[BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: -20.00.
The stock market enters today's session a tick lower for the week following a modest victory on Wednesday. The S&P 500 futures are pointing towards a slightly lower open, trading 0.1% below fair value, as investors keep their eyes on Treasury yields, which remain at multi-year highs; the benchmark 10-yr yield is hovering near its Wednesday close of 3.10% -- its highest level since July 2011.
Dow components Cisco Systems (CSCO 43.50, -1.66) and Walmart (WMT 87.10, +1.02) have reported their quarterly results since yesterday's closing bell, with both companies beating top and bottom line estimates. However, their shares are mixed in pre-market trading; Walmart shares are up 1.2%, while Cisco shares are down 3.7%.
Investors will receive several economic reports today, but none of the reports are seen as market moving. The weekly Initial Claims report (Briefing.com consensus 216K) and the Philadelphia Fed Index for May (Briefing.com consensus 20.0) will be released at 8:30 AM ET, while the Conference Board's Leading Economic Index for April (Briefing.com consensus +0.4%) will cross the wires at 10:00 AM ET.
Elsewhere, West Texas Intermediate crude futures are back at a three-and-a-half year high this morning, up 1.0% at $72.19 per barrel, following an early week slump, while the U.S. Dollar Index is up 0.1% at 93.40, which marks its highest level since mid-December.
In U.S. corporate news:
- Walmart (WMT 87.10, +1.02): +1.2% after reporting above-consensus earnings and revenues for Q1.
- Cisco Systems (CSCO 43.50, -1.66): -3.7% despite reporting slightly better-than-expected earnings and revenues for fiscal Q3.
- J.C. Penney (JCP 2.76, -0.32): -10.2% after missing revenue estimates for Q1 and lowering its earnings guidance for the fiscal year.
Reviewing overnight developments:
- Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei +0.5%, Hong Kong's Hang Seng -0.5%, China's Shanghai Composite -0.5%, India's Sensex -0.7%.
- In economic data:
- Japan's March Core Machinery Orders -3.9% month-over-month (expected -2.7%; last 2.1%); -2.4% year-over-year (expected 0.3%; last 2.4%). Weekly foreign investment in Japanese stocks JPY126.30 billion (last -JPY800 million)
- China's April FDI +0.1% (last 0.5%)
- Australia's April Employment Change 22,600 (expected 20,300; last -700) and Full Employment Change 32,700 (last -25,100). April Participation Rate 65.6% (expected 65.5%; last 65.5%) and April Unemployment Rate 5.6% (expected 5.5%; last 5.5%)
- Hong Kong's April Unemployment Rate 2.8% (last 2.9%)
- In news:
- Japanese officials are reportedly considering imposing tariffs on $400 million worth of goods exported from the United States.
- Bank of Korea Governor Lee Ju-yeol said it is hard to be optimistic about the Korean economy due to weak job growth.
- Fitch commented on China, noting that bond refinancing risk for Chinese companies is on the rise.
- The Hong Kong Monetary Authority intervened once again to defend the Hong Kong dollar's peg to the U.S. dollar. The HKMA has spent nearly HKD10 billion in defense of the currency.
- Major European indices trade near their flat lines while Italy's MIB (-0.4%) underperforms once again. France's CAC +0.4%, UK's FTSE +0.3%, Germany's DAX +0.3%.
- In economic data:
- Italy's March trade surplus EUR4.53 billion (expected surplus of EUR3.74 billion; last surplus of EUR3.10 billion). EU trade surplus EUR700 million (last EUR1.12 billion)
- In news:
- The Eurozone reportedly wants to revisit the idea of "Eurobonds", which would equate to bundling riskier sovereign bonds with less risky ones in order to theoretically reduce the overall risk profile of a given bond.
- Reports out of the UK indicate Britain is likely to remain in the customs union past 2021.