Stocks are higher today ahead of a key report on consumer sentiment.
The final reading of the Reuters/University of Michigan Consumer Sentiment index for June is due out later this morning. Economists predict that it will show a slight improvement over the preliminary reading. They expect it to hit 83, down slightly from May's 84.5
The major stock indices are poised for a fourth straight day of gains. Dow
(INDEXDJX:.DJI) futures were up 0.23% at 14,971 this morning. Futures contracts on the S&P 500
(INDEXSP:.INX) gained 0.30% to 1,611.50. Nasdaq
(INDEXNASDAQ:.IXIC) futures climbed 0.26% to 2,907.00.
Safe-haven assets had another poor day today. Gold prices continued to fall overnight. Spot gold broke through the $1,200/ounce milestone, but recovered a bit. This morning, the yellow metal traded down 0.74% at $1,202.60. Treasuries also sold off with the 10-year yield rising 13 basis points to 2.46%.
Asian markets ended the day higher. The consistently volatile Nikkei 225
(INDEXNIKKEI:.NI225) rallied 3.5% after a huge economic data dump. Consumer prices rose only 0.1% monthly in May. On a yearly basis, deflation slowed to 0.3% from 0.7% in April as the government tries to stimulate the economy. Household spending was down 1.6% though, and the unemployment rate ticked up 0.1% to 4.1%. Industrial production rose 2% in May after April's 1.7% rise, but fell 1% from a year ago. Retail sales rose 0.8%, following a slight decline in April.
European shares mostly fell while leaders discussed cutting some of the region's red tape. France's debt to GDP ratio reached an all-time high of 91.7%, up from 90.2%. This is expected to reach 94% by next year. Today, President Francois Hollande said that the recession and lower tax revenue mean that France will probably miss their deficit target of 3.7%. Retail sales in Germany also recovered in May, rising 0.8% after falling 0.4% in April.
At the European Union Summit, Latvia was cleared for entry to the eurozone currency union and Croatia became a member of the EU.
Research In Motion Ltd
(NASDAQ:BBRY) shares plunged 18.9% in the pre-market after reporting disappointing first-quarter earnings. The smartphone maker shipped 6.8 million handsets in the quarter and generated $3.1 billion in revenue, a 15% rise from the previous quarter. But it lost $84 million or $0.13 per share, missing estimates. The company didn't specify how many new BlackBerry 10 devices it sold.
(NYSE:NKE) shares fell 1.3% despite reporting a 22% rise in profitability. The sports apparel company beat expectations with $0.76 in earnings per share. Sales in North America rose 12%, but the company was forced to resort to discounts in China, where sales were flat.
(NYSE:PFE) shares advanced 1.14% in the pre-market after the company announced that it will buy back $10 billion in stock.
Disclosure: Minyanville Studios, a division of Minyanville Media, has a business relationship with BlackBerry.
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.