Wall Street remains poised to stage a rebound, if early indications are anything to go by. The U.S. index futures point to a moderately higher opening on Tuesday despite the simmering the debt crisis in Europe and a lack of any market moving catalysts domestically. That said, higher Spanish and Italian bond yields reflect waning risk appetite. A few debt auctions in Europe scheduled for the week, a few first-tier data releases from the U.S. later this week and the upcoming June 17th Greek election may also serve to keep sentiment subdued.
As of 6:30 am ET, the Dow futures are gaining 78 points and the S&P 500 futures are up 7.70 points, while the Nasdaq 100 futures are adding 15.50 points.
The euphoria generated by Spain's decision to seek a bailout faded on Monday, as U.S. stocks settled lower.
On the economic front, the export & import price indexes for April are due out at 8:30 am ET. The consensus estimates call for a 1.1 percent month-over-month decline in import prices but a 0.1 percent increase in export prices.
The Treasury Budget, a monthly account of the surplus or deficit of the federal government, is due to be released at 2 PM ET. Economists expect a deficit of $125 billion for May compared to a surplus of $59.1 billion for April.
In corporate news, Texas Instruments (TXN) narrowed its second quarter earnings per share guidance to 32-36 cents from its previous guidance of 30-38 cents. The company also narrowed its revenue guidance to $3.28 billion to $3.42 billion from the $3.22 billion to $3.48 billion estimated earlier. Analysts estimate earnings of 41 cents per share on revenues of $3.35 billion.
Juniper Networks (JNPR) announced a new stock buyback program to buy up to $1 billion of its stock in addition to the $1 billion it approved in 2010.
Shanda Games (GAME) reported first quarter earnings per ADS of 22 cents per share on net revenues of $220.7 million, up about 11 percent year-over-year. The earnings exceeded estimates, while the revenues were about in line with estimates.
Finisar Corp (FNSR) reported fourth quarter non-GAAP earnings from continuing operations of 21 cents per share, lower than 23 cents per share in the previous quarter. Revenues came in at $239.91 million. The earnings were in line, while the revenues missed estimates. For the first quarter, the company estimates non-GAAP earnings of 11-15 cents per share on revenues of $218 million to $233 million. The guidance was below estimates.
Asian stocks retreated, as doubts resurfaced about the fiscal fragility of Spain notwithstanding the encouragement provided by Spain's decision to seek a bank bailout. Contagion fears and the ominous threat of a euro break-up sapped risk appetite, sending stocks, commodities and risk currencies lower.
Australia bucked the downtrend by virtue of the catch up it played to the previous session's across the board gains in the region. Bank stocks offered solid support to the markets. The index closed up 7.10 points or 0.17 percent at 4,118.
Japan's Nikkei 225 average opened lower and was seen moving sideways in early trading, stung by eurozone gloom and doom. The average pared back some of its losses by late afternoon trading after a IMF report that said the Japanese currency is moderately overvalued and power monetary policy easing has to be done for defeating deflation. The index closed down 88.18 points or 1.02 percent at 8,537.
Hong Kong's Hang Seng Index closed 81.07 points or 0.43 percent lower at 18,873. Meanwhile, India's Sensex advanced sharply after weak domestic industrial output data increased expectations of an interest rate cut.
European stocks are seeing some volatility, with the major averages currently trading moderately higher. Defensive stocks belonging to the utility, telecom and consumer staple sectors are seeing particular buying interest, reflecting that the fact that the market is still on a risk averse mode, while resource and financial stocks are seeing weakness.
French brewery Remy Cointreau reported a 57 percent increase in its full year profits, thanks to a solid showing in Asia.
The Swiss government raised its economic growth forecast for the nation to 1.4 percent in 2012, although being cautious about serious downside risk stemming from the eurozone debt crisis. That said, the 2013 growth forecast was trimmed 0.3 percentage points to 1.5 percent.
A report released by the U.K. Office for National Statistics showed that U.K.'s manufacturing output fell 0.7 percent month-over-month in April. compared to a mere 0.1 percent decline expected by economists. Industrial production overall was flat compared to the previous month.
by RTT Staff Writer
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