Wall St. Breakfast's Pre-Market Snapshot:
U.S. Futures As of 8:52 AM EST
S&P 500: +0.60; 1,504.30
NASDAQ 100: +1.50; 1,908.75
Dow: +25.00; 13,405.00
NIKKEI 225: -1.52%; 17,779.09 (-274.29)
HANG SENG: -1.40%; 20,509.15 (-291.01)
S&P/ASX 200: -1.26%; 6,231.70 (-79.40)
BSE SENSEX 30: -0.86%; 14,063.81 (-122.37)
FTSE 100: -0.35%; 6,482.10 (-23.00)
CAC 40: -0.03%; 5,888.82 (-1.67)
XETRA-DAX: -0.44%; 7,584.88 (-33.73)
Commodity Futures (Reuters/Jefferies CRB)
Oil: -0.94%; $66.30 (-$0.63)
Gold: -0.69%; $660.60 (-$4.60)
Natural Gas: -0.72%; $7.77 (-$0.06)
Silver: -0.96%; $13.35 (-$0.13)
U.S. Breaking News — see today's Wall Street Breakfast for earlier news
Trade Deficit Narrows Sharply on Record Exports
The U.S. trade deficit dropped a greater-than-expected 6.2% in April to $58.5 billion on record exports, the Commerce Department said Friday. Economists were calling for the deficit to narrow slightly to $63.5 billion, down from $63.9 billion in March. Exports were up 0.2% to a record $129.5 billion; imports came in at $188 billion. According to MarketWatch, the surprise drop may foretell a Q2 rise in GDP; on Wednesday the White House lowered its GDP growth forecast from 2.9% to 2.3%. The much-watched China trade gap widened to $19.4 billion in April, up from $17.1 billion in April 2006 and $17.2 billion last month. The total China deficit this year is $76.3 billion, up from $64.4 billion this time last year. In other regions, surpluses were seen in Hong Kong $1.0 (vs. $1.3 for March), Australia $0.7 ($1.0), Singapore $0.4 ($0.9), Argentina $0.1($0.1), and Egypt $0.1 ($0.2). Deficits were seen in Europe $10.0 ($8.9), OPEC $9.8 ($8.7), the EU $9.0 ($7.7), Japan $7.4 ($7.1), Canada $5.8 ($5.4), Mexico $5.2 ($6.7), Korea $1.0 ($1.2), Taiwan $0.7 ($1.0), and Brazil $0.3 ($0.4). Exports of food/feed were up 12.1%; semiconductor exports fell 5.0%. After dropping strongly in the early morning hours, Treasury and equity futures are currently (8:58 ET) trading in their upper-middle pre-market range.
Sources: BEA press release, MarketWatch, Bloomberg
Commentary: Dangerous Divergences in the Global Bond and Stock Markets • White House Lowers 2007 Growth Forecast, Raises Inflation Outlook • The U.S. Trade Deficit: Are We Trading Away Our Future?
Stocks/ETFs to watch: S&P 500 Index (SPY), Diamonds Trust Series 1 ETF (DIA), iShares Lehman Aggregate Bond (AGG)
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Today's Market (via Sam Collins, ChangeWave.com)
Sam Collins is on vacation for the next two weeks.
Asian Headlines (via Bloomberg.com)
• Asian Stocks Drop for Second Day on Interest Rate Concerns; Toyota Falls Asian stocks dropped the most in seven weeks on concern rising global interest rates will curb consumer spending and corporate profits.
• Hong Kong's Admission on Dollar Peg May Hurt Future Defense, Analysts Say Hong Kong's admission that it ``seriously'' considered scrapping the city's currency link five years ago will make the peg's defense from future challenges harder, said Merrill Lynch & Co. and ABN Amro Bank NV.
• Tokyo Bourse Hires Morgan Stanley, Nomura, Daiwa for IPO as Mergers Loom The Tokyo Stock Exchange hired Morgan Stanley, Nomura Holdings Inc. and Daiwa Securities Group Inc. to manage an initial public offering as the world's second-largest bourse prepares for global consolidation of securities markets.
• China Central Raises $299 Million in U.K. Share Sale for Real Estate Plans China Central Properties Ltd., an investor in distressed real estate assets, said it raised 151.2 million pounds ($299 million) in a London share sale, as it seeks funds to buy incomplete developments in the country.
• Advanced Micro Says It Plans to Increase Orders to Taiwan Semiconductor Advanced Micro Devices Inc. (AMD), the world's second-largest maker of computer processors, will give more orders to Taiwan Semiconductor Manufacturing Co. (TSM) to meet demand for graphics chips.
European Headlines (via Bloomberg.com)
• European Stocks Drop for Fifth Day; Allianz, Barclays, British Energy Fall European stocks dropped for a fifth day as rising borrowing costs heightened concern profit growth in the region will slow.
• Norilsk Nickel Profit Doubles on Record Metal Prices, Gold Asset Spinoff OAO GMK Norilsk Nickel (OTCPK:NILSY), the world's biggest producer of nickel and palladium, said annual profit more than doubled on record metal prices and the spinoff of gold assets.
• BNP Paribas Shares Advance on Report Societe Generale Is Studying a Bid Shares of BNP Paribas SA, France's biggest bank, rose as much as 3.7 percent after a report in French daily Les Echos said Societe Generale SA is studying a bid.
• AstraZeneca's Brennan, $7 Billion in Hand, Prowls for More Drug Purchases AstraZeneca Plc (AZN) Chief Executive Officer David Brennan, who spent $16.2 billion on purchases since taking over, says he'll continue buying to fill the drugmaker's product pipeline.