Every morning we put out a report with the latest news in global stock markets, company news, and global economic news. Stocks in focus today include; BNP, CAH, DTV, GM, RBS, SNE, VE, SNI, TM
Morning Market Update
- US: Dow Futures: 12884.00 (-0.30%), S&P 500 Futures: 1360.60 (-0.76%), NASDAQ Futures: 2612.00 (-0.50%)
- Europe: CAC: 3269.55 (-1.59%), DAX: 6650.67 (-1.56%), FTSE: 5672.77 (-0.71%)
- Asia-Pacific: Australia: 4269.50 (0.16%), China: 2111.18 (-0.58%), Hong Kong: 19690.20 (-0.66%), India: 5227.75 (-0.24%), Japan: 8653.18 (0.13%).
- Metals: Gold: 1610.40 (0.19%), Silver: 27.54 (0.00%), Copper: 3.35 (-0.62%)
- Energy: Crude Oil: 88.79 (-0.13%), Natural Gas: 3.12 (-1.64%)
- Commodities: Corn: 7.92 (-1.00%), Soya Bean: 16.12 (-1.00%), Wheat: 8.83 (-1.12%)
- Currency: EUR/USD: 1.2208 (0.17%), GBP/USD: 1.5557 (-0.15%), USD/JPY: 78.1850 (-0.29%)
- 10 year US Treasury: 1.478% (-0.046)
Financial and Economic News Update
U.S. stock-index futures trading lower: U.S. stock index futures are pointing to a lower open on Thursday after the European Central Bank failed to live up to market expectations. The ECB did not initiate immediate action to buy bonds, and left its key interest rate unchanged at 0.75 percent. The Dow Jones industrial average, S&P 500 and NASDAQ futures were all trading around half a percent lower
European markets trading in the red: European markets are trading lower on Thursday with the German DAX (INDEXDB:DAX) down 1.6 percent at 6650.67, the FTSE 100 (INDEXFTSE:UKX) fell 0.7 percent to 5672.77, and the CAC 40 (INDEXEURO:PX1) declined 1.6 percent to 3269.55. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was plunged 2 percent.
Asian markets end mostly lower: Asian markets closed lower on Thursday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 0.1 percent higher at 8,653.18. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.7 percent at 19,690.2, while the SSE Composite Index (SHA:000001) closed down 0.6 percent at 2,111.2. The S&P/ASX 200 (INDEXASX:XJO) index rose 7 points to 4,269.5. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.19 percent to 17,223.84 points.
Stocks in Focus
· General Motors Company (NYSE:GM) reported second quarter profit excluding items of 90 cents a share that beat the average analysts’ estimate of 75 cents a share. Revenue declined 5 percent to $37.6 billion, slightly short of estimates.
· DIRECTV (NASDAQ:DTV) reported second-quarter profit that missed estimates after losing more subscribers in the United States than analysts had expected. Revenue for the quarter was broadly in line with Street expectations.
· Time Warner Cable Inc (NYSE:TWC), the second-largest U.S. cable-television provider, posted second quarter earnings excluding one-time items of $1.48 per share that topped the average analysts’ estimate of $1.38 per share. Revenue increased 9.3 percent to $5.40 billion, also beating estimates of $5.39 billion.
· Health insurer Cigna Corporation (NYSE:CI) posted second quarter earnings excluding special items of $1.49 per share, topping analysts' estimates of $1.42 per share. Revenue for the quarter stood at $7.46 billion, above Wall Street expectations of $7.24 billion. The company raised its full-year earnings forecast for the second time this year.
· Beam Inc (NYSE:BEAM) reported second quarter earnings excluding items of 58 cents per share, 4 cents above consensus estimate. Revenue increased 4.4 percent to $595.5 million. The maker of Jim Beam and Maker's Mark bourbons also raised its full-year earnings forecast.
· Cardinal Health, Inc. (NYSE:CAH) posted fiscal fourth quarter earnings excluding one-time items of 73 cents a share, on revenue of $26.8 billion. Analysts were expecting earnings of 72 cents a share on revenue of $27.3 billion.
· Parker-Hannifin Corporation (NYSE:PH) reported fourth quarter profit of $302.0 million, or $1.96 per share, on revenue of $3.41 billion. Analysts were looking for a profit of $1.91 a share on $3.42 billion in sales.
· Spectra Energy Corp. (NYSE:SE) posted second quarter earnings excluding items of 33 cents a share, on revenue of $1.11 billion that missed the average analysts’ estimate of earnings of 36 cents a share on revenue of $1.27 billion.
· Scripps Networks Interactive, Inc. (NYSE:SNI) reported second quarter profit of $142.4 million, or 93 cents a share, on revenue of $601 million. Analysts had forecast earnings of 87 cents on revenue of $593 million. The cable-network operator also raised its full-year revenue outlook.
· Teradata Corporation (NYSE:TDC) posted second quarter earnings excluding items of 77 cents per share that beat Street estimates of 65 cents a share. Total revenue increased 14 percent to $665 million, also topping estimates of $660.4 million. The analytic data services provider also raised its full-year profit forecast
- French bank BNP Paribas SA (EPA:BNP) reported a better than expected 13.2 percent fall in second-quarter net profit to 1.85 billion euros ($2.26 billion) from the same period last year, and said it has hit its capital ratio target six months early.
- Europe’s second-biggest airline Deutsche Lufthansa AG (ETR:LHA) (FRA:LHA) reported a 28 percent jump in second quarter operating profit to 361 million euros from 283 million euros a year earlier that beat analysts’ estimates of a 226 million-euro profit. Second-quarter revenue increased 6.4 percent to 7.89 billion euros from a year earlier.
- French utility Veolia Environnement Ve SA (ADR) (NYSE:VE) (EPA:VIE) reported first-half profit that missed market expectations, dragged by an 89 million euros ($108.8 million) write-down of its Dalkia energy business in Italy. Revenue at the world’s biggest water company increased 3.3 percent to 14.8 billion euros.
- Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) was trading 1.7 percent lower in London after the Financial Times yesterday reported that the British government was mulling over plans to fully nationalize the bank.
- German logistics giant Deutsche Post AG (ETR:DPW) (FRA:DPW) reported second quarter adjusted earnings of 581 million euros ($714.45 million) that beat consensus estimate of 568 million euros. The company also raised its full-year earnings forecast.
- British asset management firm Schroders plc (LON:SDR) posted a 17 percent decline in first half net profit to 137.1 million pounds, from 165.7 million pounds a year earlier. Assets under management stood at 194.6 billion pounds on June 30, down from 204.8 billion pounds on December 31, 2011.
- Prosthetics maker Smith & Nephew plc (ADR) (NYSE:SNN) (LON:SN) more than doubled its second quarter per-tax profit and hiked its half-year dividend by 50 percent.
- U.K. real estate investment trust Segro plc (LON:SGRO) reported first-half earnings excluding item of 9.9 pence a share from 9.4 pence a year earlier. The company said it will pay an unchanged dividend, allaying investor concerns of a reduced payout.
- Japanese electronics giant Sony Corporation (ADR) (NYSE:SNE) (TYO:6758) reported first quarter net loss of 24.6 billion yen ($316 million) compared with a loss of 15.5 billion yen a year earlier. Revenue increased 1.4 percent to 1.52 trillion yen ($19.4 billion), and the company recorded an operating profit of 6.28 billion yen. Sony lowered its full-year earnings and revenue forecast.
- Japanese automakers reported strong U.S. sales in July. Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203)’s July U.S. sales rose 26 percent, while those of Nissan Motor Co., Ltd. (TYO:7201) were up 16.2 percent, and Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267)‘s sales surged 45 percent.
- Chinese property-developer ended the day sharply lower amid concerns about future government curbs for the sector, a day after data showed a rise in housing prices. Poly Real Estate Group Co., Ltd (SHA:600048) lost 9.1 percent, Gemdale Corporation (SHA:600383) fell 6.4 percent, while sector leader China Vanke Co., Ltd. (SHE:000002) fell 6.8 percent in Shenzhen. China Resources Land
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