Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Food and Energy Prices Rise in US; Stocks Set to Open Higher


China and Japan's trade surpluses might become a thing of the past if their currencies keep strengthening.

MINYANVILLE ORIGINAL After ending yesterday's session flat, stocks are set to open higher ahead of the release of consumer sentiment data.

Before the opening bell, Dow (INDEXDJX:.DJI) futures gained 0.29% to 13,303.00. S&P 500 (INDEXSP:.INX) futures gained 0.36% to 1,433.60, and Nasdaq (INDEXNASDAQ:.IXIC) futures rose 0.23% to 2,719.50. European and Japanese stocks traded lower overnight.

In economic news, the Reuters/University of Michigan consumer sentiment poll is likely to show that Americans' attitudes have not gotten any more or less upbeat about the economy. The index is expected to have flatlined at 78.3 from September to October.

Food and energy prices in the US pushed up the producer price index, an indicator that usually leads consumer prices, to 1.7% last month. Excluding those volatile items, producer prices were flat.

Europe's industrial production unexpectedly improved by 0.6% in August. Forecasts were for a 0.5% decline. Surprisingly strong production from Italy and France led the region's growth.

The Chinese renminbi hit a fresh inter-day high against the dollar for the second straight day today. The slowly strengthening currency might explain why China's trade surplus fell to $23.14 billion in September from $26.66 billion in August. The stronger currency encourages imports into China and makes exports less competitive. New bank loans in China also fell below expectations despite low interest rates and lower reserve requirements.

Japan's government slashed its economic assessment for the third straight month. Economy Minister Seiji Maehara told reporters that he has "an extreme sense of crisis about current economic conditions," especially due to the appreciation of the yen, which hurts the country's exporters. The diplomatic row with China is also a source of uncertainty, as exporters are being shunned by Chinese consumers.

In equities, JPMorgan Chase (NYES:JPM) shares rose more than 1% in pre-market trading after it beat earnings estimates, reporting $1.40 per share, up from $1.02 per share in the previous quarter. The bank reported gains in the investment bank as well as increases in credit card sales, mortgages, and deposits.

Advanced Micro Devices (NYSE:AMD), the chip maker that rivals Intel (NASDAQ:INTC), warned that third quarter revenue declined by 10%. Previous estimates were for a 1-3% decline. AMD will report earnings on Oct. 18 after the market close.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
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.
Featured Videos