Morning Market Update
- US: Dow Futures: 12511.00 (0.66%), S&P 500 Futures: 1322.50 (0.56%), NASDAQ Futures: 2540.75 (0.66%)
- Europe: CAC: 3066.89 (0.79%), DAX: 6382.76 (0.93%), FTSE: 5378.11 (0.40%).
- Asia-Pacific: Australia: 4114.40 (1.14%), China: 2389.64 (1.18%), Hong Kong: 19055.46 (1.34%), India: 4990.10 (0.09%), Japan: 8657.08 (0.74%).
- Metals: Gold: 1574.40 (0.09%), Silver: 28.29 (-0.32%), Copper: 3.48 (0.33%)
- Energy: Crude Oil: 91.17 (0.34%), Natural Gas: 2.57 (-2.06%)
- Commodities: Corn: 5.78 (-0.56%), Soya Bean: 12.98 (1.02%), Wheat: 6.71 (1.50%)
- Currency: EUR/USD: 1.2526 (0.12%), GBP/USD: 1.5662 (0.14%), USD/JPY: 79.5550 (0.11%)
- 10 year US Treasury: 1.724% (-0.014)
Financial and Economic News Update
U.S. stock-index futures climb: U.S. stock index futures are pointing to a higher open on Tuesday after trading resumes following an extended week-end. The Standard & Poor’s/Case-Shiller home price index showed that prices were up in March in 12 of the 20 cities it tracks. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading about 0.5 percent higher.
European markets in the green: European markets are up in trade today, with the German DAX (INDEXDB:DAX) trading 0.9 percent higher at 6382.76, the FTSE 100 (INDEXFTSE:UKX) up 0.4 percent at 5378.11, and the CAC 40 (INDEXEURO:PX1) gaining 0.8 percent to 3066.89. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.03 percent higher.
Asian markets end higher: Asian markets closed higher on Tuesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) reversing earlier losses to close 0.7 percent higher at 8,657.08. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed 1.4 percent higher, the best single day gain this month, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) was up 1.2 percent at 2,389.6 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped 1.2 percent to end at 4,114.4. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.1 percent at 16,427 points.
Company News Update
- Bill Ackman, who’s Pershing Square is the largest shareholder of J.C. Penney Company, Inc. (NYSE:JCP) said that recently reported first quarter sales slump should be a bottom, and that Chief Executive Ron Johnson was on the right track to revamp the retailer.
- JPMorgan Chase & Co. (NYSE:JPM) has sold an estimated $ 25 billion of profitable securities in an effort to offset the recently reported $2 billion trading loss.
- The U.S. Justice Department is investigating whether BP plc (NYSE:BP) officials lied to Congress about how much oil was leaking after the 2010 Deepwater Horizon accident.
- Ailing BlackBerry maker Research in Motion Limited (USA) (NASDAQ:RIMM) may cut at least 2,000 jobs worldwide as part of a global restructuring plan, according to the Toronto Globe and Mail.
- The board of discount retailer Dollar Tree, Inc. (NASDAQ:DLTR) has announced a two-for-one stock split in the form of a 100 percent common stock dividend, payable June 26 to shareholders of record as of June 12.
- Interline Brands Inc (NYSE:IBI), the maker of maintenance and repair products, has agreed to be acquired by GS Capital Partners and P2 Capital Partners for $25.50 per share in cash, or about $1.1 billion. Interline closed Friday at $17.94, and soared 41 percent in early pre-market trading.
- Coal company Peabody Energy Corporation (NYSE:BTU) has been upgraded to “buy” from “neutral” at Goldman Sachs, citing leverage to rising thermal prices.
- Anglo-Dutch oil major Royal Dutch Shell plc (ADR) NYSE:RDS.A) is planning to sell-off its Orion thermal oil sands project near Cold Lake, Alberta, six years after acquiring it as part of a 2.4 billion Canadian dollar ($2.3 billion) acquisition of Blackrock Ventures.
- Just days after raising $16 billion through an initial public offering, Facebook Inc (NASDAQ:FB) may acquire Norwegian browser maker Opera Software ASA, U.K.-based technology website Pocket-Lint reported.
- Spain’s biggest oil company Repsol YPF SA (MCE:REP) will cut its dividend payout ratio to conserve cash, and increase production outside Argentina, after the nationalization of its YPF SA (ADR) (NYSE:YPF) unit.
- Wolseley plc (LON:WOS), the world’s largest supplier of heating and plumbing products, reported a 2.3 percent drop in third quarter revenue to 3.2 billion pounds ($5 billion) from 3.27 billion pounds in the year-ago period.
- Rexel SA (EPA:RXL), the world’s largest distributor of electrical equipment, reiterated its guidance for the year, despite a “challenging environment.”
- ArcelorMittal (ADR) (NYSE:MT) was upgraded to “overweight” from “neutral” at HSBC.
- Japan’s biggest agricultural trading company Marubeni Corporation (TYO:8002) has agreed to buy U.S. grains merchant, The Gavilon Group, LLC for $3.6 billion excluding debt, making the Japanese trading house one of the world’s biggest grain dealer.
- JPMorgan Chase & Co. (NYSE:JPM) has beefed up its presence in China by injecting an additional 2.5 billion yuan ($394 million) into its China banking subsidiary, as part of a move to fuel expansion in the world’s second biggest economy.
- Japanese consumer electronics giant Panasonic Corporation (ADR) (NYSE:PC) is planning to halve the number of workers at its headquarters in Osaka through early retirement and internal transfers in an effort to reduce costs and streamline the organization, the Nikkei business daily reported.
- South Korean consumer electronics and mobile device manufacturer LG Display Co Ltd. (ADR) (NYSE:LPL) has unveiled the world’s first, full high-definition LCD panel for smart phone displays that is likely to directly compete with Apple Inc. (NASDAQ:AAPL)’s Retina display for market share.
- Struggling Japanese semiconductor maker Renesas Electronics Corporation (TYO:6723) will outsource some high-end chip production to Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) as it battles high costs and dwindling capital.
- Shanghai-based property developer Shui On Land Limited (HKG:0272), controlled by billionaire Vincent Lo, is planning to list its Chinese shopping and commercial development business, Xintiandi, in a $1 billion Hong Kong initial public offering in the second half of the year.
Economic Calendar for Tuesday, May 29, 2012:
09:00 A.M. ET: S&P/Case-Shiller Home Price Indices (YoY) (March)
10:00 A.M. ET: Consumer Confidence (May)
10:00 A.M. ET: State Street Investor Confidence Index (May)
10:30 A.M. ET: Dallas Fed Mfg Survey (May)
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