Futures Flat Ahead Of Earnings

U.S. equity futures were relatively unchanged ahead of a busy day for earnings. Markets are now entering the heart of earnings season, a busy but exciting time.

Top News
In other news around the markets:

• Marathon Petroleum (MPC) announced after the lose Monday that is sees a $0.12 per share charge this quarter and forecasts EPS between $1.75-1.85, which may not compare with the street consensus of $2.64.
• The German ZEW Economic Sentiment Index came in below estimates showing that German economists are less optimistic than expected on the economy. The index printed 36.3, worse than the expected 39.6 and marking a declined from last month's 38.5.
• The Asian Development Bank, an eastern think tank, cut its 2013 China GDP growth forecast to 7.7 percent from 8.2 percent and sees 2014 growth of 7.5 percent.
• S&P 500 futures fell 0.2 points to 1,677.30.
• The EUR/USD was higher at 1.3084.
• Spanish 10-year government bond yields fell 1 basis point to 4.72 percent.
• Italian 10-year government bond yields fell 1 basis point to 4.46 percent.
• Gold was flat at $1,283.50 per ounce.

Asian shares were mostly higher overnight on some positive comments from Finance Minister Amari in Japan and continued sentiment that China's GDP figures were not that bad. The Japanese Nikkei 225 Index rose 0.64 percent and the Topix Index gained 0.71 percent. In Hong Kong, the Hang Seng Index rose 0.04 percent while the Shanghai Composite Index rose 0.31 percent in China. Also, the Korean Kospi fell 0.47 percent and Australian shares rose 0.1 percent.

European Markets
European shares were mixed following the weak ZEW report. The Spanish Ibex Index fell 0.76 percent and the Italian FTSE MIB Index declined 0.2 percent. Meanwhile, the German DAX fell 0.37 percent and the French CAC 40 Index declined 0.42 percent while U.K. shares rose 0.13 percent.

Commodities
Commodities were mixed as energy futures rose due to the U.S. heat wave while metals slipped. WTI Crude futures gained 0.1 percent to $106.43 per barrel and Brent Crude futures rose 0.17 percent to $109.27 per barrel. Copper futures rose 0.16 percent to $314.95 per pound. Gold was flat and silver futures declined 0.17 percent to $19.81 per ounce.

Currencies
Currency markets were on the move overnight as the Australian dollar saw large gains following positive comments in the RBA minutes. The EUR/USD was higher at 1.3084 and the dollar fell against the yen to 99.63. Overall, the Dollar Index fell 0.04 percent on weakness against the yen, the pound, the euro, and the Swiss franc. Notably, the Australian dollar rose 1.2 percent against the green back overnight.

Earnings Reported Yesterday
Key companies that reported earnings Monday include:

• Citigroup (C) reported second quarter EPS of $1.25 vs. $1.18 expected on revenue of $20.5 billion vs. $19.79 billion expected.
• Cintas (CTAS) reported fourth quarter EPS of $0.69 vs. $0.70 expected on revenue of $1.13 billion, in line. The company also issued weak full year EPS guidance.
• Brown and Brown (BRO) reported second quarter EPS of $0.36 vs. $0.35 expected on revenue of $325.8 million vs. $318.3 million expected.

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Stocks moving in the pre-market included:

• Marathon Petroleum Corp. (MPC) shares declined 3.15 percent on the guidance cut.
• NQ Mobile (NQ) shares rose 8.89 percent pre-market as the company boosted revenue guidance above analyst forecasts.
• Koppers Holdings (KOP) shares declined 6.26 percent pre-market as the company now sees EPS for the second quarter between $0.66-0.70 vs. $0.90 forecast and also lower than the prior guidance of $1.00.
• Berry Plastics (BERY) shares fell 3.64 percent pre-market as the company announced a 15 million share secondary offering after the close and also issued some guidance for sales that was slightly weaker than forecast.

Notable companies expected to report earnings Tuesday include:

• Johnson and Johnson (JNJ) is expected to report second quarter EPS of $1.39 vs. $1.30 a year ago on revenue of $17.71 billion vs. $16.48 billion a year ago.
• Coca Cola (KO) is expected to report second quarter EPS of $0.63 vs. $0.61 a year ago on revenue of $12.97 billion vs. $13.08 billion a year ago.
• Goldman Sachs (GS) is expected to report second quarter EPS of $2.82 vs. $1.78 a year ago on revenue of $7.98 billion vs. $6.63 billion a year ago.
• Omnicom (OMC) is expected to report second quarter EPS of $1.09 on revenue of $3.66 billion vs. $3.56 billion a year ago.
• CSX (CSX) is expected to report second quarter EPS of $0.47 vs. $0.49 a year ago on revenue of $3.02 billion vs. $3.01 billion a year ago.
• Mosaic (MOS) is expected to report fourth quarter EPS of $1.15 vs. $1.26 a year ago on revenue of $2.54 billion.
• Charles Schwab (SCHW) is expected to report second quarter EPS of $0.19 vs. $0.20 a year ago on revenue of $1.32 billion vs. $1.28 billion a year ago.
• Yahoo! (YHOO) is expected to report second quarter EPS of $0.30 vs. $0.27 on revenue of $1.08 billion, flat from a year ago.

On the economics calendar Tuesday, CPI and the weekly Redbook are due out followed by TIC flows, industrial productions, and the NAHB Housing Market Index. Also, Fed President Esther George speaks. Overnight, the British employment report and the minutes of the previous meeting of the Bank of England are due out.

BY Matthew Kanterman