Ben Bernanke smiles after being sworn in as the 14th Chairman of the Federal Reserve Board during a ceremony in Washington, February 6, 2006.
Good morning. Here’s what you need to know.
- Markets in Asia were mixed in overnight trading. The Japanese Nikkei 225 advanced 1.3%, the Hong Kong Hang Seng fell 0.1%, and the Shanghai Composite fell 1.1%. European markets are trading higher with the exception of Germany, currently down 0.1%. In the United States, futures point to a mixed open.
- The eurozone current account surplus shrank to €19.6 billion in May from €23.8 billion the month before. The surplus over the past 12 months now stands at €189.5 billion, up from only €53.3 billion a year ago.
- British retail sales rose 0.2% in June, right in line with estimates, bringing the annual growth rate to 2.1% from 2.3% the month before. Economists expected a sharper slowdown to 1.6% annualized retail sales growth.
- Morgan Stanley announces second quarter earnings results this morning before the opening bell. Analysts predict the investment bank will report earnings of $0.43 per share, up from $0.29 a year ago, on revenues of $7.89 billion, up from $6.95 billion last year. So far, Goldman Sachs, Citi, Bank of America, and Wells Fargo have all exceeded estimates this reporting season.
- Intel reported second quarter earnings of $0.39 per share, right in line with expectations, but revenues came in lighter than expected, at $12.81 billion versus $12.89 billion. The company also offered Q3 revenue guidance in a range of $13-14 billion, versus analysts’ estimates for $13.72 billion. Shares are down in pre-market trading.
- IBM reported second quarter earnings of $3.91 per share, above estimates for $3.77, but revenues were only $24.9 billion, below the consensus estimate of $25.39 billion. Shares of IBM are higher in pre-market trading.
- Ebay reported second quarter earnings of $0.63 per share, a penny below the consensus estimate. Revenues were $3.87 billion, below expectations for $3.89 billion. Shares are lower in pre-market trading.
- Weekly jobless claims figures are due out in the United States at 8:30 AM ET. Economists predict initial claims fell to 344,000 in the week ended July 10 from 360,000 the week before.
- The Philadelphia Fed releases the results of its monthly Business Outlook Survey at 10 AM. Economists predict the headline index of regional business conditions fell to 6.8 from last month’s 12.5 reading, indicating a continued but slowing expansion in the region.
- Federal Reserve Chairman Ben Bernanke concludes his semi-annual Humphrey Hawkins testimony on Fed policy with an appearance before the Senate Banking Committee this morning, starting at 10 AM. Bernanke’s Q&A with the House Financial Services Committee Wednesday mostly focused on fiscal and regulatory policy issues, with little attention given to monetary policy.
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