Every morning we put out a report with the latest news on global stock markets, company news, and economic news. In focus today, NWSA, JPM, GS, MS, VE, BAC, BBVA
Morning Market Update
- US: Dow Futures: 12470.00 (-0.66%), S&P 500 Futures: 1318.60 (-0.52%), NASDAQ Futures: 2547.75 (-0.39%)
- Europe: CAC: 3048.27 (-0.49%), DAX: 6141.96 (-1.42%), FTSE: 5466.82 (-1.04%).
- Asia-Pacific: Australia: 4044.80 (0.04%), China: 2195.84 (-0.96%), Hong Kong: 19025.27 (-0.80%), India: 5149.15 (0.14%), Japan: 8874.11 (1.62%).
- Metals: Gold: 1571.00 (-0.47%), Silver: 26.86 (-0.32%), Copper: 3.34 (-0.28%)
- Energy: Crude Oil: 80.64 (0.54%), Natural Gas: 2.77 (-0.86%)
- Commodities: Corn: 6.36 (1.76%), Soya Bean: 14.17 (0.16%), Wheat: 7.66 (0.68%)
- Currency: EUR/USD: 1.2428 (-0.33%), GBP/USD: 1.5528 (-0.26%), USD/JPY: 79.4400 (-0.35%)
- 10 year US Treasury: 1.584% (-0.032)
Financial and Economic News Update
U.S. stock-index futures slip: U.S. stock index futures are pointing to a lower open on Thursday after a muted report from the labor market, and ahead of the key two-day EU summit. Labor Department figures showed that jobless claims fell by 6,000 to 386,000 in the week ended June 23, in line with what economists were expecting. A separate report from the Commerce Department showed that the U.S. economy grew 1.9 percent in the first quarter. The Dow futures, the S&P futures and the NASDAQ future are all trading around half a percent lower.
European markets trading in the red: European markets are trading in the red, with the German DAX (INDEXDB:DAX) trading 1.4 percent lower at 6141.96, the FTSE 100 (INDEXFTSE:UKX) down 1 percent at 5466.82, and the CAC 40 (INDEXEURO:PX1) sliding 0.5 percent to 3048.27. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading down 0.9 percent.
Asian markets end mixed: Asian markets closed mixed on Thursday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rising 1.7 percent to record its highest close in six weeks. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.8 percent at 19,025.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) dropped 1 percent to 2,195.8 points. The S&P/ASX 200 (INDEXASX:XJO) index rose 1.6 points to 4,044.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.09 percent to 16,952.91 points.
Stocks in Focus
- JPMorgan Chase & Co. (NYSE:JPM) slid 3.6 percent in pre-market trading after the New York Times reported that losses from the bank’s derivatives trades may total $9 billion; far higher than the initial estimates of about $2 billion.
- The board of Rupert Murdoch’s News Corp (NASDAQ:NWSA) has approved a split of the $60 billion media conglomerate into separate publicly traded entertainment and publishing companies.
- Big banks are expected to be in focus today, after analysts at Citigroup slashed the second quarter earnings estimates and price targets for Bank of America Corp (NYSE:BAC), Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JM), and Morgan Stanley (NYSE:MS).
- Discount retailer Family Dollar Stores, Inc. (NYSE:FDO) reported third quarter profit of $1.06 per share, one cent below estimates. Sales stood at $2.36 billion that also trailed estimates.
- American Greetings Corporation (NYSE:AM), the world’s largest publicly traded greeting card company, said first-quarter profit fell to $7.25 million or $0.20 a share, from $32.59 million or $0.78 a share in the prior-year quarter. Total revenue was down to $393.11 million from $403.7 million in the same period last year.
- Comcast Corporation (NASDAQ:CMCSA) has agreed to settle charges with the US Federal Communications Commission for violating conditions attached to cable giant’s merger with NBC Universal.
- Global management consulting firm Accenture Plc (NYSE:ACN) has been awarded a $359 million contract by the State of California to develop a statewide health-insurance exchange, the California Healthcare Enrollment, Eligibility and Retention System.
- Oriental Financial Group Inc. (NYSE:OFG) has agreed to buy the Puerto Rico operations of Spain’s Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) for $500 million in cash.
- Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) is expected to benefit from the news that US Food and Drug Administration has granted a priority review for Bayer AG‘s colon cancer drug regorafenib. Onyx has marketing rights for the drug in the U.S.
- Payroll and human resources provider Paychex, Inc. (NASDAQ:PAYX) posted fourth-quarter net income of $123.3 million, or 34 cents per, in line with analysts’ estimates. Revenue jumped 5.5 percent to $551.5 million, but missed consensus Street estimates.
- Office furniture maker Herman Miller, Inc. (NASDAQ:MLHR) posted fourth quarter earnings, excluding one time items, of 28 cents per share that was below the average analysts’ estimate of 32 cents per share. Total revenue fell to $420.7 million that also trailed expectations.
- Scott Young, chief merchandise officer of electronics retailer, RadioShack Corporation (NYSE:RSH), has resigned from the company.
- Audio and infotainment equipment company Harman International Industries Inc./DE/ (NYSE:HAR) has doubled its annual cash dividend to 60 cents per share.
- Anglo-Dutch oil major Royal Dutch Shell plc (NYSE:RDS.A) has extended the deadline of its 1.1 billion pounds ($1.7 billion) bid for Cove Energy PLC (LON:COVE) to July 11.
- French waste and water utility Veolia Environnement Ve SA (NYSE:VE) has agreed to sell its U.K. water business to Rift Acquisitions Limited for 1.2 billion pounds ($1.9 billion). Rift Acquisitions Limited is a venture formed by Prudential PLC’s Infracapital Partners and Morgan Stanley Infrastructure Partners.
- Bayer AG (ETR:BAYN) said the US Food and Drug Administration has granted a priority review for it’s colon cancer drug regorafenib, under which the review of the medicine will be completed in six months instead of the usual ten to twelve months.
- European plane maker Airbus, a subsidiary of EADS NV (EPA:EAD), is reportedly planning to open its first assembly line in the United States.
- Glencore International Plc (LON:GLEN) is willing to withdraw from its $58 billion merger with Xstrata PLC (LON:XTA), if Qatar Holdings, Xstrata’s second-largest shareholder, does not drop its demands for a much higher bid, the Financial Times reported.
- Germany’s second-largest lender Commerzbank AG (ETR:CBK) said it placed around 128.3 million newly issued shares with institutional investors at a price of 1.27 euro a share.
- Vodafone Group Plc (ADR) (NASDAQ:VOD) has named Philipp Humm, who yesterday quit the top job at T-Mobile USA, as Chief Executive, Northern & Central Europe, while Paolo Bertoluzzo was appointed as head of its southern European business.
- Debenhams Plc (LON:DEB), the U.K.’s second-largest department-store chain, posted strong sales growth for the 16 weeks ended June 23, but margins were hit due to sales promotions.
- British betting shop operator Ladbrokes PLC (LON:LAD), slumped 11 percent in London trading after saying a decline in digital profits in the first half of the year will be worse than previously forecast.
- British lender HSBC Holdings plc (ADR) (NYSE:HBC) has offloaded its entire stake in India’s Axis Bank Ltd. (NSE:AXISBANK) and Yes Bank Limited (NSE:YESBANK), and raised about $425 million, Reuters reported.
- Sony Corporation (ADR) (NYSE:SNE) has agreed to sell its chemical products business to the government-backed Development Bank of Japan for about 58 billion yen ($727 million).
- Japanese drugmaker Eisai Co., Ltd (TYO:4523) jumped 3.1 percent in Tokyo after Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) received approval from the U.S. Food and Drug Administration for its new weight-loss pill Belviq. Eisai has exclusive marketing rights of the anti-obesity drug in the United States.
- Japanese retailers, The Daiei, Inc. (TYO:8263), SHIMAMURA Co., Ltd. (TYO:8227), and EDION Corporation (TYO:2730), closed significantly higher, after Japan’s retail sales increased more than forecast in May.
- Australian oil and gas major Santos Limited (ASX:STO) has hiked the estimated cost of its Gladstone