Every morning we put out a report with the latest news in global stock markets, company news, and global economic news.

 

update

 

Morning Market Update

Market Levels

  • US:  Dow Futures: 13094.00 (-0.33%), S&P 500 Futures: 1394.00 (-0.45%), NASDAQ Futures: 2710.25 (-0.28%)
  • Europe: CAC: 3424.21 (-0.95%), DAX: 6916.62 (-0.70%), FTSE: 5839.31 (-0.21%)
  • Asia-Pacific: Australia: 4277.30 (-0.72%), China: 2168.81 (-0.24%), Hong Kong: 20136.12 (-0.66%), India: 5320.40 (-0.05%), Japan: 8891.44 (-0.98%).
  • Metals: Gold: 1611.60 (-0.53%), Silver: 27.78 (-1.11%), Copper: 3.37 (-1.69%)
  • Energy: Crude Oil: 91.85 (-1.62%), Natural Gas: 2.85 (-3.09%)
  • Commodities: Corn: 8.25 (0.80%), Soya Bean: 16.41 (3.16%), Wheat: 9.19 (1.17%)
  • Currency: EUR/USD: 1.2268 (-0.31%), GBP/USD: 1.5595 (-0.28%), USD/JPY: 78.2700 (-0.37%)
  • 10 year US Treasury: 1.644% (-0.044)

Financial and Economic News Update

U.S. stock-index futures decline: U.S. stock index futures are pointing to a lower open on Friday after China reported July export numbers that were much lower than what analysts’ were expecting. Chinese exports in July increased just 1 percent from a year earlier, adding to investor hopes that the central bank there will take steps to support the economy. On the home front, import prices fell for the fourth straight month, down 0.6 percent in July, according to the Labor Department. Analysts were expecting a gain of 0.1 percent. The Dow Jones industrial average, S&P 500 and NASDAQ futures were all trading close to half a percent lower.

European markets trading lower: European markets are trading in the red on Friday with the German DAX (INDEXDB:DAX) down 0.7 percent at 6916.62, the FTSE 100 (INDEXFTSE:UKX) fell 0.2 percent to 5839.31, and the CAC 40 (INDEXEURO:PX1) slumped 1 percent to 3424.21. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) fell 0.9 percent.

Asian markets end lower: Asian markets closed lower on Friday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 1 percent higher at 8,891.44 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.7 percent at 20,136.1 points, while the SSE Composite Index (SHA:000001) ended down 0.2 percent on the day. The S&P/ASX 200 (INDEXASX:XJO) index fell 31.0 points to 4,277.3. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed up 0.06 percent.

Stocks in Focus

U.S.

  • Retailer J.C. Penney Company, Inc. (NYSE:JCP) reported a second quarter loss of 37 cents per share that was wider than the average analysts’ estimate of a 25 cents per share loss. The company also said full-year earnings are likely to be lower than the previously provided guidance. Chief Executive Ron Johnson, however, says that plans of transforming the company are well on track.
  • Chesapeake Energy Corporation (NYSE:CHK) said U.S. regulators are probing the purchase and lease of Michigan oil and gas properties.
  • Yahoo! Inc. (NASDAQ:YHOO) was trading 4 percent lower in New York pre-market trading after analysts at Bank of America/Merrill Lynch downgraded the stock to “neutral” to “buy.” An SEC filing also showed the company is reconsidering a plan to return the cash generated from the sale of its stake in Chinese internet company Alibaba, to shareholders.
  •  International Business Machines Corp. (NYSE:IBM)  is interested in acquiring Research In Motion Limited (USA (NASDAQ:RIMM) (TSE:RIM)’s enterprise services unit, according to Bloomberg News.
  • Apparel maker Ralph Lauren Corp (NYSE:RL) said the board has authorized an additional $500 million to its share buyback program, over and above the $277 million still available under a prior plan.
  • Dunkin Brands Group Inc (NASDAQ:DNKN), the parent company of Dunkin’ Donuts will sell 21 million shares in a secondary stock offering, and also announced a 15 million share repurchase program.
  • Electronic Arts Inc. (NASDAQ:EA) and Activision Blizzard, Inc. (NASDAQ:ATVI) are likely to open lower after research firm NPD group said videogame industry sales fell 20 percent in July compared to the year ago period, its eighth-consecutive monthly sales drop.
  • Private equity firms TPG and Apax Partners are interested in acquiring Nike, Inc. (NYSE:NKE)’s Cole Haan unit, Reuters reported.
  • Retailer Big Lots, Inc. (NYSE:BIG) was down 2.3 percent after analysts at JPMorgan Chase downgraded the stock to “underweight” from “neutral.”
  • British soccer club Manchester United Ltd (NYSE:MANU) United makes its debut on the New York Stock Exchange today, under the ticker symbol “MANU,” after pricing its initial public offer at $14 per share, below the expected range of $16 to $20 per share.

Europe

  • British bank Barclays PLC (NYSE:BCS) (LON:BARC) was trading 2.7 percent higher after it named finance industry veteran David Walker as its new Chairman.
  • German reinsurer Hannover Rueckversicherung AG (ETR:HNR1) (FRA:HNR1) slumped 3.4 percent after second-quarter earnings missed analysts’ expectations.
  • Germany’s second-largest bank Commerzbank AG (ETR:CBK) (FRA:CBK) stumbled 2.8 percent after analysts at Deutsche Bank downgraded the stock to “hold” from” buy.”
  • British regional airlines Flybe Group Ltd (FLYB) led airline stocks lower, after it reduced its full year revenue outlook.
  • German steelmaker ThyssenKrupp AG (ETR:TKA) (FRA:TKA) jumped 3.3 percent higher after reporting third-quarter earnings that beat expectations, and reiterating its full-year guidance
  • London-based wholesale distributor Bunzl plc (LON:BNZL) fell 3.6 percent after analysts at UBS AG downgraded the firm to “sell” from “neutral.”
  • Finnish companies, Metso Oyj (HEL:MEO1V) and Outotec Oyj (HEL:OTE1V) declined in trade today after JPMorgan Chase & Co. lowered Metso to “underweight” from “neutral” and cut Outotec to “neutral” from overweight.”


Asia-Pacific

  • Hong Kong-based global supply chain manager Li & Fung Limited (HKG:0494) plunged to a 10-month low following a slew of broker downgrades after it posted a disappointing first half operating profit.
  • China Yurun Food Group Limited (HKG:1068), mainland China’s largest meat supplier, tumbled 6.1 after warning of a substantial decline in first half net profit.
  • Trend Micro Incorporated (TYO:4704), the Japanese maker of anti-virus software fell 9.1 percent in Tokyo after second quarter earnings declined.
  • Australian gaming group Tabcorp Holdings Limited (ASX:TAH) reported full year underlying earnings that were slightly better than market expectations, and said it was off to a good start in the current financial year.
  • Japanese online gaming company DeNA Co., Ltd. (TYO:2432) surged 22.1 percent, after reporting better than expected first quarter profit and sales.
  • Electronic parts maker Taiyo Yuden Co Ltd (TYO:6976) climbed 10.3 percent in Tokyo trading after first quarter earnings beat expectations.

Economic Calendar for Friday, August 10, 2012:

08:30 A.M. ET:    Import and Export Prices (July)
02:00 P.M. ET:    Treasury Budget (July)