Every afternoon we provide an update on global market levels, economic news, and hedge fund news.
Post Market Update
Market Levels
- US: Dow: 12411.20 (-1.14%), S&P 500: 1308.93 (-1.26%), NASDAQ: 2809.73 (-1.70%)
- Europe: CAC: 3042.76 (-0.29%), DAX: 6141.05 (0.17%), FTSE: 5432.37 (-0.05%).
- Asia-Pacific: Australia: 4063.70 (-1.09%), China: 2305.86 (1.06%), Hong Kong: 18953.63 (2.38%), India: 5054.10 (-0.28%), Japan: 8624.90 (1.92%).
- Metals: Gold: 1596.80 (0.34%), Silver: 28.62 (0.51%), Copper: 3.34 (1.77%)
- Energy: Crude Oil: 82.70 (-1.66%), Natural Gas: 2.22 (-3.52%)
- Commodities: Corn: 5.92 (-1.00%), Soya Bean: 13.31 (-0.09%), Wheat: 6.30 (0.04%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2487 (0.16%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5490 (-0.18%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.4050 (-0.05%)
- 10 year US Treasury: 1.584% (-0.051)
Market and Economy News Update
U.S. markets end lower: U.S. markets sold off in the final minutes of trading to close more than 1 percent lower, as initial euphoria over Spain’s bank bailout, gave way to investor skepticism. The Dow Jones Industrial Average (INDEXDJX:.DJI) tumbled 1.14 percent to finish at 12,411.23. The S&P 500 (INDEXSP:.INX) fell 1.26 percent to end at 1,308.93, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) dropped 1.70 percent to close at 2,809.73.
Oil prices slip: Oil prices slipped to an eight month low on Monday, reversing early gains from a relief rally on Spain’s bailout plan. Crude oil for July delivery fell 1.7 percent, to settle at $82.70 a barrel on the New York Mercantile Exchange. Brent oil for July settlement dropped 1.5 percent to $98 a barrel on the London-based ICE Futures Europe exchange.
Company News Update
- Apple Inc. (NASDQA:AAPL) unveiled its next-generation MacBook Air and MacBook Pro portable computers at its annual Worldwide Developers Conference, which kicked off today in San Francisco.
- Texas Instruments Incorporated (NASDAQ:TXN) forecast second-quarter profit of 32 cents to 36 cents a share on revenue of $3.28 billion to $3.42 billion, that may top some analysts’ estimates.
- Airline industry group the International Air Transport Association expects The Boeing Company (NYSE:BA)’s profit to slump to $3 billion this year, down from $7.9 billion in 2011.
- Johnson & Johnson (NYSE:JNJ) has agreed to pay as much as $2.2 billion to settle U.S. probes of illegal marketing of the antipsychotic drug Risperdal.
- The US Food and Drug Administration said that Edwards Lifesciences Corp (NYSE:EW)’s Sapien heart valve met its safety and effectiveness goals in clinical research, but expressed caution about the higher risk of stroke.
- Diamond Foods, Inc. (NASDAQ:DMND), the owner of Pop Secret popcorn and Kettle Brand potato chips, said that it will miss its deadline to file restated financial reports, and expects a de-listing notice from the Nasdaq Stock Market.
- Health-care management company IntegraMed America, Incorporation. (NASDAQ:INMD) will be acquired by private equity firm Sagard Capital Partners in a $169.5 million deal.
- Pharma group Forest Laboratories, Inc. (NYSE:FRX) has slashed its current-year earnings forecast, citing weaker-than-expected revenues of its blockbuster antidepressant Lexapro.
- Nuclear power contractor EnergySolutions, Inc. (NYSE:ES) lowered its profit outlook for the year, citing a slowdown in government and commercial businesses. The company also appointed current board member David Lockwood, as chief executive and president.
- Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) reported positive results from a clinical trial of its new diabetes-related drug Optina.
- Mercury Computer Systems Inc. (NASDAQ:MRCY) has agreed to buy Micronetics Inc., a maker of radio and microwave frequency subsystems and components, for approximately $75.4 million in cash.
- Omnicare, Inc. (NYSE:OCR) Chief Executive John Figueroa stepped down after just 17 months at helm of the Cincinnati-based pharmacy operator.
- Sports-apparel maker Under Armour Inc (NYSE:UA) announced a 2-for-1 stock split, its first since going public in November 2005.
- Organic-foods grocer The Fresh Market Inc (NASDAQ:TFM) today announced a secondary stock offering of 10 million shares. It closed 4 percent lower.
- Oil and gas company ZaZa Energy Corp (NASDAQ:ZAZA) has ended its exploration and development agreements with Hess Corp. (NYSE:HES) in the Eagle Ford shale in South Texas and France’s Paris Basin.
Hedge Fund News Update
- Steve Cohen’s SAC Capital Advisors has appointed Louis Villa as a partner in its London office. Villa was a former portfolio manager at Edoma Partners, the fund set up by former Goldman Sachs proprietary trading chief Pierre-Henri Flamand.
- Data from the Commodity Futures Trading Commission showed money managers withdrew nearly $1.7 billion from commodity markets in the first week of June, amid a slowing global economy.
- Brevan Howard Asset Management’s flagship hedge fund, the BH Macro fund, suffered its third-consecutive down month in May, losing 1.78 percent. The fund, which has not had a losing year since its debut in 2007, is down 1.47 percent for the year.
- The Hedge Fund Association has roped in Adam J. Steinberg, as the new director of the group’s China chapter, in recognition of the region’s growing fund presence.
- Chicago-based alternative asset manager Mesirow Advanced Strategies has appointed Matthew Strube as senior vice president and head of portfolio research. Strube is a former director of the Teacher Retirement System of Texas.
- Stone Toro Asset Management’s event-driven fund, the ST Alpha Event Fund, has seen its assets under management jump from $8 million in April to $150 million in June.
- London-based Cube Capital, the $1.3 billion global alternatives investment firm, has launched the Cube Asia Frontier Fund, which will primarily invest in real estate in Vietnam, Myanmar and Mongolia.
Brokerage Upgrades and Downgrades on Monday, June 11, 2012
- Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) was raised to “buy” from “hold” at Dahlman Rose with a target price of $57.
- EMC Corporation (NYSE:EMC) was upgraded to “buy” from “hold” at Cantor Fitzgerald with a target price of $30.
- Gulfport Energy Corporation (NYSE:GPOR) was raised to “buy” from “hold” at Stifel Nicolaus with a target price of $25.
- NetApp Inc. (NASDAQ:NTAP) was upgraded to “buy” from “hold” at Cantor Fitzgerald with a target price of $38.
- NVIDIA Corporation (NASDAQ:NVDA) was raised to “buy” from “hold” at UBS with a target price of $15.5.
- AK Steel Holding Corporation (NYSE:AKS) was cut to “hold” from “buy” at Dahlman Rose.
- AK Steel Holding Corporation (NYSE:AKS) was downgraded to “sell” from “neutral” at Goldman Sachs.
- Centene Corp (NYSE:CNC) was cut to “hold” from “buy” at Cantor Fitzgerald with a target price of $29.
- IntegraMed America, Incorporation. (NASDAQ:INMD) was downgraded to “sell” from “neutral” at Dougherty & Company with a target price of $14.05.
- The Walt Disney Company (NYSE:DIS) was downgraded to “above average” from “buy” at Caris & Company with a target price of $52.
