Overnight Markets And News
Sep E-mini S&Ps (ESU18 +0.23%) this morning are up +0.24% at a 6-1/4 month high and European stocks are up +0.73% as global trade tensions take a back seat to S&P 500 company quarterly earnings results. Of the 420 S&P 500 companies that have already reported Q2 earnings results so far, about 82% have beaten estimates, higher than the 72% the beat estimates during the same quarter last year. European stocks also found support on stronger-than-expected German Jun trade data. Asian stocks settled mostly higher: Japan +0.69%, Hong Kong +1.54%, China +2.74%, Taiwan -0.37%, Australia -0.30%, Singapore +1.66%, South Korea +0.66%, India -0.07%. Chinese stocks rallied sharply today as infrastructure and property companies surged on speculation the government will boost fiscal measures to spur domestic economic growth. The China Business Journal reported that rail investment this year may be higher than originally planned and the China Daily cited an unidentified official at the National Development and Reform Commission who said the government would roll out more policies to boost investment.
The dollar index (DXY00 -0.28%) is down -0.29%. EUR/USD (^EURUSD +0.34%) is up +0.35%. USD/JPY (^USDJPY -0.22%) is down -0.20%.
Sep 10-year T-note prices (ZNU18 -0-030) are down -2.5 ticks.
The German Jun trade balance was in surplus by +21.8 billion euros, wider than expectations of +20.9 billion euros. Jun exports were unch m/m, stronger than expectations of -0.3% m/m. Jun imports rose +1.2% m/m, stronger than expectations of +0.3% m/m.
German Jun industrial production fell -0.9% m/m, weaker than expectations of -0.5% m/m.
Japan Jun labor cash earnings rose +3.6% y/y, stronger than expectations of +1.7% y/y and the largest increase in 20-1/3 years. Jun real cash earnings rose +2.8% y/y, stronger than expectations of +0.9% y/y and the biggest increase in 20-1/3 years.
Japan Jun household spending fell -1.2% y/y, stronger than expectations of -1.4% y/y, although still declined for the fifth consecutive month.
U.S. Stock Preview
Key U.S. news today includes: (1) Jun JOLTS job openings (expected -13,000 to 6.625 million, May -202,000 to 6.638 million), (2) Treasury auctions $34 billion of 3-year T-notes, (3) Jun consumer credit (expected +$15.0 billion, May +$24.559 billion).
Notable S&P 500 earnings reports today include: Disney (consensus $1.94), AES (0.38), Emerson Electric (0.86), Discovery (0.86), Pioneer Natural Resources (1.51), Intl Flavors & Fragrances (1.60), Assurant (1.83).
