Morning Report: Futures Slip With Europe Weakness

Includes: AIA, BBY, FXY, SPY, VGK
by: optionMONSTER

By Bryan McCormick

US stock index futures are moderately lower this morning after a mixed session in Asia and a more downbeat tone in Europe.

Stocks in Europe retreated and the euro fell after the Zew analyst and investor sentiment survey fell sharply in the most recent month. The survey reached negative territory, at -4.3, where expectations had been for a drop to 10 from the previous month's 14.

BBY Chart

The dollar gained on its basket of currencies with the exception of the Japanese yen, which remains stubbornly high. The yen was stronger after the seated prime minister met a challenge in party elections yesterday.

The Tokyo government once again made threats of intervening in the open market to try to lower the yen's value, but there was so impact on the currency. With the dollar higher this morning, commodity prices have softened.

Ahead of key retail sales data this morning, stock trading in the US has resumed doldrums levels. That is only likely to change following the economic releases this morning. The one area being most heavily traded are banking stocks.

We will also have earnings news from S&P 500 companies today for the first time in a week.

Best Buy (NYSE:BBY) just reported strong results and is up sharply by more than 8 percent. Kroger (NYSE:KR) will also report this morning, and Pall (NYSE:PLL) is scheduled to issue earnings results after hours.

Disclosure: No positions