Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Shanghai Composite up 1.2%, its best day since May 3. Europe is mixed and U.S. futures are modestly lower.
- Japanese Q1 GDP increased 3.5% year-over-year, beating expectations for 2.8% growth. Growth increased 0.9% from the previous quarter, showing that ‘Abenomics’ is stimulating the Japanese economy. What is Abenomics >
- Gold prices fell below the $1,400 mark yesterday and continue to fall today. A 13-F filing for Soros Fund Management showed that Soros cut his stake in the SPDR Gold Trust to 530,900 by March 31, from 600,000 at the end of December.
- Wal-mart reported earnings of $1.14 per share in line with expectations. Same store sales ex-fuel for Q1 fell 1.4%. The company said it expects Q2 profit of 1.22 – $1.27 per share, which is below expectations for $1.29 per share.
- Initial claims are out at 8:30 a.m. ET, followed by the Philadelphia Fed survey for May at 10 a.m. ET. Consensus is for initial claims to rise to 330,000, and for the general business conditions index to rise to 2.2. Follow the release at Business Insider >
- Foreign direct investment in China was up 1.21% to $38.3 billion in the first four months of the year. April FDI was $8.4 billion, up 0.4% on the year. Investment from the U.S. increased 33.2%. 29 crazy things that only happen in China >
- Cisco reported Q1 earnings of $0.51 per share, on revenue of $12.22 billion, beating expectations for $0.49 per share, on revenue of $12.17 billion. Cisco’s shares are up 8% in pre-market trading.
- Tesla’s shares are up 9% in pre-market trading. After the bell yesterday, Tesla announced that it would raise more money through a secondary offering of common stock and convertible bonds. CEO Elon Musk said that he will buy $100 million in Tesla’s stock and the proceeds of the offering will be used to payback the loan from the Department of Energy. America’s 4th automaker has arrived >
- Consumer prices and housing starts for April are out at 8:30 a.m. ET. Consensus is for consumer prices to fall 0.3% and for starts to fall to an annualized level of 969,000 units. Follow the release at Business Insider >
- Euro area exports increased 2.8% month-over-month in March. Imports fell 1% and the trade surplus widened to €18.7 billion, from €12.7 billion.
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