RTTN: Wall Street Faces Steady Open As Eurogroup Discuss Greek Request
Trading in the U.S. index futures suggest that Wall Street stocks may open on a positive note on Friday despite continuing uncertainty surrounding Greece's bailout program. After Germany relayed its reservation about Greece's formal request for a 6-month bailout extension, the Eurogroup is set to discuss the request later in the day. The developments from the discussion, the direction of oil prices and a domestic manufacturing activity data could determine the market direction of the session. Global cues remain lackluster, with Asian stocks closing mixed for the session, while the European markets are little changed, erasing early losses in the wake of encouraging service sector activity data.
At 6:15 am ET, the Dow futures are rising 14 points, the S&P 500 futures are moving up 0.75 points and the Nasdaq 100 futures are gaining 7.75 points.
U.S. stocks showed divergence on Thursday amid the continuing uncertainty concerning Greece, mixed economic data and extended declines in crude oil prices.
On the economic front, Markit is scheduled to release the results of its preliminary U.S. manufacturing survey for February at 9:45 am ET. Economists expect the index to edge up to 53.8 from 53.7 in January.
In corporate news, Intuit (INTU) reported an adjusted loss for its second quarter that was narrower than expected and its revenues exceeded estimate. Although the company's third quarter guidance was weak, it reaffirmed its 2015 guidance that was in line. Issuing the first of its two season-to-date update for 2015, the company said its sales of TurboTax Online units rose 19 percent year-over-year in the year-t0-date period through February 14th.
Marvell (MRVL) reported better than expected fourth quarter earnings, while its revenues were below estimates. The company's first quarter guidance was weak. Consolidated Edison's (ED) fourth quarter adjusted earnings and revenues also beat estimates. The company's 2015 earnings guidance was in line.
Luxury retailer Nordstrom (JWN) reported below-consensus earnings for its fourth quarter, while its revenues were ahead of expectations. The company issued weak earnings guidance for 2015. Newmont Mining (NEM) reported better than expected fourth quarter results. Brocade (BRCD) reported first quarter adjusted earnings and revenues that exceeded estimates.
The Asian markets that remained open for trading closed Friday's session mixed, as the Japanese market gained ground on a weaker yen, while the Australian market retreated on the weakness in the commodity space. The Indonesian and New Zealand markets also advanced.
The Nikkei 225 average of Japan hovered in positive territory throughout the session before closing up 67.51 points or 0.37 percent at 18,332, rising for the third straight session and hitting a fresh 15-year high. Export stocks were among the best performers of the session, as they capitalized on the weakness of the yen. On the other hand, food, pharma, utility, resource and some financial stocks came under selling pressure.
Australia's All Ordinaries saw indecision in early trading and declined steadily throughout the session before closing down 24.20 points or 0.41 percent at 5,846. Energy, financial and utility stocks came under selling pressure, while consumer staple stocks advanced strongly.
On the economic front, provisional results released by Markit Economics and the JMMA showed that the manufacturing sector continued to expand at a slower than expected pace in February. The manufacturing purchasing managers' index slipped to 51.5 in February from 52.2 in January.
European stocks rebounded from initial losses as traders digest private sector activity data. Manufacturing activity in France and Germany slowed, while service sectors activity accelerated.
The Greek issue is still unresolved, as Germany seems to have taken an opposing stance to Greece's request for a bailout. The Eurogroup is set to discuss on the Greek request later today.
In corporate news, French dairy group Danone reported a decline in its full year profits and a more modest drop in sales. However, the company said it expects its profitability to improve in 2015. U.K. insurer Standard Life reported an increase in its full year pre-tax operating profit. Telecom Italia reported a drop in its fourth quarter EBITDA and sales, although the drop was in line with expectations.
On the economic front, Markit released its preliminary PMI data for France, showing a steeper contraction in manufacturing activity but accelerating service sector activity. The manufacturing PMI slipped 2.2 points to 47 in February, below the 49.6 reading expected by economists. The service sector PMI jumped to 53 from 49.4.
A report released by the German Federal Statistical Office showed that producer prices fell 2.2 percent year-over-year in January following a 1.7 percent drop in December. Economists had expected a more modest 2 percent drop for the month. Producer prices in Germany has been falling since August 2013 and January's drop represented the steepest since a 3 percent fall in February 2010. Meanwhile, German manufacturing PMI came in lighter than expected at 50.0, while services PMI rose 1.5 points to 55.5.
