Here is what you need to know.
Today is a Fed day. Market participants will be sifting through the statement for any clues as to when the Fed may begin to hike rates. PIMCO says the three things to look for are: “The Fed’s assessment of economic conditions, risks to that outlook and the Fed’s current policy stance.” The FOMC Statement is due out at 2 p.m. ET. The US 10-year yield is unchanged at 2.00%.
Twitter missed on the top line and beat on the bottom line. The social media giant announced earnings of $US0.07 per share, excluding non-recurring items, surpassing the Wall Street estimate of $US0.04. Revenues climbed 74% to $US435.90 million, but were well shy of the $US456.55 that was anticipated. Average monthly users were in-line at 302 million.
GoPro posted a strong quarter. The company announced earnings of $US0.24 per share, excluding non-recurring items, topping the $US0.18 that was expected. Revenues surged 54.1% YoY to $US363.1 million, easily outpacing the $US341.69 that was anticipated. GoPro provided upside second quarter earnings guidance of $US0.24 to $US0.26 per share, surpassing the Wall Street estimate of $US0.16.
Buffalo Wild Wings say chicken wing costs spiked 41%. The jump in wing prices put a squeeze on earnings, which came in at $US1.52 per share, well below the $US1.63 that was expected. Revenues rose 19.8% over last year to $US440.60 million, but missed the Wall Street estimate of $US452.72 million. Comparable store sales climbed 7.0%, missing the 8.6% that was anticipated.
David Cameron pledges no new taxes if he wins the UK election. According to the Financial Times, Cameron will “promise a law banning any rise in income tax, VAT or national insurance in the next parliament.” The Great Britain pound is up 0.2% at 1.5369.
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Euro zone lending grew for the first time in three years. Private sector loans edged up 0.1% year-over-year, outpacing the flat reading that was anticipated. Data also showed M3 money supply jumped 4.6%, topping the 4.3% that was anticipated. The data has caused selling in European debt markets with the cost of borrowing in Germany surging 44%. Germany’s 10-year yield is higher by 7bps at 0.234%.
The Bank of Thailand cut rates. The central bank unexpectedly cut its benchmark interest rate 25 basis points to 1.50%. Wall Street economists were expecting the Bank of Thailand to remain on hold at 1.75%. The rate cut comes after the finance ministry lowered its 2015 growth forecast to 3.7% from 3.9%. Thailand’s baht is down 0.7% at 32.86.
Sweden’s Riksbank upped its asset purchases. The central bank left its benchmark interest rate at -0.25%, surprising economists who were expecting a cut to -0.40%. Bloomberg reports, “Policy makers will instead step up their fight against disinflation by buying another 40 billion kronor ($US4.7 billion) to 50 billion kronor in government bonds, adding to the 40 billion kronor in purchases announced since February.” Sweden’s kronor is stronger by 1.3% at 8.4055.
Global stock markets trade mixed. France’s CAC (-0.2%) leads most of Europe lower. Overnight, China’s Shanghai Composite (+0.7%) paced the advance while Australia’s ASX (-1.9%) lagged. In the US, S&P 500 futures are down 1.50 points at 2110.50.
US economic data flows. Advanced GDP is due out at 8:30 a.m. ET and pending home sales will be released at 10 a.m. ET. Crude oil inventories will cross the wires at 10:30 a.m. ET. US Treasury will hold a $US29 billion 7-year note auction. The US Dollar Index is off 0.1% at 95.97.
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