Morning Market Update
* US: Dow Futures: 12799.00 (-0.07%), S&P 500 Futures: 1357.10 (0.05%), NASDAQ Futures: 2610.50 (0.03%)
* Europe: CAC: 3239.14 (1.31%), DAX: 6498.78 (1.27%), FTSE: 5604.52 (0.60%).
* Asia-Pacific: Australia: 4133.00 (0.94%), China: 2226.11 (0.03%), Hong Kong: 19441.46 (0.00%), India: 5278.60 (-0.01%), Japan: 9003.48 (-0.04%).
* Metals: Gold: 1591.90 (-0.77%), Silver: 27.46 (-0.57%), Copper: 3.47 (-0.66%)
* Energy: Crude Oil: 83.66 (-1.53%), Natural Gas: 2.77 (-2.02%)
* Commodities: Corn: 6.57 (0.24%), Soya Bean: 14.49 (1.49%), Wheat: 7.89 (1.14%)
* Currency: EUR/USD: 1.2600 (-0.52%), GBP/USD: 1.5709 (0.01%), USD/JPY: 79.7400 (-0.06%)
* 10 year US Treasury: 1.616% (-0.029)
Financial and Economic News Update
U.S. stock-index futures mixed: U.S. stock index futures are pointing to a mixed open on Monday, following a sharp rally on Friday, as investors await a report on U.S. manufacturing activity. The Dow futures, the S&P futures and the NASDAQ future are all trading close to the flat-line.
European markets jump higher: European markets are trading higher, with the German DAX (INDEXDB:DAX) trading 1.3 percent higher at 6498.78, the FTSE 100 (INDEXFTSE:UKX) up 0.6 percent at 5604.52, and the CAC 40 (INDEXEURO:PX1) jumped 1.3 percent to 3239.14. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) soared 1.1 percent.
Asian markets end higher: Asian markets edged higher on Monday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) ending almost unchanged at 9,003.48. The HANG SENG INDEX (INDEXHANGSENG:HSI) was closed for a public holiday, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index)ended at 2,226.1 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped close to a percent higher to 4,133. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index finished down 0.2 percent at 17,398.98 points.
Stocks in Focus
* Dell Inc. (NASDAQ:DELL) has agreed to acquire California-based enterprise management software maker, Quest Software, Inc. (NASDAQ:QSFT), for $2.4 billion in cash.
* Bristol Myers Squibb Co. (NYSE:BMY) will buy diabetes-drug maker Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN), for $31 per share, or $5.3 billion in cash.
* Anadarko Petroleum Corporation (NYSE:APC), the third- largest U.S. independent oil and natural-gas producer by market value, has entered into a $556 million joint venture with an undisclosed party to develop its deepwater Lucius project in the Gulf of Mexico.
* Technology distributor Ingram Micro Inc. (NYSE:IM) has agreed to buy wireless device company BrightPoint, Inc. (NASDAQ:CELL) for $650 million in cash, as it looks to expand in the high-margin mobility segment
* GlaxoSmithKline plc (ADR) (NYSE:GSK) and US partner Theravance Inc (NASDAQ:THRX), said that their experimental once-daily chronic obstructive pulmonary disease drug, LAMA/LABA, showed positive results in a late stage clinical trial.
* U.S. chipmaker Micron Technology, Inc. (NASDAQ:MU) has agreed to acquire bankrupt Japanese rival Elpida Memory Inc (TYO:6665) for $750 million in cash.
* Sony Computer Entertainment, a subsidiary of Sony Corporation (NYSE:SNE),will pay $380 million to acquire cloud-based interactive gaming company, Gaikai Inc.
* Universal Pictures’ R-rated comedy, “Ted,” overtook Pixar’s “Brave” as the top film in North America last weekend with $54.1 million in sales. Universal Pictures is controlled by Comcast Corporation (NASDAQ:CMCSA).
* EverBank Financial Corp (NYSE:EVER) said it will buy Business Property, a unit of GE Capital Real Estate, for $2.51 billion in cash.
* Exchange operator, Nasdaq OMX Group, Inc. (NASDAQ:NDAQ), has completed the acquisition of Nordic clearing house, NOS Clearing ASA, with a view to expand its operations in Europe.
* United Parcel Service, Inc. (NYSE:UPS) was downgraded to “hold” from “buy” at Deutsche Bank, citing higher valuation. The stock was down 1.3 percent in New York pre-market trading.
* Barclays plc has downgraded insurance company Lincoln National Corporation (NYSE:LNC), and online reservation company, OpenTable Inc (NASDAQ:OPEN), to “equal weight” from “overweight.”
* Marcus Agius, the chairman of Barclays PLC (NYSE:BCS) quit on Monday, in the wake of the interest rate rigging scandal that led to a record fine of 290 million pounds ($455 million).
* French bank Credit Agricole SA (EPA:ACA) is in talks with the National Bank of Greece SA to sell its struggling Greek unit Emporiki Bank, the Financial Times reported.
* German industrial and medical gas producer Linde AG (ETR:LIN) has agreed to buy Florida-based home-care oxygen services provider, Lincare Holdings Inc. (NASDAQ:LNCR), in a deal worth $4.6 billion.
* European Union regulators are likely to approve British telecom major Vodafone Group Plc (ADR) (NASDAQ:VOD)’s 1 billion pound ($1.57 billion) bid for Cable & Wireless Worldwide PLC (LON:CW), Reuters reported.
* Danish wind turbine maker Vestas Wind Systems is reportedly planning to put itself up for sale after the company entered into debt restructuring talks with lenders that include the Royal Bank of Scotland Group plc (NYSE:RBS) and HSBC Holdings plc (NYSE:HBC).
* German hospital operator Rhoen-Klinikum AG (ETR:RHK) plunged 6 percent in Frankfurt trading after Fresenius SE & Co KGaA (ETR:FRE) failed in its 3.1 billion euro ($4.1 billion) bid to acquire the company.
* The Federal German cartel office has cleared the 3.2 billion euro ($4.1 billion) sale of E.ON AG (ETR:EOAN)’s gas transmission grid to a consortium led by Australia’s Macquarie Group Limited (ASX:MQG).
* Technology giant Apple Inc. (NASDAQ:AAPL) has agreed to pay $60 million to Chinese company Proview Technology to settle a dispute over the iPad trademark in the Chinese mainland.
* Goldman Sachs Group, Inc. (NYSE:GS), the first non-Japanese company to start a private real estate investment trust (REIT) in the country, is planning to expand its private REIT to as much as 300 billion yen ($3.7 billion), amid signs of a turnaround in real estate prices.
* David Jones Limited (ASX:DJS), Australia second largest department store chain, plunged percent on Monday after the little know British private equity firm, EB Private Equity, withdrew a 1.65 billion Australian dollars ($1.67 billion) takeover offer.
* Shanghai-listed car makers, SAIC Motor Corporation Limited (SHA:600104), Guangzhou Automobile Group Co., Ltd. (SHA:601238) and Great Wall Motor Co Ltd (SHA:601633), ended the day sharply lower after the southeastern city of Guangzhou decided to limit the number of new car purchases in order to reduce congestion.
* Kansai Electric Power Co Inc (TYO:9503) restarted the 1,180-megawatt reactor No. 3 at the Ohi nuclear plant late Sunday. This was the first Japanese nuclear reactor to become operational, following the meltdown at the Fukushima power plant last year.
* Australian gaming machine maker Aristocrat Leisure Limited (ASX:ALL) forecast first half net profit of 30 million-33 million Australian dollars, well short of the 39.3 million Australian dollars average analysts’ estimate.
* Japan’s largest shipping line, Nippon Yusen Kabushiki Kaisha (TYO:9101), expects sales at logistics operations to double to 800 billion yen ($10 billion) over the next seven years, Bloomberg reported.
* Sydney-based property and infrastructure developer, Lend Lease Group (ASX:LLC), said it expects to post a modest rise in full-year profit, beating market expectations for a fall.
Economic Calendar for Monday, July 02, 2012:
09:00 A.M. ET: Markit Manufacturing PMI (June)
10:00 A.M. ET: Construction Spending (MoM) (May)
10:00 A.M. ET: ISM Manufacturing PMI (June)
10:00 A.M. ET: ISM Prices Paid (June)
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction