Futures down ahead of data dump
15-Apr-20 07:57 ET
briefing.com
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -45.40. Nasdaq futures vs fair value: -72.30. U.S. equity futures are backtracking from yesterday's advance, as investors review the latest earnings reports and brace for data detailing the damage done by the coronavirus. Currently, the S&P 500 futures trade 45 points, or 1.6%, below fair value.
Bank of America (BAC 23.10, -0.63, -2.7%) and Goldman Sachs (GS 175.55, -2.68, -1.5%) have reported similar results to their peers yesterday by missing earnings estimates and increasing their provisions for credit losses. Shares of both companies trade lower, while UnitedHealth (UNH 275.50, +5.00, +1.9%) gains after beating profit estimates.
Today's economic data will feature the Retail Sales Report for March (Briefing.com consensus -10.0%) and the Empire State Manufacturing Survey for April (Briefing.com consensus -32.0) at 8:30 a.m. ET, followed by Industrial Production (Briefing.com consensus -3.3%) and Capacity Utilization (Briefing.com consensus 74.1%) for March at 9:15 a.m. ET and the NAHB Housing Market Index for April (Briefing.com consensus 57) at 10:00 a.m. ET.
U.S. Treasuries have edged higher, driving yields lower in a curve-flattening trade. The 2-yr yield is down two basis points to 0.20%, and the 10-yr yield is down seven basis points to 0.68%. The U.S. Dollar Index is up 0.6% to 99.48. WTI crude is down 2.0%, or $0.41, to $19.70/bbl -- revisiting recent lows.
In U.S. Corporate news:
- UnitedHealth (UNH 275.50, +5.00): +1.9% after beating earnings estimates.
- Bank of America (BAC 23.10, -0.63): -2.7% after missing earnings estimates and increasing its provision for credit losses to $4.8 billion.
- Goldman Sachs (GS 175.55, -2.68): -1.5% after missing profit expectations, but it did beat revenue estimates. Its provision for credit losses increased to $937 mln from $224 mln one year ago.
- Delta Air Lines (DAL 26.22, +1.68): +6.9% after reaching an agreement with the government for $5.4 billion in emergency payroll relief, as part of the CARES Act. Other airlines also reached agreements.
Reviewing overnight developments:
- Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note while South Korea's Kospi was closed for Election Day. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: -1.2%, China's Shanghai Composite: -0.6%, India's Sensex: -1.0%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: -0.4%.
- In economic data:
- China's March FDI -10.8% yr/yr
- Australia's April Westpac Consumer Sentiment -17.7% m/m (last -3.8%)
- New Zealand's March Food Price Index 0.7% m/m (last 2.1%)
- India's March WPI Inflation 0.90% yr/yr (expected 2.00%; last 2.26%)
- In news:
- Australia's media industry will reportedly receive a relief package of AUD50 mln.
- The Japanese government has estimated that there could be roughly 850,000 critical cases of the coronavirus and 400,000 deaths if no actions are taken.
- However, Japan's government has started implementing measures to reduce interactions between people.
- The People's Bank of China injected CNY100 bln through a one-year medium term lending facility at 2.95%, down from the previous rate of 3.15%.
- Yonhap reported that a South Korean army officer has tested positive for the coronavirus again after making full recovery.
- Major European indices trade in negative territory. STOXX Europe 600: -1.8%, Germany's DAX: -2.1%, U.K.'s FTSE 100: -2.3%, France's CAC 40: -1.9%, Italy's FTSE MIB: -2.3%, Spain's IBEX 35: -2.6%.
- In economic data:
- France's March CPI -0.1% m/m (expected 0.0%; last 0.0%); 0.7% yr/yr (expected 0.6%; last 1.4%)
- Italy's March CPI 0.1% m/m, as expected (last -0.1%); 0.1% yr/yr, as expected (last 0.3%)
- Spain's March CPI -0.4% m/m (expected -0.3%; last -0.1%); 0.0% yr/yr (expected 0.1%; last 0.7%)
- Swiss Q2 SECO Consumer Climate -40 (last -7)
- In news:
- Eurogroup Chief, Mario Centeno, did not rule out the issuance of joint euro debt despite opposition from Austria, Germany, and the Netherlands.
- The Eurogroup will reportedly suspend dividend payments of banks and insurers at tomorrow's meeting.
- European Commission President, Ursula von der Leyen, said that a gradual lifting of lockdown measures is needed while social distancing guidelines will remain in place. However, no changes are being made at this time.
- The German government will reportedly extend its lockdown measures through May 3.
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