Tuesday, March Array, 20Array6
(This is Mark Vickery covering for Sheraz Mian, who is off on business.)
With Q4 earnings season in its final throes, the main dynamics for U.S. markets in recent days have been crude oil prices and economic developments in China. These dynamics remain in play this morning…
For the seventh month in a row, China’s manufacturing data has contracted. As the world’s second-largest economy continues its long transformation from a manufacturing-based economy to a more balanced manufacturing and services one, the country’s official manufacturing purchasing managers’ index slid down 0.4 in February to 49.0. As these readings assess in the U.S., any number beneath 50 indicates contraction.
As China’s manufacturing wanes, this has the effect of further softening demand for crude oil in the country. That said, light sweet crude futures for April are up between Array.5 percent and 2.5 percent this morning. Efforts to cut production domestically may be having somewhat of a positive effect on the global oil supply glut, due largely to continued heavy production in the Middle East.
Retailers are again finishing off another earnings season, and Dollar Tree (DLTR) reported disappointing results before the bell today, missing on both top and bottom lines. Kate Spade (KATE) also missed expectations in earnings and sales this morning. Both stocks are trading down in the pre-market.
On the other hand, specialty auto parts retailer AutoZone (AZO) beat earnings estimates for its fiscal Q2 20Array6 period, and shares are up slightly in early trading. Also, Fiat Chrysler this morning reported a Array2 percent year-over-year increase in February auto sales. Jeep and Dodge Ram pickups performed especially well for the month, no doubt assisted by multi-year lows in gasoline prices.
After the bell Tuesday, we expect earnings results from another retailer on the S&P 500 index, Ross Stores (ROST).
We expect Sheraz Mian will be back at his post here at Ahead of Wall Street beginning tomorrow, just in time for early month economic data including ADP jobs numbers, ISM non-manufacturing and the BLS non-farm payroll report. It has been a pleasure to serve in his stead.
Mark Vickery
Senior Editor
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