- US: Dow Futures: 12873.00 (-0.81%), S&P 500 Futures: 1374.70 (-1.11%), NASDAQ Futures: 2726.00 (-1.01%)
- Europe: CAC: 3319.81 (0.19%), DAX: 6775.26 (-0.13%), FTSE: 5723.67 (0.35%).
- Asia-Pacific: Australia: 4319.80 (0.00%), China: 2285.78 (-0.91%), Hong Kong: 20593.00 (0.00%), India: 5234.40 (-1.66%), Japan: 9546.26 (-1.49%).
- Metals: Gold: 1641.70 (0.71%), Silver: 31.65 (-0.25%), Copper: 3.74 (-1.33%)
- Energy: Crude Oil: 101.76 (-1.50%), Natural Gas: 2.08 (-0.62%)
- Commodities: Corn: 6.58 (0.04%), Soya Bean: 14.33 (-0.03%), Wheat: 6.40 (0.27%)
- Currency: EUR/USD: 1.3071 (-0.21%), GBP/USD: 1.5859 (-0.11%), USD/JPY: 81.3900 (-0.31%)
- 10 year US Treasury: 2.030% (-0.151)
Market and Economy News Update
U.S. stock-index futures point to a lower open: U.S. markets are poised to open lower on Monday, as data on job creation in the world’s biggest economy, released on Good Friday, fell well below economists’ estimates. The Dow, S&P 500 and Nasdaq futures were trading close to a percent lower.
U.S. hiring slows: The Labor Department said on Friday, employers added 120,000 jobs in March, less than half the average monthly increase in the prior three months, and well short of the 210,000 economists were expecting. However, the unemployment rate fell to a three-year low of 8.2 percent. http://www.valuewalk.com/2012/04/120k-new-jobs-added-in-march-unemployment-at-8-2/
European markets closed: European markets are closed on Monday for the Easter holiday.
Asian markets finish lower: Asian markets fell on Monday after China’s inflation accelerated in March, while a sharp slowdown in U.S. jobs growth also raised concerns about the pace of recovery in the world’s biggest economy. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) fell 1.5 percent, sending the index to its longest losing streak since November. The Shanghai Composite Index (SHA:000001) fell 0.9 percent, as a faster-than-expected growth in consumer prices, diminished the prospect of government easing monetary policy to bolster economic growth. Stock markets in Hong Kong and Australia were closed for public holidays.
China’s inflation rises more than forecast: China’s National Bureau of Statistics (NBS) said today, inflation accelerated more than forecast in March, as higher fuel and food costs pushed up consumer prices. Consumer prices rose 3.6 percent in March from a year earlier, up from 3.2 percent in February. Analysts had estimated an increase of 3.3 percent.
Company News Update
- AOL, Inc. (NYSE:AOL) shares soared 34 percent in pre-market trading after it agreed to sell and license more than 800 patents to Microsoft Corporation (NASDAQ:MSFT) in a deal worth $1.06 billion.
- Avon Products, Inc. (NYSE:AVP) has named Sherilyn McCoy as its chief executive officer. McCoy was formerly the vice chairman of the executive committee at Johnson & Johnson (JNJ), where she worked for past three decades.
- Eli Lilly & Co. (NYSE:LLY), jumped 2.5 percent in New York pre-market trading, after the Food and Drug Administration cleared a test developed by the pharmaceutical firm that detects the presence of proteins in the brain that are related to Alzheimer’s disease.
- Bioscience company, Illumina, Inc. (NASDAQ:ILMN), said proxy-advisory firm, Institutional Shareholder Services, has determined that Switzerland-based drugmaker, Roche’s $6.7 billion bid undervalues the company and is inadequate. Illumina was trading 1.3 percent higher.
- AZZ Incorporated (NYSE:AZZ), the maker of electrical components, reported fourth-quarter revenue of $123.6 million, which was better than the average analyst estimate of $122.7 million.
- Office Depot Inc (NYSE:ODP), the second-largest U.S. office- supply chain, recalled 307,000 desk chairs in the U.S. and 12,000 in Canada, after receiving complaints of chairs breaking, that resulted in injuries.
- The Barron’s reported that Baltimore-based global asset management firm, Legg Mason, Inc. (NYSE:LM) is poised to benefit if interest rates move higher, which should help improve the performance of the firm’s money market portfolios,.
- Icahn Enterprises, L.P. (NASDAQ:IEP), owned by billionaire investor Carl Icahn, is an attractive investment for anyone who wants to participate in his takeover success over the long term, Barron’s reported on Saturday.
- Japan’s biggest consumer-electronics exporter, Sony Corporation (TYO:6758) (NYSE:SNE) rallied 0.6 percent, after the Nikkei reported that the company will cut 10,000 jobs worldwide.
- Japanese companies with sizeable exposure to the Chinese market were hit by the bigger than expected rise in Chinese inflation. Hitachi Construction Machinery Co., Ltd. (TYO:6305), that counts China as its biggest market, slid 2.3 percent in Tokyo trading. TDK Corporation (TYO:6762), a manufacturer of electronic parts which gets almost a third of its revenue from China, dropped 1.7 percent, while Komatsu Ltd. (TYO:6301), an excavator maker, declined 1.96 percent.
- Chinese property developers were among the biggest losers in Chinese trade, today. China Vanke Co., Ltd. (SHE:000002), the country’s largest real estate developer by sales, ended 1.9 percent lower, and Tieling Newcity Investment Holding Ltd (SHE:000809) plunged 8.7 percent. Poly Real Estate Group Co., Ltd (SHA:600048), China’s second- largest developer by market value, lost 0.5 percent.
- Asia’s second-largest smartphone maker, HTC Corp (TPE:2498), tumbled 6.8 percent in Taiwan, after it said net profit fell 70 percent in the first quarter, from a year earlier, amid stiff competition from Apple and Samsung.
- Reliance Industries Limited (NSE:RELIANCE), the largest publicly traded company in India by market capitalization, fell 0.7 percent in Mumbai, after brokerage firm Kotak cut its price-target on the stock to 800 rupees from 830 rupees, citing lower refining margins.
Economic Calendar for Monday, April 9, 2012:
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
07:15 P.M. ET: Federal Reserve Chairman Ben Bernanke speaks.