Amidst news that eurozone business is slowly improving, stock futures indicate that the major indicies will advance today after yesterday's drop.
After yesterday's sell-off, Dow
(INDEXDJX:.DJI) futures are 0.35% higher at 13,897. S&P 500
(INDEXSP:.INX) futures are up 0.41% to 1,499.70 and Nasdaq
(INDEXNASDAQ:.IXIC) futures slipped 0.41% to 2,723.00. Oil futures rose 0.66% to $96.80.
Later this morning, the Institute for Supply Management's non-manufacturing reading is due out. It is expected to show that the US service sector's expansion fell to 55.0 from 55.7.
(NYSE:TM) reported that profits rose 23.5% in the fourth quarter. For the full year, Toyota sold a record 8.72 million vehicles. It expects the weaker yen to improve sales in the United States this year. Guidance for 2013 was raised to 860 billion yen ($9.3 billion), exceeding analyst projections.
(NYSE:YUM) shares fell 6.3% after the KFC and Taco Bell operator warned that sales will fall this year due to a food safety scandal in China, its biggest market.
(NYSE:DIS) will report earnings after the closing bell. Analysts expect earnings per share to fall to $0.76 from $0.80 with revenue of $11.2 billion.
HSBC's reading of Chinese services purchasing manager's index rose to 54 in January from 51.7 in December 2012. The official reading, which surveys more state-owned enterprises than small businesses came in at 56.2. (PMI readings above 50 indicate expansion of the sector.)
The eurozone's composite manufacturing and services PMI rose to a 10-month high of 48.6 from 48.3 in December 2012. Germany's hit a 19-month high of 54.4. Spain's contraction slowed to 46.5, also the highest level in 19 months. France suffered its sharpest contraction since the birth of the eurozone, sinking to 42.7, a 46-month low.
Retail sales out of the eurozone showed that last Christmas wasn't a feast for many Europeans. Sales fell 0.8% on a monthly basis in December 2012, far worse than economists' estimates of a 0.5% contraction. On a yearly basis, sales were down 3.4%.
Today, the Japanese yen weakened by 1.03% against the dollar to 93.33. The move is attributed to Bank of Japan Governor Masaaki Shirakawa's offer to step down three weeks early. Shirakawa was at odds with the government, which threatened to take away the central bank's independence if it doesn't loosen monetary policy radically.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.