Every afternoon we provide an update on global market levels, company news, economic news, and hedge fund news.
Post Market Update
Market Levels
- US: Dow: 12837.30 (0.75%), S&P 500: 1357.98 (0.98%), NASDAQ: 2929.76 (1.19%)
- Europe: CAC: 3117.92 (1.66%), DAX: 6363.36 (1.81%), FTSE: 5586.31 (1.70%).
- Asia-Pacific: Australia: 4136.90 (1.96%), China: 2316.05 (0.40%), Hong Kong: 19427.81 (1.00%), India: 5064.25 (-1.46%), Japan: 8721.02 (1.74%).
- Metals: Gold: 1623.30 (-0.23%), Silver: 28.37 (-1.06%), Copper: 3.43 (1.12%)
- Energy: Crude Oil: 84.03 (0.91%), Natural Gas: 2.54 (-3.42%)
- Commodities: Corn: 5.63 (5.52%), Soya Bean: 13.84 (3.38%), Wheat: 6.93 (3.12%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2685 (-0.86%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5725 (-0.35%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.9350 (-0.20%)
- 10 year US Treasury: 1.620% (0.046)
Market and Economy News Update
U.S. markets end higher: U.S. markets rallied on Tuesday on speculation that the Federal Reserve will announce further steps to help the U.S. economy. The Dow Jones Industrial Average (INDEXDJX:.DJI) climbed 0.75 percent to close at 12,837.33. The S&P 500 (INDEXSP:.INX) rose 0.98 percent to end at 1,357.98, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) jumped 1.19 percent to finish at 2,929.76.
Oil prices rise: Oil prices gained on Tuesday on growing investor optimism that that the Federal Reserve will announce measures to boost the U.S. economy. Crude oil for July delivery jumped 0.9 percent, to settle at $84.03 a barrel on the New York Mercantile Exchange. Brent oil for August settlement dropped 0.3 percent to $95.76 a barrel on the London-based ICE Futures Europe exchange.
Company News Update
- Adobe Systems Incorporated (NASDAQ:ADBE) posted second quarter earnings excluding certain items of 60 cents per share on revenue of $1.12 billion. Analysts were expecting earnings of 59 cents per share on revenue of $1.11 billion. The company cut its full-year revenue outlook anticipating weaker demand from Europe.
- Electronics manufacturing services provider Jabil Circuit, Inc. (NYSE:JBL) posted third quarter earnings excluding one time items of 64 cents a share, in line with expectations. Revenue however missed estimates.
- Jamie Dimon, Chief Executive Officer of JPMorgan Chase & Co. (NYSE:JPM) told U.S. House members that the bank was upfront with investors about changes that contributed to the bank’s trading loss of at least $2 billion.
- The U.S. Consumer Financial Protection Bureau received the largest number of complaints against major U.S. banks like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC) and Citigroup Inc. (NYSE:C), in 2011.
- Drug maker Eli Lilly & Co. (NYSE:LLY) is planning to resume its stock buy back its program.
- Semiconductor maker Applied Materials, Inc. (NASDAQ:AMAT) has named Gary Dickerson as its new President.
- MetLife Inc (NYSE:MET), the largest U.S. life insurer, which is seeking to raise its dividend and resume share buyback after being twice blocked by the regulator, received a boost after it was granted more time to submit a fresh capital plan to the Fed.
- Todd Larsen, president of Dow Jones & Co., which is owned by News Corp (NASDAQ:NWSA) and publishes The Wall Street Journal and Barron’s, stepped down from the position today.
- Biopharmaceutical company Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX) announced positive clinical results for its hepatitis C virus drug candidates IDX184 and IDX719.
- Chip maker Nvidia Corporation (NASDAQ:NVDA) soared 6.7 percent after Microsoft Corporation (NASDAQ:MSFT) said it would use its ARM-based processor to power a version of its new tablet unveiled on Monday.
- Department store operator The Bon-Ton Stores, Inc. (NASDAQ:BONT) has agreed to sell its $475 million private label credit card business to Alliance Data Systems Corporation (NASDAQ:ADS).
- Naperville-based OfficeMax Incorporated (NYSE:OMX) closed 6.7 percent higher a day after investment firm Neuberger Berman disclosed a 5 percent stake in the retailer.
- A federal court sided with video-ringtone company Vringo, Inc. (NYSEAMEX:VRNG) in a hearing concerning patents and intellectual property. The stock ended percent higher.
Hedge Fund News Update
- Private-equity firm KKR & Co. L.P. (NYSE:KKR) agreed to acquire New York-based fund-of-hedge-funds manager Prisma Capital Partners LP, in a deal whose financial terms weren’t disclosed. Prisma Capital managed assets of $7.8 billion as of April 1.
- London-based hedge fund The Children’s Investment Fund has that Britain’s Financial Services Authority should ask Lloyds Banking Group PLC (NYSE:LYG), Britain’s second biggest publicly owned lender, to boost capital by swapping its more than 10 billion pounds ($15.67 billion) of contingent convertible capital into common equity.
- Don Brownstein’s Structured Portfolio Management LLC will start a fund that buys and rents out homes, Bloomberg reported.
- Hedge fund managers think that the German bond market is too expensive and is ready for a significant sell-off in the next few months, according to a poll conducted at an industry conference in Monaco.
- According to Jamil Baz, chief investment strategist at GLG Partners, part of the world’s second-largest hedge fund, Man Group, the current global financial crisis will last a very long time, and it might take as long as 15 to 20 years for major economies to cut their debt levels.
- William Michaelcheck’s multi-strategy hedge fund Mariner Investment Group LLC will start a pool to invest in new hedge funds, according to a Bloomberg report.
Brokerage Upgrades and Downgrades on Tuesday, June 19, 2012
- Healthcare Services Group, Inc. (NASDAQ:HCSG) was upgraded to “buy” from “hold” at Stifel Nicolaus with a target price of $21.
- Integra Lifesciences Holdings Corp (NASDAQ:IART) was raised to “buy” from “hold” at Argus with a target price of $44.
- Nokia Corporation (ADR) (NYSE:NOK) was upgraded to “positive” from “neutral” at Avian.
- Valero Energy Corporation (NYSE:VLO) was raised to “buy” from “neutral” at UBS AG with a target price of $26.
- W.W. Grainger, Inc. (NYSE:GWW) was upgraded to “positive” from “hold” at BB&T Capital Mkts.
- AK Steel Holding Corporation (NYSE:AKS) was cut to “neutral” from “buy” at UBS AG with a target price of $5.
- Body Central Corp (NASDAQ:BODY) was downgraded to “neutral” from “outperform” at Robert W. Baird with a target price of $9.
- Capstone Turbine Corporation (NASDAQ:CPST) was downgraded to “market perform” from “outperform” at FBR Capital with a target price of $1.5.
