Morning Market Update
* US: Dow Futures: 12932.00 (-0.21%), S&P 500 Futures: 1361.30 (-0.33%), NASDAQ Futures: 2627.50 (-0.34%)
* Europe: CAC: 3169.83 (-1.40%), DAX: 6538.82 (-0.47%), FTSE: 5648.69 (-0.11%).
* Asia-Pacific: Australia: 4314.30 (0.30%), China: 2448.88 (-0.12%), Hong Kong: 20484.75 (-0.25%), India: 4999.95 (-2.23%), Japan: 9181.65 (0.68%).
* Metals: Gold: 1616.10 (-1.40%), Silver: 29.56 (-1.87%), Copper: 3.70 (-2.03%)
* Energy: Crude Oil: 96.93 (-1.03%), Natural Gas: 2.30 (-1.67%)
* Commodities: Corn: 6.27 (-0.04%), Soya Bean: 13.54 (-1.03%), Wheat: 6.18 (0.70%)
* Currency: EUR/USD: 1.3005 (-0.35%), GBP/USD: 1.6137 (-0.33%), USD/JPY: 79.8800 (-0.04%)
* 10 year US Treasury: 1.856% (-0.019)
Financial and Economic News Update
U.S. stock-index futures trading lower:U.S. stock index futures are pointing to a lower open on Tuesday as investors continue to worry about Greece’s uncertain political environment. Mainstream conservative leaders are struggling to form a government in Greece, fueling investor concerns that the Mediterranean nation may default on its debt soon. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading about 0.3 percent lower.
European markets fall: European markets are trading lower amid political turmoil in Greece, with the German DAX (INDEXDB:DAX) trading 0.5 percent lower at 6538.82, the FTSE 100 (INDEXFTSE:UKX) down 0.1 percent at 5648.69, and the CAC 40 (INDEXEURO:PX1) slumping 1.4 percent to 3169.83. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1 percent lower.
Asian markets end mixed: Asian markets closed mixed on Tuesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rebounding from a three-month low, up 0.7 percent. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended down 0.3 percent to 20,484.8, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index), closed at 2,448.9 points, down 0.1 percent. The S&P/ASX 200 (INDEXASX:XJO) index gained 0.3 percent to 4,314.3. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 2.33 percent to 16,518.07 points
Company News Update
* McDonald’s Corporation (NYSE:MCD) said April same-restaurant sales in the U.S. rose 3.3 percent, below the analysts’ projection of a gain of around 5 percent.
* Satellite TV provider DirecTV (NASDAQ:DTV) said first quarter net income increased 8.5 percent to $731 million, or $1.07 a share, from $674 million, or 85 cents, a year earlier, topping analysts’ estimates.
* Rackspace Hosting, Inc. (NYSE:RAX), the provider of cloud computing services, reported first quarter profit of 17 cents a share that missed analysts’ estimate.
* Molson Coors Brewing Company (NYSE:TAP) posted first quarter earning excluding items of 47 cents per share, beating the analysts’ average estimate of 42 cents per share.
* Biopharmaceutical company Vivus, Inc. (NASDAQ:VVUS) reported a first quarter loss of $18.8 million or 20 cents a share, wider than the analyst estimate of a loss of 13 cents a share.
* First BanCorp (NYSE:FBP) posted first quarter net loss of $13.2 million or 6 cents per share, in line with street estimates. The private equity bank has entered into an agreement with FIA Card Services, N.A. to acquire a credit-card portfolio of about $400 million.
* Affymax, Inc. (NASDAQ:AFFY), the biopharmaceutical company based in Palo Alto, California, posted a first quarter profit of $31.5 million or 87 cents per share, exceeding the average analyst estimate of 49 cents per share.
* Medical device company Mako Surgical Corp. (NASDAQ:MAKO) posted reported a wider-than-expected first-quarter loss, and cut its full year outlook for a key product.
* Penn National Gaming, Inc (NASDAQ:PENN) has agreed to acquire Harrah’s St. Louis gaming and lodging facility from Caesars Entertainment Corp (NASDAQ:CZR) for $610 million in cash.
* The board of Palm Beach-based real estate investment trust Chatham Lodging Trust (NYSE:CLDT) approved a 14 percent increase in quarterly dividend to 20 cents a share.
* The Walt Disney Company (NYSE:DIS) will report earnings after the closing bell.
* Europe’s biggest bank HSBC Holdings plc (LON:HSBA) (NYSE:HBC) reported a 26 percent increase in first quarter pretax profit to $6.8 billion from $5.4 billion in the year-earlier period, topping analysts’ estimates, helped by strong growth in emerging markets and higher income at its investment banking division.
* British insurance group Aviva plc (LON:AV) (NYSE:AV) said chief executive officer Andrew Moss will step down with immediate effect.
* Adecco, the world’s largest staffing company, reported first quarter net income of 112 million euros ($146.15 million), beating the average analyst forecast of 100 million euros.
* Mexican telecommunications heavyweight America Movil SAB de CV (ADR) (NYSE:AMX), owned by the world’s richest man, Carlos Slim, is planning to raise its stake in Dutch telecommunications operator Koninklijke KPN NV. America Movil will offer 8 euros ($10.44) per share in cash to raise its stake in the company to as much as 28 percent from the current 4.8 percent.
* Norwegian oil giant Statoil ASA(ADR) (NYSE:STO) reported record first quarter earnings on robust production figures well above analyst forecasts and kept its 2012 production guidance.
* Japan’s largest trading house Mitsubishi Corp (TYO:8058) forecast a net income of 500 billion yen for the current fiscal year to March 2013, topping the average analysts’ estimate of 479.1 billion yen.
* Marubeni Corporation (TYO:8002), Japan’s biggest grain trading company, is in the final stages of talks to buy closely held U.S. grain and energy trader Gavilon Group LLC for about $5.2 billion, including debt.
* General Electric Company (NYSE:GE) will acquire a 15 percent stake in China Xd Electric Co., Ltd. (SHA:601179), one of China’s largest electrical-equipment maker for about 3.38 billion yuan ($536 million), providing the largest U.S. conglomerate an opportunity to tap into the country’s rapidly expanding market for electric transmission and distribution.
* Wynn Macau Ltd (HKG:1128), the Macau casino unit founded by billionaire, Steve Wynn, has reported a 10 percent rise in first quarter profit due to higher than expected number of visitors from mainland China to the gambling hub.
* Iluka Resources Limited (ASX:ILU), the world’s largest producer of zircon cut its 2012 production forecast for the mineral because of softer than expected demand.
Economic Calendar for Tuesday, May 08, 2012:
07:30 A.M. ET: NFIB Small Business Optimism Index (April)
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, May 05, 2012)
08:55 A.M. ET: Redbook (Week ending Saturday, May 05, 2012)
09:45 A.M. ET: Richmond Federal Reserve Bank President Jeffrey Lacker speaks.
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (May)
11:30 A.M. ET: 4-Week Bill Auction
11:30 A.M. ET: 3-Yr Note Auction
01:45 P.M. ET: Dallas Federal Reserve President Richard Fisher speaks.