil is up 1% to US$75.64 a barrel. Oil prices have been rising on the back of supply concerns caused by possible sanctions on Iran.

Retail sales data is released this morning.
Retail shares including Domino’s Pizza Enterprises Ltd. (ASX: DMP), Myer Holdings Ltd (ASX: MYR), and Premier Investments Limited (ASX: PMV) will be on watch this morning when the Australian Bureau of Statistics releases its retail sales data for the month of April at 11:30am Eastern Time.

 According to Trading Economics, the consensus estimate is for retail sales rising 0.3% month-on-month.

 CYBG could be on the move.
The CYBG PLC (ASX: CYB) share price will be one to watch this morning after the UK bank confirmed that it has it has made a preliminary approach for a potential all share combination of it and Virgin Money.

The proposal would see CYBG acquire all of Virgin Money on the basis of an exchange ratio of 1.1297 new CYBG shares for each Virgin Money share.

The Dow Jones Industrial Average,

The Dow Jones Industrial Average .DJI rose 332.36 points, or 1.39 percent, to 24,262.51, the S&P 500 .SPX gained 33.69 points, or 1.28 percent, to 2,663.42 and the Nasdaq Composite .IXIC added 121.47 points, or 1.71 percent, to 7,209.62.

For the week, the Dow lost 0.2 percent and the S&P fell 0.24 percent. It was the second straight week of losses for both indexes.

By contrast, the Nasdaq gained 1.26 percent on the strength of tech stocks’ rally on Friday. The S&P 500 technology sector .SPLRCT rose 2.0 percent.

All the 11 major S&P sectors were higher, and 29 of the 30 Dow members were in the black, with Chevron Corp (CVX.N) the lone exception.

Pandora Media Inc (P.N) shares jumped 19.8 percent after the music-streaming service provider reported a smaller-than-expected quarterly loss.

Shares of CBS Corp (CBS.N) rose 9.1 percent after the media company topped revenue and profit estimates for the first quarter.

Fluor Corp (FLR.N) shares sank 22.4 percent, the most on the S&P, after the engineering and construction company posted a surprise quarterly loss due to issues with a gas-fired power project.

The S&P 500 posted 16 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 94 new highs and 47 new lows.

Volume on U.S. exchanges was 6.37 billion shares, compared to the 6.57 billion average for the full session over the last 20 trading days.

Nasdaq futures climbs on strong earnings from Microsoft & Amazon

Global Stock Markets

Nasdaq futures rose on Friday, after stellar results from Amazon, Microsoft and Intel, while other stock index futures were subdued ahead of first-quarter U.S. GDP data. 

At 7:40 a.m. ET, Dow e-minis 1YMc1 were down 80 points, or 0.33 percent. S&P 500 e-minis ESc1 were down 3.25 points, or 0.12 percent and Nasdaq 100 e-minis NQc1 were up 16.75 points, or 0.25 percent.

Amazon.com Inc (AMZN.O) surged 7.4 percent in premarket trading after the world’s largest online retailer more than doubled its profit and said it expects strong spring results.

Microsoft Corp (MSFT.O) rose 3.9 percent after topping Wall Street forecasts for profit, while Intel (INTC.O) gained 5.7 percent as strength in its data center business drove a profit beat.

The results come a day after Facebook (FB.O) closed up 9.1 percent after posting an impressive earnings beat, which calmed worries about the fallout from its use of consumer data, and led to a rebound in technology stocks.

Nearly half of the S&P 500 firms reported first-quarter earnings through Thursday, and 79.7 percent have topped profit expectations, according to Thomson Reuters data. The latest estimate for earnings growth was 23.1 percent, up from about 18 percent since the start of season.

A tug-of-war between strong earnings and concerns about inflation and interest rates have made the markets more volatile.

The U.S. 10-year Treasury yield retreated further from the 3 percent level on Friday, ahead of first-quarter GDP data due at 8:30 a.m. ET.

The numbers are expected to show U.S. economic growth slowed to an annual rate of 2 percent, from 2.9 percent in the fourth quarter, as growth in consumer spending braked sharply.

First-quarter numbers tend to be soft because of a seasonal quirk and Fed officials are likely to shrug off the weak data.

Sprint (S.N) surged more than 7 percent after Reuters reported, citing sources, the company and fellow wireless carrier T-Mobile (TMUS.O) have made progress in negotiating merger terms and are aiming to successfully complete deal talks as early as next week.

Among decliners, Starbucks Corp (SBUX.O) fell 1.82 percent after it reported stagnant store traffic at established U.S. cafes.

Colgate-Palmolive (CL.N) dropped 4 percent after the company’s quarterly sales just met analysts’ estimates as demand in emerging markets was below its expectations.

US Stock Index futures points to a strong open with tech-heavy shares

Global Stock Markets

U.S. stock index futures pointed to a strong open for the tech-heavy Nasdaq on Thursday as a slew of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S. bond yields and corporate costs. 

The Nasdaq Composite index .IXIC was set to open 60 points higher and break its five-day losing streak, its longest since November 2016.

Facebook jumped 6.84 percent in premarket trading after the social networking company reported a 63 percent surge in first-quarter profit and a rise in users, with no sign that business was hurt by a scandal over the mishandling of personal data, which unfolded in mid-March.

Shares of other internet stocks Twitter (TWTR.N) and Snap (SNAP.N), which came under the shadow of the Facebook scandal, were also higher.

Advanced Micro Devices (AMD.O) and Qualcomm (QCOM.O) were up 8.9 percent and about 1 percent after both the chipmakers posted quarterly results that beat Wall Street estimates, easing concerns about weak demand for smartphones after some Asian peers warned of slower growth.

Despite strong results from most U.S. firms that have reported so far, investors have been reacting to signs that rising inflation could take a toll on corporate profits.

The 10-year U.S. Treasury yield US10YT=RR, the benchmark of global borrowing costs, crossed the 3 percent level on Tuesday for the first time in four years. [US/]

Increasing federal borrowing, together with inflation concerns due to rising commodity prices and bets on further rate increases from the Federal Reserve, sparked a sell-off in bonds.

At 7:11 a.m. ET, Dow e-minis 1YMc1 were up 40 points, or 0.17 percent. S&P 500 e-minis ESc1 were up 6.25 points, or 0.24 percent and Nasdaq 100 e-minis NQc1 were up 41 points, or 0.63 percent.

Of the 154 S&P 500 companies that reported first-quarter earnings as of Wednesday, 81.2 percent topped profit estimates. Analysts now expect earnings growth of 22 percent, according to Thomson Reuters data.

Shares of the No. 2 U.S. automaker Ford (F.N) jumped 1.5 percent after it outlined a plan to cut costs and boost profit margins at a faster pace than previously announced.

General Motors (GM.N) fell about 2 percent after the company reported a lower quarterly profit as it began the changeover to a redesigned family of high-margin pickup trucks that resulted in lower production.

Some of the companies reporting after the market close include Amazon (AMZN.O), Microsoft (MSFT.O) and Intel (INTC.O).

Twitter, tech stocks hit as Wall Street turns lower

Global Stock Markets

U.S. stocks headed lower on Wednesday with technology bearing the brunt of falls soon after opening as investors worried over rising bond yields, corporate costs and rising trade tensions with China.

Shares of the world’s biggest planemaker, rose 1.65 percent and provided some support to the Dow Jones Industrial Average index after it reported a higher-than-expected quarterly profit and raised full-year forecast for earnings and cash flow.

The yield on 10-year U.S. Treasury notes, the benchmark for global interest rates, held above 3 percent after crossing the level for the first time in four years on Tuesday, stoking concerns about higher borrowing rates for companies.

The Wall Street Journal also reported the U.S. Department of Justice has opened a criminal investigation into Chinese tech company Huawei Technologies Co [HWT.UL] over U.S. sanctions on Iran, potentially adding to tensions with Beijing.

Twitter, initially up 10 percent after a strong set of quarterly results, flipped to a 4 percent fall on the day.

All the 11 major S&P sectors were lower, led by a 0.93 percent decline in the industrial sector as shares of 3M and United Tech fell.

Caterpillar fell 0.6 percent, down for the second day after its management noted first-quarter earnings would be the “high water mark” for the year and warned of higher material costs.

Investors are watchful about other companies raising such warnings, as inflation is picking up and the Federal Reserve is in no mood to put the brakes on its own rate-hike program.

Reuters data shows that analysts are now estimating 21.1 percent profit growth in the first quarter among the S&P 500 companies, compared with 18.6 percent growth rate at the start of the earnings season.

At 9:53 a.m. ET, the Dow Jones Industrial Average was down 131.4 points, or 0.55 percent, at 23,892.73. The S&P 500 fell 0.58 percent to 2,619.37 and the Nasdaq Composite dropped 0.61 percent to 6,964.33.

The CBOE Volatility index, a gauge of short-term stock market volatility jumped to more than 1-week high to 19.41 points.

Viacom rose 1.94 percent after the media company reported better-than-expected quarterly results.
Twitter reversed course to trade down 4.9 percent after reporting its second profitable quarter and topping Wall Street estimates for revenue and monthly active users.

Facebook which is set to report after market closes on Wednesday, was down 1.55 percent.

Dow futures erase losses after strong Boeing results

Global Stock Markets

Dow Jones Industrial Average futures erased losses on Wednesday after Boeing reported strong results and forecast, but concerns about rising U.S. bond yields and corporate costs continued to weigh on U.S. stocks

Boeing (BA.N), the world’s biggest planemaker, rose 2.1 percent after it reported a higher-than-expected quarterly profit and raised its full-year forecast for earnings and cash flow.

The blue-chip Dow .DJI was on track to open 16 points higher, while the S&P 500 .SPX and the Nasdaq .IXIC were on track for slight losses.

The yield on 10-year U.S. Treasury notes US10YT=RR, the benchmark for global interest rates, held above 3 percent after crossing the level for the first time in four years on Tuesday, stoking concerns about higher borrowing rates for companies.

Alphabet’s (GOOGL.O) shares fell after the company said it expected a surge in costs on Monday, while Caterpillar (CAT.N) noted first-quarter earnings would be the “high water mark” for the year and warned of higher material costs.

Investors are watchful about other companies raising such warnings, as inflation is picking up and the Federal Reserve is in no mood to put the brakes on its own rate-hike program.

Reuters data shows that analysts are now estimating 21.1 percent profit growth in the first quarter among the S&P 500 companies, compared with 18.6 percent growth rate at the start of the earnings season.

At 8:41 a.m. ET, Dow e-minis 1YMc1 were up 10 points, or 0.04 percent, with 53,518 contracts changing hands. S&P 500 e-minis ESc1 were down 7.25 points, or 0.28 percent, with 203,956 contracts traded. Nasdaq 100 e-minis NQc1 were down 10.75 points, or 0.16 percent, on volume of 71,813 contracts.

The CBOE Volatility index .VIX, a gauge of short-term stock market volatility jumped to more than 1-week high to 18.56 points.

Comcast (CMCSA.O) fell 1.9 percent after the U.S. cable company submitted a $31 billion offer for pay-TV group Sky (SKYB.L), challenging an already agreed but lower takeover bid from Rupert Murdoch’s Fox (FOXA.O).

Viacom (VIAB.O) rose 1.23 percent after the media company reported better-than-expected quarterly results.

Twitter jumped 4.2 percent after reporting its second profitable quarter and topping Wall Street estimates for revenue and monthly active users.

Facebook (FB.O) which is set to report after market closes on Wednesday, was edged up 0.5 percent.

Wall Street posts slight gains as U.S. bond yield hits 3 percent

Global Stocks Markets

U.S. stocks rose on Tuesday as strong earnings from Caterpillar, Verizon and a host of other big names boosted optimism about corporate America’s health, but the gains were curbed by rising bond yields. 

The yield on the 10-year U.S Treasury notes hit 3 percent for the first time since 2014, due to a growing supply of government debt and accelerating inflation as commodity prices gained. [US/]

Caterpillar (CAT.N), which serves as a bellwether for global economic activity jumped 4 percent, while Pratt & Whitney aircraft engines-maker United Tech (UTX.N) rose 1.3 percent. Both companies topped quarterly profit estimates and raised their full-year earnings forecasts.

The results also run contrary to a 0.4 percent fall in the S&P industrials index .SPLRCI this year due to fears of a tit-for-tat trade war with China.

About 18 percent of the S&P 500 companies had reported results as of Monday, with 78 percent topping profit estimates, according to Thomson Reuters I/B/E/S.

That has pushed up analysts’ estimates for earnings growth in the quarter to nearly 20 percent, from 18.6 percent just over than a week back, making it the strongest in seven years.

One dampener was Google-parent Alphabet (GOOGL.O), which dipped 2.5 percent as investors focused on rising costs rather than the profit beat.

At 10:01 a.m. EDT the Dow Jones Industrial Average .DJI was up 65.45 points, or 0.27 percent, at 24,514.14, the S&P 500 .SPX was up 7.14 points, or 0.27 percent, at 2,677.43 and the Nasdaq Composite .IXIC was up 20.42 points, or 0.29 percent, at 7,149.02.

Coca-Cola (KO.N) gained 2 percent after its revenue beat estimates, helped by higher demand for Coke Zero Sugar and new flavors of Diet Coke. Verizon (VZ.N) jumped 1.3 percent after its profit beat expectations.

3M (MMM.N) fell 6.1 percent after it managed to only match profit estimates.

A drop in sales for the screen glass unit of telecoms parts producer Corning Inc (GLW.N) may also add to growing market nerves about demand for high-end smartphones.

Oil rose above $75 a barrel to its highest since November 2014, supported by OPEC-led production cuts, strong demand and the prospect of renewed U.S. sanctions on Iran. [O/R]

Advancing issues outnumbered decliners by a 2.09-to-1 ratio on the NYSE and by a 2.07-to-1 ratio on the Nasdaq.

The S&P index recorded 10 new 52-week highs and 11 new lows, while the Nasdaq recorded 42 new highs and 23 new lows.

US STOCKS-Futures rise as Caterpillar leads batch of strong earnings

Global Stock Markets

 U.S. stock index futures rose on Tuesday as bond yields eased, while strong earnings from industrial heavyweights Caterpillar and United Technologies helped reinforce optimism about a first-quarter earnings season now in full swing. 

* Caterpillar, United Tech among Dow members to top results
* Verizon, Coca-Cola profit also beat estimates
* Google-parent Alphabet dips on worries of rising costs
* Futures up: Dow 0.63 pct, S&P 0.58 pct, Nasdaq 0.55 pct

A slew of strong reports from Dow Jones Industrial Average components put the blue-chip index on track to open up more than 160 points.

Shares of Caterpillar jumped 3.7 percent in premarket trading, while Pratt & Whitney aircraft engines-maker United Tech rose 2.6 percent after the companies topped quarterly profit estimates and raised their full-year earnings forecasts.

Coca-Cola was up 1.2 percent after its revenue beat estimates, helped by higher demand for Coke Zero Sugar and new flavors of Diet Coke. Verizon gained 3 percent after its profit beat expectations.
Earnings have been a bright spot, diverting attention from geopolitical and trade worries and, lately, a jump in 10-year U.S. government bond yields.

About 18 percent of S&P 500 companies have reported first-quarter results as of Monday, with 78 percent topping profit estimates, according to Thomson Reuters I/B/E/S.

Strong reports have pushed up analysts’ estimates for the quarter’s earnings growth to nearly 20 percent, from 18.6 percent at the start of the earnings season, the strongest in seven years, according to Thomson Reuters data.

ET, Dow e-minis were up 155 points, or 0.63 percent. S&P 500 e-minis were up 15.5 points, or 0.58 percent and Nasdaq 100 e-minis were up 36.75 points, or 0.55 percent.

One dampener was Google-parent Alphabet, which dipped 0.5 percent after its profit beat Wall Street estimates but its costs rose.

Not all results from Dow components were strong. Travelers fell 2 percent after the insurer’s profit missed estimates. 3M fell 3.2 percent after its results.

Yields on the benchmark 10-year U.S. bonds were 2.9715 percent. They came within striking distance of 3 percent on Monday due to a growing supply of government debt and accelerating inflation as commodity prices gained.

Oil rose above $75 a barrel to its highest since November 2014, supported by OPEC-led production cuts, strong demand and the prospect of renewed U.S. sanctions on Iran.

Wall Street flat as industrials offset lower oil; U.S. yields on radar

Global Stock Markets

U.S. stocks were little changed on Monday, with gains in industrial and healthcare stocks offseting the impact from falling oil prices, as investors kept an eye on rising U.S. bond yields.

The yield on 10-year U.S. Treasuries US10YT=RJR, the benchmark for global borrowing costs, hit 2.998 percent, its highest since January 2014. The U.S. five-year inflation swap, a key market gauge of long-term U.S. inflation, hit its highest level in 3-1/2 years.

The last time 10-year Treasury yields neared 3 percent, in 2013, it rocked risk appetite and sent stocks sliding and was shortly before oil prices went on a mighty 75 percent tumble. More recently, the stock market sold off in February as inflation expectations sent treasury yields surging.

But analysts say strong earnings could help investors overlook such concerns, at least for the moment.

The prospect of rising inflation comes as U.S. companies are reporting results for what is turning out to be a much stronger-than-expected first quarter.

Profits at S&P 500 companies are expected to have risen 20 percent in the quarter, according to Thomson Reuters I/B/E/S, making it the strongest quarter in seven years.

At 9:49 a.m. ET, the Dow Jones Industrial Average .DJI was up 7.01 points, or 0.03 percent, at 24,469.95, the S&P 500 .SPX was up 1.48 points, or 0.06 percent, at 2,671.62 and the Nasdaq Composite .IXIC was up 2.01 points, or 0.03 percent, at 7,148.14.

This week, 181 S&P 500 companies are scheduled to report including some of the technology heavy-hitters like Facebook (FB.O), Microsoft (MSFT.O), Amazon (AMZN.O) and Intel (INTC.O). Alphabet (GOOGL.O) reports after markets close on Monday.

Seven of the 11 major S&P sectors were higher, led by a 0.35 percent gain in the S&P healthacre index .SPXHC.

Merck (MRK.N) rose 1.6 percent after Goldman Sachs upgraded the stock to “buy”.
Caterpillar (CAT.N) rose 0.6 percent after Citigroup upgraded to “buy”, saying the stock could outperform over the next six to 12 months.

Boeing (BA.N) rose 0.3 percent, providing the biggest boost to the Dow and industrial stocks.
In a move that could ease tensions between the United States and China, U.S. Treasury Secretary

Steven Mnuchin said on Saturday he may travel to China to try to resolve differences over trade.
Hasbro (HAS.O) fell 1 percent after the toymaker reported a bigger-than-expected drop in quarterly revenue, blaming the liquidation of Toys ‘R’ Us.

Declining issues outnumbered advancers by a 1.15-to-1 ratio on the NYSE and by a 1.14-to-1 ratio on the Nasdaq.

The S&P index recorded three new 52-week highs and nine new lows, while the Nasdaq recorded 31 new highs and 25 new lows

US STOCKS-Wall St set to open higher despite rising U.S. yields

Global Stock Markets

 Wall Street was set for gains on Monday as optimism about the strong earnings season helped ease concerns on rising U.S. bond yields.

* Caterpillar up after Citi says stock can outperform
* Hasbro tumbles after profit misses expectations
* Futures up: Dow 0.19 pct, S&P 0.22 pct, Nasdaq 0.42 pct

The yield on 10-year U.S. Treasuries, the benchmark for global borrowing costs, hit 2.9980 percent, its highest since January 2014. The U.S. five-year inflation swap, a key market gauge of long-term U.S. inflation, hit its highest level in 3-1/2 years.

The last time 10-year Treasury yields neared 3 percent, in 2013, it rocked risk appetite and sent stocks sliding and was shortly before oil prices went on a mighty 75 percent tumble. More recently, the stock market sold off in February as inflation expectations sent treasury yields surging.

But analysts say that strong earnings could help investors overlook such concerns at least for the moment.

The prospect of rising inflation comes as U.S. companies are reporting results for what is turning out to be a much stronger-than-expected first quarter.

Profits at S&P 500 companies are expected to have risen 20 percent in the quarter, according to Thomson Reuters I/B/E/S, making it the strongest quarter in seven years.

At 8:44 a.m. ET, Dow e-minis were up 47 points, or 0.19 percent. S&P 500 e-minis were up 5.75 points, or 0.22 percent. Nasdaq 100 e-minis were up 27.75 points, or 0.42 percent.

This week, 181 S&P 500 companies are scheduled to report including some of the technology heavy-hitters like Facebook , Microsoft, Amazon and Intel. Alphabet reports after markets close on Monday.

Shares of Hasbro fell 5.9 percent in premarket trading after the toymaker reported a bigger-than-expected drop in quarterly revenue, blaming the liquidation of Toys ‘R’ Us.

Caterpillar rose 1.4 percent Citigroup upgraded to “buy”, saying the stock could outperform over the next six to 12 months.

In a move that could ease tensions between the United States and China, U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China to try to resolve the differences over trade.