update

Market Levels

 

 

  • US:  Dow Futures: 12665.00 (-0.35%), S&P 500 Futures: 1346.70 (-0.37%), NASDAQ Futures: 2572.00 (-0.19%)
  • Europe: CAC: 3172.21 (-0.27%), DAX: 6547.86 (-0.14%), FTSE: 5661.99 (-0.07%)
  • Asia-Pacific: Australia: 4105.10 (0.56%), China: 2147.96 (-1.77%), Hong Kong: 19121.34 (0.15%), India: 5197.25 (-0.57%), Japan: 8724.12 (0.00%).
  • Metals: Gold: 1587.10 (-0.31%), Silver: 27.10 (-0.98%), Copper: 3.48 (-0.70%)
  • Energy: Crude Oil: 86.78 (-0.37%), Natural Gas: 2.91 (1.15%)
  • Commodities: Corn: 7.70 (1.47%), Soya Bean: 15.91 (1.72%), Wheat: 8.91 (0.03%)
  • Currency: EUR/USD: 1.2242 (-0.06%), GBP/USD: 1.5599 (0.15%), USD/JPY: 78.8800 (-0.40%)
  • 10 year US Treasury: 1.457% (-0.030)   

 

Financial and Economic News Update

 

 

U.S. stock-index futures marginally lower: U.S. stock index futures are pointing to a lower open on Monday following a weaker-than-expected retail sales data. U.S. retail sales fell 0.5 percent in June, the third straight monthly drop, amid a broad slump in consumer demand, the Commerce Department said today. The Dow futures, the S&P futures and the NASDAQ future are all trading in the red.

 

European markets in the red: European markets are trading lower, with the German DAX (INDEXDB:DAX) trading down 0.1 percent at 6547.86, the FTSE 100 (INDEXFTSE:UKX) was 0.1 percent lower at 5661.99, and the CAC 40 (INDEXEURO:PX1) declined 0.3 percent to 3172.21. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.50 percent.

 

 

Asian markets edge higher: Asian markets closed mixed on Friday amid profit warnings from heavyweight Chinese companies.. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) was closed for a public holiday. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 0.2 percent at 19,121.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended down 1.7 percent to 2,147.96. The S&P/ASX 200 (INDEXASX:XJO) index ended up 22.9 points to 4,105.1. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed down 0.6 percent to 17,096.98 points.

 

Stocks in Focus

 

U.S.

 

  • Citigroup Inc. (NYSE:C) reported second quarter earnings, excluding certain items of $1 that best the average analysts’ estimate of 89 cents per share. Revenue for the quarter came in at $18.6 billion that trailed Street expectations of $18.8 billion.
  • Media holding company Gannett Co., Inc. (NYSE:GCI) reported second quarter earnings, excluding certain items, of 56 cents per share, on revenue of $1.31 billion that missed analysts’ estimate of earnings of 58 cents per share, on revenue of $1.32 billion.
  • Hewlett-Packard Company (NYSE:HPQ)’s $2 billion multiyear services contract with General Motors Company (NYSE:GM) could be in danger, following the automaker’ decision to bring much of its IT work in-house. Separately, Lenovo Group Limited (HKG:0992) is well on track to overtake Hewlett-Packard Company (NASDAQ:HPQ) as the world’s biggest personal computer maker by sales as early as this year, according to a Reuters report.
  • Apollo Global Management LLC (NYSE:APO) is planning to table a bid for The McGraw-Hill Companies, Inc. (NYSE:MPH)’s education unit, in a deal worth as much as $3.8 billion, according to The Wall Street Journal.
  • Nokia Corporation (ADR) (NYSE:NOK) has slashed the price of its flagship smart phone in the United States, the Lumia 900, to $49.99 from $99, in a bid to gain ground against the more popular Apple Inc. (NASDAQ:AAPL) and Samsung.
  • Private equity firm TPG has agreed to acquire U.S.-based generic drugmaker, Par Pharmaceutical Companies, Inc. (NYSE:PRX) for $50 per share, a 37 percent premium to Friday’s closing price of $36.58.
  • General Electric Company (NYSE:GE) has been downgraded to “equal weight” from “overweight,” by analysts at Morgan Stanley, while the price target was left unchanged at $22. The stock was down 1 percent in pre-market trading.
  • 3M Co (NYSE:MMM) has been upgraded to “overweight” from “equal weight” by analysts at Morgan Stanley, who said that historically, 3M has managed to stage an early recovery from slowdowns and recessions.
  • Restaurant chain Panera Bread Co (NASDAQ:PNRA) has been downgraded to “underweight” from “overweight” at Piper Jaffray, and its target price has been lowered to $129 from $165.
  • Life sciences equipment maker Thermo Fisher Scientific Inc. (NYSE:TMO) has agreed to buy privately held transplant diagnostics firm, One Lambda, for $925 million in cash.
  • Regis Corporation (NYSE:RGS) has agreed to sell its hair loss products unit, Hair Club for Men and Women, to Japan’s Aderans Co Ltd (TYO:8170), for $163.5 million in cash.

 

Europe

 

  • British drug maker GlaxoSmithKline plc (ADR) (NYSE:GSK) (LON:GSK) has agreed to acquire US biotechnology company, Human Genome Sciences (NASDAQ:HGSI), for about $2.8 billion.
  • London-listed security group G4S plc (LON:GFS) plunged 8.2 percent, following downgrades at UBS AG and Jefferies, after the company revealed it expects to incur a loss of between 35 million pounds ($54.5 million) and 50 million pounds ($77 million) in its London Olympic Games contract.
  • Spanish lenders Banco Santander, S.A. (NYSE:SAN) and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) slumped 1 percent, after The Wall Street Journal reported that the European Central Bank, in a major turnaround, has advocated imposing losses on senior bondholders of Spanish banks.
  • Commodities trader Glencore International Plc (LON:GLEN), has received approval from Canadian regulator for its roughly 6.1 billion Canadian dollars ($6 billion) takeover of agribusiness group, Viterra Inc. (TSE:VT).
  • H & M Hennes & Mauritz AB (STO:HM-B), Europe’s second-largest clothing retailer, reported a lower than expected sales growth of 13 percent in June.  
  • The Sage Group plc (LON:SGE), the U.K.’s biggest software maker, said that trading performance in the third quarter has been broadly in-line with its expectations, despite a toughening economic environment.
  • Swedish bank Skandinaviska Enskilda Banken AB (STO:SEB-A) jumped 6.8 percent after reporting second-quarter earnings that beat market expectations.
  • French oil major Total S.A. (ADR) (NYSE:TOT) (EPA:EP) was cut to “hold” from “buy” at Societe Generale. Dutch insurer, Delta Lloyd NV (AMS:DL) was upgraded to “buy” from “neutral” at Citigroup Inc.

 

Asia

  • Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) are set to report lackluster sales growth figures amid a slowdown in demand from China, the world’s second largest economy, according to a report in Bloomberg News.
  • Thai oil firm PTT Exploration and Production has extended the deadline for its $1.9 billion offer for East Africa-focused gas explorer, Cove Energy PLC (LON:COV), to July 25. The Thai company is locked in a battle with Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (LON:RDSA) to takeover the company.
  • Chinese telecommunications equipment maker, ZTE Corporation (H Shares) (HKG:0763), slumped to their lowest level in more than three years in Hong Kong trading, after the company said that first-half profit could fall as much as 80 per cent from a year ago.
  • Australian coal magnate Nathan Tinkler has offered 5.3 billion Australian dollars (US$5.35 billion) to take the country’s largest independent coal company, Whitehaven Coal Limited (ASX:WHC), private.
  • Oil and gas producer Beach Energy Limited (ASX:BPT) announced plans to accelerate its unconventional gas exploration program in the Australian Cooper Basin, with Icon Energy Limited (ASX:ICN).
  • Credit Suisse maintained its “outperform” rating on Sun Hung Kai Properties Limited (HKG:0016), Asia’s largest property developer by market value, despite the joint chairmen of the company being formally charged with bribery offenses by Hong Kong’s anti-graft law enforcement agency on Friday.
  • BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT), the world’s largest mining company, soared 1 percent in Sydney trading after it was rated new “overweight” at Barclays Capital.
  • Chinese home appliance retailer Suning Appliance Co., Ltd. (SHE:002024) sank by the daily limit of 10 percent in Shenzhen trading after the company warned that first-half profit may fall more than previously forecast due to lower sales.

 

Economic Calendar for Monday, July 16, 2012:

 

08:30 A.M. ET:    Retail Sales (MoM) (June)

08:30

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