Northern,WI 9/20/2012 (BasicsMedia) — 3 Things to Know Before Markets Open are as follows..
- Markets in Asia sold off in overnight trade, with Japan’s Nikkei off 1.6 percent. Shares in Europe are lower and U.S. futures point to a negative open.
- Manufacturing in China continued to contract in September, new data out of HSBC shows. The flash Chinese PMI reading improved 20 basis points to 47.8, below the neutral reading of 50.
- Japan’s trade deficit widened to ¥ 754.1 billion, or $9.62 billion, as exports declined 5.8 percent from the year-ago period. The reading was better than expectations for a ¥829.3 billion deficit.
- Spain successfully sold €4.8 billion worth of three- and ten-year bonds this morning, exceeding targets by €300 million. Yields on the ten-year fell to 5.666 percent from 6.647 percent a month earlier. Demand also improved, with a bid-to-cover ratio of 2.85 during the auction.
- Eurozone manufacturing jumped to a six month high, even as the region’s service sector weighed on the economy. Flash manufacturing PMI for the eurozone improved to 46.0 from 45.1 a month earlier. Composite PMI, which includes services, fell to 45.9.
- U.K. retail sales declined 0.2 percent in August, better than a 0.3 percent drop economists were forecasting. The fall was attributed to the Olympics, which distracted consumers from online shopping.
- Adobe missed earnings expectations yesterday and set guidance for the fourth quarter that was sharply below analyst forecasts. The company said it earned $0.58 a share in its fiscal third quarter and projected it would earn $0.53 to $0.58 in the fourth quarter. Analysts were looking for guidance of $0.67 a share
- Nike announced an $8 billion share buyback program overnight. The new buybacks come on top of $5 billion worth of shares the company will re-purchase.
- Bank of America is speeding up job cuts as it plans to cut its workforce by 16,000 employees by year’s end, the Wall Street Journal’s Dan Fitzpatrick reports. The company expects to have smaller mortgage operations and fewer branches.
- U.S. economic announcements kick off at 8:30 a.m. with initial jobless claims. Economists surveyed by Bloomberg forecast claims fell to 375,000. At 10:00 a.m. the Philadelphia Federal Reserve will put out its regional manufacturing report, with economists looking for an improvement to -4.5.
- Markets yesterday moved sideways as we trudge through earnings season. Clues about the strength of the consumer (outside of buying iPhones) is questionable. The markets seem to be waiting for some QE3 stimulus as we head into Q4.
Disclaimer: We have no position in any stock mentioned here, nor are we paid to write.