Market Morning Update For: 2 March 2012
- US: Dow Futures: 12950.00 (-0.18%), S&P 500 Futures: 1370.70 (-0.28%), NASDAQ Futures: 2634.00 (0.42%)
- Europe: CAC: 3502.02 (0.07%), DAX: 6936.51 (-0.08%), FTSE: 5919.50 (-0.20%).
- Asia-Pacific:Australia: 4273.10 (0.41%),China: 2460.69 (1.40%),Hong Kong: 21562.26 (0.81%),India: 5359.35 (0.37%),Japan: 9777.03 (0.71%)
- Metals: Gold: 1710.10 (-0.70%), Silver: 34.99 (-1.88%), Copper: 3.92 (-0.34%)
- Energy: Crude Oil: 108.14 (-0.64%), Natural Gas: 2.49 (1.02%)
- Commodities: Corn: 6.50 (-0.53%), Soya Bean: 13.17 (0.36%), Wheat: 6.61 (-0.67%)
- Currency: EUR/USD: 1.3212 (-0.74%), GBP/USD: 1.5866 (-0.57%), USD/JPY: 81.5500 (0.53%)
- 10 year US Treasury: 2.000% (-0.026)
Market News Update
Wall Street poised to fall: As of7:40 a.m. ET, Dow Jones Industrial Average futures fell 35 points to 12936, S&P 500 futures dipped 5.5 points to 1369 and NASDAQ 100 futures slid 8.3 points to 2635. The technology-heavy NASDAQ has had an even stronger performance than the S&P 500 so far this year, rallying 14.7% to its highest value since the December 2000.
European shares fall: European shares turned negative and safehaven German bonds extended gains on Friday, after Spain signaled it will aim for a higher deficit this year than previously agreed with the European Union. The FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,085.86 points. http://www.cnbc.com/id/46600203
Asia markets end higher: Asian shares closed higher on Friday, as a fresh liquidity injection by the European Central Bank began to trickle into the territory's market, but gains on the day may not reverse weekly losses. The benchmark Nikkei gained 0.7 percent to 9,777.03. The Shanghai Composite Index closed at 2,460.7 points, a 3-1/2-month high, after falling 0.1 percent, while the Hang Seng Index ended up 0.81 percent at 21,562.26.
Dollar extends gain: The dollar extended its overnight gains in European trading Friday and hit a nine-month high against the yen as currency dealers adjusted their bets, while worries about a possible oil-supply shock lent some support to the buck. The dollar rose to as high as ¥81.71 against the yen after data confirmed that the country was still mired in deflation. http://online.wsj.com/article/SB10001424052970203753704577256991830257290.html?mod=WSJ_markets_liveupdate
Oil falls: Oil fell inNew York and headed for the first weekly decline in four afterSaudi Arabia denied a reported pipeline explosion in its Eastern province. Futures slid as much as 1.1 percent after climbing to the highest price in 10 months yesterday. There was no sabotage at oil facilities in the Qatif area, according to Major General Mansour Al-Turki, a spokesman for the Saudi Arabian Interior Ministry. Prices rose above $110 a barrel for the first time since May afterIran’s Press TV said an explosion hit pipelines in the area, home toSaudi Arabia’s largest refinery.
Company News Update
- Facebook plans to increase its $2.5 billion credit line to help cover a major tax hit when employee stock awards vest shortly after it goes public, according to two sources familiar with the company's plans.
- Yelp Inc (YELP) priced its initial public offering of class A common stock at $15 a share, above the expected price range, valuing the U.S. consumer review website at nearly $900 million.
- Boeing Co (BA) said on Thursday that Kazakhstan's Air Astana has ordered three fuel-efficient 787 Dreamliners and four extended-range 767s in a deal valued at $1.3 billion at current list prices.
- Eastman Kodak Co, which filed for bankruptcy protection in January, said it agreed to sell its on-line photo services business to "stalking horse" bidder Shutterfly Inc for $23.8 million.
- Alaska Communications Systems Group Inc. (ALSK), the Anchorage, Alaska-based telephone company reported fourth- quarter earnings of 5 cents a share, beating the average analyst estimate of 4 cents.
- Ascena Retail Group Inc. (ASNA), the women’s apparel retailer forecast profit this year of at least $2.75 a share, above the average analyst estimate of $2.67.
- Esterline Technologies Corp. (ESL), the aerospace and defense parts supplier, raised its forecast for 2012 earnings to between $5.10 and $5.40 a share, from $5 to $5.30 previously.
- Flow International Corp. (FLOW), the maker of industrial water jets used for cutting and cleaning, reported third-quarter earnings of 7 cents a share, beating the 5-cent average of two analyst estimates.
- BASF SE (BAS), the world’s biggest chemical maker, is considering opening an investment office in Beijing orShanghai in the medium term asChina begins to spawn its own technology startups.
- Barclays (BARC) Plc, the U.K.’s third- largest lender by assets, took 8.2 billion euros ($10.9 billion) of three-year loans from the European Central Bank to provide “funding stability” for its units in Spain andPortugal.
- Anheuser-Busch InBev NV (ABI.BR), the world's biggest brewer, and two Chinese brewers are on the shortlist to buy most of the operations being sold by China's Kingway Brewery Holdings Ltd (0124.HK), sources with direct knowledge of the matter said.
- GKN Plc (GKN), a British maker of aircraft components for Airbus SAS, is the frontrunner to purchase Volvo AB’s (VOLVB) aircraft-engine unit after MTU Aero Engines Holding AG (MTX) dropped out of the sale process, people with knowledge of the situation said.
- ZTE Corp. (000063), China’s second-biggest maker of phone equipment, wants to become one of the world’s top three makers of network infrastructure in three years, said Xu Ming, the company’s vice president of wireless products.
- India fell just short of its target in a chaotic $2.5 billion auction of shares in Oil and Natural Gas Corp (ONGC), getting off to a faltering start in its bid to revive government stake sales to patch its widening fiscal deficit. The country's two main stock exchanges said late on Thursday that investors bid for 98 percent of the shares on offer, dashing expectations that it would all be snapped up.
Economic Calendar for Friday, March 02, 2012:
09:40 A.M. ET: Chicago Federal Reserve President Charles Evans Speaks
08:00 P.M. ET: St. Louis Federal Reserve Bank President James Bullard speaks to the BMO Bank of Montreal Lecture in Economics on "The U.S. economy in the Aftermath of the Financial Crisis" in Vancouver.