Every morning ValueWalk puts out a news report with the latest news in global stock markets, company news, and global economic news.
Morning Market Update
Market Levels
- US: Dow Futures: 12840.00 (0.35%), S&P 500 Futures: 1359.30 (0.61%), NASDAQ Futures: 2630.75 (0.44%)
- Europe: CAC: 3128.50 (0.31%), DAX: 6527.39 (0.80%), FTSE: 5542.30 (0.22%).
- Asia-Pacific: Australia: 4295.60 (0.48%), China: 2410.23 (0.07%), Hong Kong: 20227.28 (-0.51%), India: 4965.70 (-0.18%), Japan: 9009.65 (-0.39%).
- Metals: Gold: 1592.70 (-0.09%), Silver: 29.26 (0.05%), Copper: 3.69 (0.77%)
- Energy: Crude Oil: 97.11 (0.31%), Natural Gas: 2.46 (-0.04%)
- Commodities: Corn: 6.10 (0.49%), Soya Bean: 13.48 (1.14%), Wheat: 6.03 (-0.50%)
- Currency: EUR/USD: 1.2963 (0.26%), GBP/USD: 1.6178 (0.31%), USD/JPY: 79.8600 (0.26%)
- 10 year US Treasury: 1.893% (0.070)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Thursday with the Dow Jones industrial average, the S&P 500 and the NASDAQ futures all trading close to half a percent higher.
Claims for U.S. unemployment benefits fell last week: The Labor Department said initial claims for U.S. unemployment benefits fell last week to a seasonally adjusted 367,000, which was below the 369,000 that economists had forecast.
U.S. trade deficit widens: U.S. trade deficit grew 14 percent to $51.8 billion in March, the Commerce Department said, higher than economists’ estimates of a gap of $50 billion.
European markets rise: European markets are trading higher after two sessions in the red, with the German DAX (INDEXDB:DAX) jumping 0.8 percent higher at 6527.39, the FTSE 100 (INDEXFTSE:UKX) up 0.2 percent at 5542.30, and the CAC 40 (INDEXEURO:PX1) gaining 0.3 percent to 3128.50. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.1 percent higher.
Asian markets end lower: Asian markets closed lower on Thursday as investor concerns grew following a weaker than expected Chinese trade data. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) slid 0.4 percent to at 9,009.65. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.51 percent at 20,227.28, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended the day flat. The S&P/ASX 200 (INDEXASX:XJO) index rose 0.5 percent to 4,295.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.3 percent to 16,435.17 points.
Company News Update
U.S.
- Department-store chain Kohl’s Corporation (NYSE:KSS), reported first quarter results that beat analyst estimates, but forecast second quarter earnings that was below current projections.
- Beauty products maker Coty has raised its offer for Avon Products, Inc. (NYSE:AVP) by 6.5 percent to $24.75 a share.
- Sun Trust Banks, Inc. (NYSE:STI) is in talks to sell its asset management unit RidgeWorth Investments, just two years after the company unsuccessfully tried to sell the unit.
- MEMC Electronic Materials, Inc. (NYSE:WFR), the country’s second largest polysilicon maker posted first quarter adjusted net loss of $59.4 million or $0.26 per share, much higher than what analysts were expecting, as sales and prices fell.
- Silicon Graphics International Corp (NASDAQ:SGI), the maker of computer servers, reported a narrower than expected fiscal third quarter loss, but lowered its full-year outlook.
- Acadia Healthcare Company Inc (NASDAQ:ACHC) launched a follow-on offering of more than 8.2 million common shares, proceeds from which will be used to help fund its acquisition strategy.
- The board of Usana Health Sciences, Inc. (NYSE:USNA) has authorized an increase in its share repurchase program from $28 million to $50 million.
Europe
- World’s largest steel producer ArcelorMittal (ADR) (NYSE:MT) posted first quarter profit that beat estimates, and forecast higher profit for the second quarter, as strong US sales offset declining revenue from mining and weaker European demand.
- UniCredit SpA (UCG), Italy’s biggest bank, reported first quarter net income climbed of 914 million euros ($1.18 billion), better than the average analysts’ estimate of 832 million euros.
- Telecom Italia S.p.A (ADR) (NYSE:TI), Italy’s largest phone company, posted first quarter profit that beat analyst estimates, helped by growth in Latin America.
- Germany’s second-biggest utility RWE AG (FRA:RWE) said first quarter profit dropped 20 percent due mainly to Chancellor Angela Merkel’s decision to halt all of the country’s nuclear reactors.
- German telecommunications giant Deutsche Telekom AG (FRA:DTE) reported earnings that beat analysts’ estimates, led by a better than expected performance by its large US mobile business
- Danske Bank, Denmark’s largest lender, said first quarter net income rose 10 percent amid higher income from lending and reduced costs.
- Repsol YPF SA (MCE:REP), Spain’s biggest oil company, reported first quarter earnings that topped analyst estimates as higher oil prices boosted income from its drilling and production operations.
Asia-Pacific
- Japanese consumer electronics giant Sony Corporation (NYSE:SNE) posted a record net loss of $5.74 billion last year, as television and PlayStation 3 sales declined, but expects to swing back to profit in the current fiscal year.
- Samsung Electronics Co., the world’s largest television maker by sales, said that it is aiming to launch televisions using organic light emitting diodes (OLED) during the second half of the year as it seeks to gain leadership in the next generation TV market.
- Dubai-based Emirates, the world’s largest airline by international traffic, its annual profit dropped 61 percent as fuel costs rose and growth in Europe slowed.
- News Corp (NASDAQ:NWS) posted a better than expected quarterly third quarter profit and the board approved another $5 billion in share buybacks.
- National Australia Bank Ltd. (ASX:NAB), the country’s top lender by assets, said first-half cash profit rose 4.8 per cent to a record 2.83 billion Australian dollars, in line with analyst estimates, boosted by higher trading and fee income and rising mortgage market share.
- Wilmar International Ltd., the world’s biggest palm-oil processor, posted first quarter net income that fell short of analysts’ expectations.
Economic Calendar for Thursday, May 10, 2012:
08:30 A.M. ET: International Trade (March)
08:30 A.M. ET: Initial Jobless Claims (Week ending Saturday, May 05, 2012)
08:30 A.M. ET: Continuing Jobless Claims (Week ending Saturday, April 28, 2012)
08:30 A.M. ET: Import and Export Prices (April)
09:30 A.M. ET: Ben Bernanke Speaks
09:45 A.M. ET: Bloomberg Consumer Comfort Index (Week ending Sunday, May 06)
10:30 A.M. ET: EIA Natural Gas Report (Week ending Friday, May 04, 2012)
02:00 P.M. ET: Treasury Budget (April)
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply
